Experiencing Growing Pains, 8x8 is on the Move
Experiencing Growing Pains, 8x8 is on the Move by UCStrategies Staff
Helping the world’s small- to medium-sized businesses move to virtual cloud-based services is a physically demanding business. After only three years at its Sunnyvale location, 8x8, a leading service provider of cloud communications, is doubling its square footage at its new 105,000 square foot San Jose facility. Favored for its cost-effective, scalable cloud-based services, 8x8 has experienced rapid growth, expanding its customer base from 17,000 in mid-2009 to over 30,000 businesses today.
Driving 8x8’s growth is demand for its cloud-based unified communications (UC) solutions. The ability to add new value-added services is a key growth frontier for service providers. Cloud-based UC provides flexibility and scalability to accommodate pay-per-use models with minimum capital expenditures and low hosting costs. It is an evolving service model that keeps adding value as it leverages integration across the Internet, social media and enterprise systems to help companies improve their functionality.
Cloud-based unified communication services are forecasted to grow at a compound annual growth rate of 9.1 percent between 2011 and 2018, according to Frost & Sullivan. One of the most innovative and cost competitive providers of cloud services, 8x8 was recognized by Frost & Sullivan as the leading provider of IP Telephony and Unified Communication services in North America in 2011.
“We never anticipated that we would outgrow our former headquarters in only three years,” said 8×8 Chairman & CEO Bryan Martin, “especially since that facility was only a little over half full when we moved in. The success 8×8 has experienced reflects the value our customers derive from our services and the growing demand we continue to see from SMBs that want to reap the benefits of next generation cloud-based technologies.” Those satisfied customers have driven 30 percent average annual growth in revenue for 8x8, which has annual revenues in the $100 million range.
The San Jose facility will host all corporate staff and the network operations center, as well as provide room for future growth. It also serves marketing and business development functions. On October 26, 8x8 will host the Telecom Council of Silicon Valley’s monthly Service Provider Innovation Forum, where the industry will explore business development, R&D and investment opportunities. No doubt, 8x8’s customers and competitors will be in attendance seeking a competitive advantage. Sprint, Comcast and Mitel are among the service providers that have recently announced cloud-based UC services. As these service providers add new services to compete, 8x8 will be competing with Cisco, IBM and others to provide the lowest total cost of ownership on the cloud. (CL) Link