2017 Latin American Cloud IP Telephony and UC&C … is the technology provider of choice in the...

2017 Latin American Cloud IP Telephony and UC&C Services

Platform Provider of the Year Award

BEST PRACTICES RESEARCH

© Frost & Sullivan 2017 2 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 3

Industry Challenges .............................................................................................. 3

Visionary Innovation & Performance and Customer Impact ........................................ 4

Significance of Company of the Year ............................................................................. 7

Understanding Company of the Year ............................................................................. 7

Key Benchmarking Criteria .................................................................................... 8

Best Practices Award Analysis for BroadSoft .................................................................. 8

Decision Support Scorecard ................................................................................... 8

Visionary Innovation & Performance ....................................................................... 9

Customer Impact ................................................................................................. 9

Decision Support Matrix ...................................................................................... 10

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 11

The Intersection between 360-Degree Research and Best Practices Awards ..................... 12

Research Methodology ........................................................................................ 12

About Frost & Sullivan .............................................................................................. 12



Background and Company Performance

Industry Challenges

The cloud Internet protocol (IP) telephony and unified communication and collaboration

(UC&C) services market is experiencing a rapid growth trajectory in Latin America

(Latam). Organizations increasingly recognize the benefits of cloud-based solutions,

including the operational expenditure (OPEX) consumption model that drastically reduces

capital expenditure (CAPEX), the scalability and flexibility to increase or decrease the

number of ports on a per-month basis, improved productivity, greater collaboration within

and among teams, faster decision-making processes, and provision of state-of-the-art

technology.

At the same time, many communications service providers (CSPs) launched new offerings

during 2015 and 2016 in almost every country in Latam, which has significantly increased

the level of competition and the availability of services to customers. Subsequently, the

economic crisis that Latam has endured over the last few years pushed numerous

organizations to avoid big upfront investments in technology and instead opt for recurring,

subscription-based charges.

However, convincing hold-out organizations about the benefits of cloud IP telephony and

UC&C services poses a major challenge in the region as some remain content with legacy

premises-based equipment and refuse to switch over to cloud-based solutions.

Furthermore, many enterprises are still concerned about security and integration issues

with cloud developments, and with the service level they would receive, considering the

deficient telecommunications infrastructure in the region can complicate compliance with

service level agreements (SLAs).

Overall, CSPs are increasingly challenged with greater competition in every segment of

this market, including small to medium-sized businesses (SMBs), large enterprises, and

government agencies, as well as with ever-growing demand from customers who request

additional features at lower price-points as they learn more about the advantages the

cloud creates and have increased options in the marketplace.

Further, rapid technology evolution in the enterprise realm is forcing technology providers

to continuously adjust and enhance their endpoint and client portfolios. Changes are not

only feature-specific, but also involve back-end modifications related to the provisioning

and delivery of the endpoints. Today, for instance, more business users expect the

experience they have on their personal devices to be replicated in the enterprise

communications and collaboration environment. Attempts to keep pace with the agile and

ever-changing nature of the workforce have moved many vendors outside of their

traditional development, sales, and support comfort zones.



Visionary Innovation & Performance and Customer Impact

BroadSoft is a global provider of software and services that enable CSPs to deliver hosted,

cloud-based unified communications, or UC, to their enterprise customers. The company´s

service provider (SP) customers, who are located in more than 80 countries, are delivering

services and have deployed over 13 million lines worldwide using BroadSoft software. The

company counts among its customers 25 of the top 30 CSPs globally, as measured by

revenue for the year ended on December 31, 2015.

Value Proposition

BroadSoft brings best-in-class productivity and collaboration tools to businesses in Latin

America through a comprehensive and advanced suite of enterprise-ready cloud-based

private branch exchange (PBX), UC, team collaboration, and contact center services,

making big system sophistication affordable for businesses of all sizes. The company aims

to transform organizations of various types by integrating communications into business

productivity and workflows while enhancing process agility. BroadSoft empowers Latin

American companies to redefine the future of work by inspiring teams to create,

collaborate, and maximize performance on a daily basis.

Frost & Sullivan research finds that while the Latin American market suffered from

challenging economic conditions during the last 2 to 3 years, BroadSoft dynamically

adapted to this environment to stay competitive, gain market penetration, and improve

customer experience. One of the biggest challenges for all industry players during the

strenuous economic period was that Latin American organizations became more price

sensitive regarding enterprise communications solutions, leading SPs to look for

competitive platforms that provide affordable services and reach a greater number of

organizations. BroadSoft successfully positioned its cost-competitive platform BroadWorks

in response, while at the same time incentivizing Latin American organizations to

transition over to its full-fledged UC by expanding its product portfolio across the region.

Market Leader in Latin America

According to Frost & Sullivan’s independent research, in 2016, BroadSoft led the cloud IP

telephony and UC&C services market in Latin America, with 36.3% of all users in the

region employing services based on its platform. The company has successfully penetrated

several CSPs across the region, such as Telefónica, Telmex, Embratel, Claro, Cable &

Wireless Panama, Alestra, Digicel, and Level 3, among many others. As a result, Latin

American organizations are using cloud IP telephony and UC&C services based on

BroadSoft's platform in almost every country in the region, and reaching different industry

verticals, such as retail and consumer goods, professional services, manufacturing,

government agencies, and educational institutions. Frost & Sullivan points out that due to

BroadSoft’s steady growth among existing and new customers, the number of service

offerings launched in Latin America under its platform is expected to reach double digits in



2016/2017 to exceed 15 launched offerings in the region using BroadSoft technology.

Enhanced Portfolio

BroadSoft aims to deliver the benefits of UC&C to a wider pool of Latin American

organizations, empowering them to improve productivity, enjoy better internal and

external communications, and increase business agility. Accordingly, in 2016, the

company renewed its portfolio and added several new products to its BroadWorks

platform, such as UC One, Team One, CC One, and BroadSoft Hub. Altogether, BroadSoft's

solutions allow teams to reach new levels of productivity by integrating real-time

communications and collaboration, cloud applications, and contextual intelligence into a

unified end-user experience.

Delivered via the BroadSoft cloud, these new applications offer a distinct value

proposition: UC One is a UC&C suite that includes a cloud PBX, single number dial, HD

voice and video, chat and presence, virtual rooms, screen sharing, and contextual

information; Team One is a team collaboration application (app) that can be fully

integrated with over 50 enterprise apps; CC One is BroadSoft’s cloud contact center

solution with fully integrated omni-channel capabilities, enabling integrated

communications over web, email, chat, voice, and social; while all three products in the

BroadSoft Business suite can pull contextual intelligence from BroadSoft Hub, which gives

users faster predictive access to content and other data.

Powered by BroadSoft

Successfully launching a cloud IP telephony and UC&C service can prove challenging for

most CSPs, which usually require support on multiple fronts such as preparing and

training their sales force, creating and positioning the right message, and developing a

robust go-to-market strategy. BroadSoft understood this need better than any other

technology provider and has launched its Powered by BroadSoft program, which

empowers CSPs with marketing and sales support to improve customer acquisition,

retention, and upselling, while aligning the CSP marketing efforts with different phases of

the buyer’s journey. Additionally, the CSP can leverage the BroadSoft brand attached to

its new services as a way to strengthen the positioning of its service in the market. In

Latin America, there are already six CSPs associated with the Powered by BroadSoft

brand, namely Alestra, C3ntro Telecom, Cable & Wireless Panama, Bestel, Embratel, and

Ikusi.

Expanding Scope to Large Enterprises and Government

BroadSoft boasts an extensive track record of providing technology to CSPs, enjoying

tremendous success in the Latam market. However, during the last few years, the

company has expanded its focus to include large enterprises and government agencies

among its clients, positioning its solution as a hosted private dedicated instance on a



secure carrier-class platform and including its full-stack offering of unified

communications, team collaboration, and analytics tools. Its tailored approach to this new

customer sector complemented by being more cost-competitive than its competitors, led

BroadSoft to win three large deals with government agencies in different countries,

including:

Panama Government: BroadSoft will provide the communications system replacement for all

government entities, with over 30,000 seats over a 3-year period.

São Paulo Government (Brazil): BroadSoft will implement IP telephony systems across 17,000

sites of government departments for the State of São Paulo, including 44,000 hosted seats

and 37,000 business trunking over a 5-year migration period.

Argentina Tax Revenue Offices: BroadSoft will replace the old communications systems of the

400 locations that encompass the tax administration in the country.

Customer Service Experience

BroadSoft provides world-class customer support through its Technical Assistance Centers

(TACs), employing different channels of contact such as phone calls, email, and chat to

meet customers’ various communication preferences when resolving issues. The company

supports all of its customers, services, products, and solutions through its highly trained

engineers, who include product developers as well as veterans from the

telecommunications industry. As a way to consistently improve its solutions and customer

care, BroadSoft regularly moves team members between its support and product areas.

The company’s satisfaction surveys reflect this effort it dedicates to ensuring a positive

customer service experience: four out of five customers state that BroadSoft provides

better support than any other vendor they work with.

Conclusion

BroadSoft is the technology provider of choice in the Latin American cloud IP telephony

and UC&C services market, leading with 36.3% of all active users in the region. The

company’s introduction of industry-leading new products has enlarged its product portfolio

and strengthened its value proposition as a full-fledged UC&C provider. Moreover, through

its Powered by BroadSoft program, the company is helping Latin American organizations

successfully launch services to the market while leveraging BroadSoft´s brand and

marketing resources. Finally, BroadSoft has gained traction and found success in

additional market segments, such as government agencies, across various countries in

Latin America.

With its strong overall performance, BroadSoft has earned Frost & Sullivan’s 2017

Company of the Year Award.



Significance of Company of the Year

To win the Company of the Year Award (i.e., to be recognized as a leader not only in your

industry, but among your non-industry peers as well) requires a company to demonstrate

excellence in growth, innovation, and leadership. This kind of excellence typically

translates into superior performance in three key areas: demand generation, brand

development, and competitive positioning. These areas serve as the foundation of a

company’s future success and prepare it to deliver on the two criteria that define the

Company of the Year Award (Visionary Innovation & Performance and Customer Impact).

Understanding Company of the Year

As discussed above, driving demand, brand strength, and competitive differentiation all

play a critical role in delivering unique value to customers. This three-fold focus, however,

must ideally be complemented by an equally rigorous focus on Visionary Innovation &

Performance to enhance Customer Impact.



Key Benchmarking Criteria

For the Company of the Year Award, Frost & Sullivan analysts independently evaluated

two key factors—Visionary Innovation & Performance and Customer Impact—according to

the criteria identified below.

Visionary Innovation & Performance

Criterion 1: Addressing Unmet Needs

Criterion 2: Visionary Scenarios through Mega Trends

Criterion 3: Implementation Best Practices

Criterion 4: Blue Ocean Strategy

Criterion 5: Financial Performance

Customer Impact

Criterion 1: Price/Performance Value

Criterion 2: Customer Purchase Experience

Criterion 3: Customer Ownership Experience

Criterion 4: Customer Service Experience

Criterion 5: Brand Equity

Best Practices Award Analysis for BroadSoft

Decision Support Scorecard

To support its evaluation of best practices across multiple business performance

categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool

allows our research and consulting teams to objectively analyze performance, according to

the key benchmarking criteria listed in the previous section, and to assign ratings on that

basis. The tool follows a 10-point scale that allows for nuances in performance evaluation.

Ratings guidelines are illustrated below.

RATINGS GUIDELINES

The Decision Support Scorecard is organized by Visionary Innovation & Performance and

Customer Impact (i.e., these are the overarching categories for all 10 benchmarking

criteria; the definitions for each criterion are provided beneath the scorecard.). The

research team confirms the veracity of this weighted scorecard through sensitivity

analysis, which confirms that small changes to the ratings for a specific criterion do not

lead to a significant change in the overall relative rankings of the companies.



The results of this analysis are shown below. To remain unbiased and to protect the

interests of all organizations reviewed, we have chosen to refer to the other key

participants as Competitor 2 and Competitor 3.

Measurement of 1–10 (1 = poor; 10 = excellent)

Company of the Year

Visionary

Innovation &

Performance

Customer

Impact Average Rating

BroadSoft 9.0 10.0 9.5

Competitor 2 9.0 8.0 8.5

Competitor 3 8.0 7.0 7.5


Criterion 1: Addressing Unmet Needs

Requirement: Implementing a robust process to continuously unearth customers’ unmet

or under-served needs, and creating the products or solutions to address them effectively

Criterion 2: Visionary Scenarios through Mega Trends

Requirement: Incorporating long-range, macro-level scenarios into the innovation

strategy, thereby enabling “first-to-market” growth opportunity solutions

Criterion 3: Implementation of Best Practices

Requirement: Best-in-class strategy implementation characterized by processes, tools, or

activities that generate a consistent and repeatable level of success.

Criterion 4: Blue Ocean Strategy

Requirement: Strategic focus on creating a leadership position in a potentially

“uncontested” market space, manifested by stiff barriers to entry for competitors

Criterion 5: Financial Performance

Requirement: Strong overall business performance in terms of revenues, revenue growth,

operating margin, and other key financial metrics

Customer Impact

Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market.

Criterion 2: Customer Purchase Experience

Requirement: Customers feel they are buying the most optimal solution that addresses

both their unique needs and their unique constraints.

Criterion 3: Customer Ownership Experience

Requirement: Customers are proud to own the company’s product or service and have a

positive experience throughout the life of the product or service.



Criterion 4: Customer Service Experience

Requirement: Customer service is accessible, fast, stress-free, and of high quality.

Criterion 5: Brand Equity

Requirement: Customers have a positive view of the brand and exhibit high brand loyalty.

Decision Support Matrix

Once all companies have been evaluated according to the Decision Support Scorecard,

analysts then position the candidates on the matrix shown below, enabling them to

visualize which companies are truly breakthrough and which ones are not yet operating at

best-in-class levels.

High

Low

Low High

Cu

sto

mer I

mp

act


BroadSoft

Competitor 2

Competitor 3



Best Practices Recognition: 10 Steps to Researching,

Identifying, and Recognizing Best Practices

Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and

assess their fit with select best practice criteria. The reputation and integrity of the

Awards are based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

Conduct in-depth industry research

Identify emerging sectors

Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

Interview thought leaders and industry practitioners

Assess candidates’ fit with best-practice criteria

Rank all candidates

Matrix positioning of all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

Confirm best-practice criteria Examine eligibility of all

candidates Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

Brainstorm ranking options Invite multiple perspectives

on candidates’ performance Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

Share findings Strengthen cases for

candidate eligibility Prioritize candidates

Refined list of prioritized Award candidates

6

Conduct global industry review

Build consensus on Award candidates’ eligibility

Hold global team meeting to review all candidates

Pressure-test fit with criteria Confirm inclusion of all

eligible candidates

Final list of eligible Award candidates, representing success stories worldwide

7 Perform quality check

Develop official Award consideration materials

Perform final performance benchmarking activities

Write nominations Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice Award recipient

Review analysis with panel Build consensus Select winner

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform Award recipient of Award recognition

Present Award to the CEO Inspire the organization for

continued success Celebrate the recipient’s

performance

Announcement of Award and plan for how recipient can use the Award to enhance the brand

10 Take strategic action

Upon licensing, company able to share Award news with stakeholders and customers

Coordinate media outreach Design a marketing plan Assess Award’s role in future

strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



The Intersection between 360-Degree Research and Best Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degree research

methodology provides an evaluation

platform for benchmarking industry

participants and for identifying those performing at best-in-class levels.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth

and achieve best-in-class positions in growth, innovation, and leadership. The company's

Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined

research and best practice models to drive the generation, evaluation, and implementation

of powerful growth strategies. Frost & Sullivan leverages more than 50 years of

experience in partnering with Global 1000 companies, emerging businesses, and the

investment community from 45 offices on six continents. To join our Growth Partnership,

please visit http://www.frost.com.

360-DEGREE RESEARCH: SEEING ORDER IN

THE CHAOS

http://www.frost.com/

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