Is It a Win-Win?

RingCentral (and some of their partners) are touting what a win the Mitel deal is for partners, customers, job seekers and workplace. For $650M I guess you HAVE to call it a win, otherwise shareholder lawsuits.

One partner, Erik Bishop of Recon Solutions psoted on LinkedIn: “The recent RingCentral/Mitel partnership gives RingCentral millions of new customers. It puts Mitel customers who are ready to migrate to the cloud in the fast lane. And it also opens up thousands of career opportunities. We’d call that a win-win-win. (Is that a thing? It is now.)”

Does it give RNG new customers? Well, the MiCloud customers are now being registered on the RingCentral portal in order for partners to continue to receive their commissions, so I guess some revenue is being achieved. So technically they are new customers – new billing arrangements anyway.

The MiCloud customers already migrated to cloud as Mitel described it. Granted they are now on a platform that is end of life… But here’s the rub: These customers had the opportunity to buy RNG instead of MiCloud and chose not to. Why would they choose RNG now instead of any of NEC, Intermedia or any of the other UCaaS/CXaaS providers out there?

How does it open up thousands of jobs? Mitel had a huge RIF after this deal (just before Christmas 2021). Net net it probably doesn’t create jobs.

I think a lot of this is hope, smoke and mirrors. It made a splash, which a lot of these partnerships with RNG are. Verizon, AT&T, ALU, et al – 9 in all – and RNG is only growing at 36% YoY. Granted, Vonage is at 8% for UC+CC and 8×8 is at 18%, but RNG has deals with 9 giants that they paid a lot of money for. It is not paying off the way they need it to. Unless it was a stock pump-and-dump plan, then yeah it worked.

In the Mitel deal, RNG gets some revenue and if they can retain or upgrade some of them, great – they get some of that $650M back. If not, it was a gamble that didn’t pay off. Shrug and on to the next one. Not certain calling it a win-win-win right now is honest.

PS Avaya chasing Mitel partners (like HERE) is goofy. Mitel partners could have been selling RNG, ACO or any number of vendors but chose to die on the hill of Mitel. (And Mitel partners can sell RNG now too. Why would they “switch” to Avaya to sell RNG?

Scroll to Top