ShoreTel Cloud Division Realignment Meets UC Needs
ShoreTel Cloud Division Realignment Meets UC Needs by UCStrategies Staff
The former CEO of M5 Networks and cloud chief at ShoreTel is beginning a role with a broader purview as the company shuffles its cloud division leadership.
The chief strategy officer for ShoreTel will be Dan Hoffman, who was previously the president and general manager of the company's Cloud Division. The more recent divisional vice president of revenue, Keith Nealon, will replace Hoffman in leading the cloud business. These changes came into effect last week.
According to Hoffman, “Keith is committed to evolving the cloud division, deepening core values and rituals, strengthening systems and processes, and growing the people that have been at the core of our success.” He added that his new job will “not be finding opportunities; it will be focus.”
Furthermore, Hoffman noted that “it is going to be fun working on ShoreTel's overall strategy. The workplace is changing fundamentally, creating a disruptive need for mobile, cloud and unified communications technologies. We've got all three. There is new thinking about blending service and product offerings. We are strongly positioned with both.”
Last March, M5 Networks was acquired by ShoreTel for the price of $146 million. The M5 business became ShoreTel's cloud division and its hosted communications services were branded ShoreTel Sky. ShoreTel has been on-boarding partners over the last two quarters and seeks to sell cloud-based VoIP and communications services.
In the second fiscal quarter, ShoreTel's Cloud Division was a highlight for the company, bringing in $17.1 million revenue, an increase of nine percent from the first quarter. The company states that the revenue which is recurring is now 35 percent of ShoreTel's pie. During the second quarter, premise-based revenue was $57.5 million, a decline from the previous year by one percent.
In the second quarter which finished on Dec. 31, 2012, ShoreTel reported a total revenue of $74.6 million, an increase from 29 percent of the year-ago quarter. A non-GAAP loss was posted by ShoreTel for the quarter of $2.6 million, and this is contrasted with non-GAAP profit of $1.4 million from the previous year. (CY) Link