About Sangoma Technologies

Sangoma Technologies Corporation (Sangoma) operates as a technology company. On March 28, 2022, the company acquired all of the shares of NetFortris Corporation (the 'NetFortris Acquisition') pursuant to a share purchase agreement (the ''NetFortris Purchase Agreement). The acquisition represented the opportunity to further accelerate Sangoma into the upper echelon of SaaS communications providers, and extends the company's industry leading suite of cloud services with the new MSP capabilities, enabling customers to get more and more of their communications needs met by Sangoma. Sangoma's products and services are used by leading companies throughout the world and in leading UC, PBX, IVR, contact center, carrier networks, and data communication applications worldwide. Sangoma's portfolio of products also enable service providers, enterprises, small to mid-sized businesses ('SMBs'), and original equipment manufacturers ('OEMs') alike to leverage their existing infrastructure for maximum financial return, while still delivering the most advanced applications and services from the latest technologies available. Communications as a Service (CaaS) Portfolio Sangoma is a trusted leader in delivering value-based Communications as a Service solutions for businesses of all sizes. The value-based communications segment includes small businesses to large enterprises who are looking for all the advantages of cloud-based communications at a fair price. Sangoma's Communications as a Service offerings are typically offered with monthly, yearly, or multi-year contracts and include Unified Communications as a Service ('UCaaS'); Trunking as a Service ('TaaS'); Contact Center as a Service ('CCaaS'); Communications Platform as a Service ('CPaaS'); Video Meetings as a Service ('MaaS'); Collaboration as a Service ('Collab aaS'); and Desktop as a Service ('DaaS'). Unified Communications as a Service (UCaaS) Sangoma's UC solutions are business communication systems (PBX's with advanced UC features, such as presence/chat, conferencing, mobility, fax, and more) that can be deployed on-premise or hosted in the Cloud, allowing businesses to select the best option for their needs. Unified Communication systems, because of their mobility features, such as having the business phone number ring on an app on your smartphone and/or desktop and instant messaging capability, enable remote work and work from home much more efficiently. Sangoma's Unified Communication solutions fully integrate with the company's phones, soft clients, and network interoperability products to provide a fully interoperable solution from a single vendor. Cloud-Based Business Phone Solution Sangoma offers its customers full-scale cloud-based Unified Communications solutions. With Sangoma, businesses can get contact center, mobility, softphone, call control, and productivity features included for every user at a reasonable price. Sangoma's hosted phone service delivers the customer experience businesses demand at an affordable price point. Customers can also choose pre-provisioned phones that customers simply plug into their network. On-Premise Business Phone Solution Sangoma also offers the more traditional on-premise UC phone system, for businesses still wanting to deploy their business phone system on premise. Whether deployed on a dedicated appliance or in the customer's virtual environment, Sangoma provides the power and connectivity necessary. IP Deskphones, Headsets and UC Clients: Sangoma provides desktop and softphone collaboration clients that integrate seamlessly with the company's UC solution offerings and deliver UC features (presence, contacts, chat, calling, audio and video conferencing, etc.) from a single application, on any device, at any location. IP Deskphones: Sangoma offers a full line of phones that work with both the company's cloud and on-premise systems that are perfect for every user type, from casual to call center to managers and executives. Sangoma's product line includes entry-level, mid-range, and executive- level phones. All models include HD Voice and plug-and-play deployment. Sangoma's range of IP phones are customized to seamlessly integrate with all of the company's UC Systems and provide zero touch installation, simplified system management, and instant access to a wide range of features. Headsets: Sangoma also offers headsets that either work in conjunction with the desktop phones (by plugging into the phone) or work in conjunction to the company's desktop soft client (by plugging directly into the computer). These headsets enable roaming of up to 325 feet from the phone or desk computer. UC Clients and Softphones: Unified Communication Clients (or softphones) are used to make or receive phone calls with your business phone number and can be used as your main phone or as an extension of your desk phone. They are available as an app on your smartphone or computer. These UC clients have enabled employees to work remote seamlessly by enabling phone calls to customers and other employees as if they were in a physical office. Sangoma offers UC clients with all of the company's Unified Communication / Business phone system product lines. Trunking as a Service SIP trunks deliver Internet-based telephony services to businesses using their existing internet connection, eliminating the need for separate traditional PSTN or digital telecom connections. SIP trunking is fast becoming the technology of choice to interconnect an IP PBX system to a telephone company. The main drivers are cost efficiencies (over fixed lines, such as ISDN or analog lines from incumbent telcos) and end-to-end UC features/transparency. SIP trunking uses already-available broadband connections at customer premises. Sangoma offers both retail and wholesale SIP Trunking, which allows the company's customers to choose the service that best meets their needs. Either service offers DIDs and number porting. Retail SIP Trunking Retail SIP trunking offers predictable monthly expenses with pricing based per trunk. SIPStation, Sangoma's retail SIP trunking service, is seamlessly integrated into the company's various UC platforms, making it easy to get up and running. It also includes an integrated fax service option, enabling a business to send and receive faxes from a web interface or from a local fax machine. Typically, SMBs and enterprises would utilize this type of service. Wholesale SIP Trunking Sangoma's wholesale SIP trunking offer is now available following the acquisition of VoIP Innovations. Pricing for wholesale SIP trunking is usage-based but with a larger monthly minimum commitment. This includes origination, termination, SMS/MMS, e911, and fraud mitigation. Typically, very large businesses or service providers who resell SIP trunks would utilize this type of service. Fax as a Service Sangoma's FoIP service, FaxStation, is a hosted service to remedy this problem, available with the company's TaaS. It features a telecom appliance with up to four analog connections for fax machines and operates in concert with Sangoma's fax server data center to encrypt and package the fax communication to make it fail-safe. This is particularly useful for small businesses that rely on fax communications but also for industries with challenging network conditions, such as mining, oil rigs, and ship-to-shore over satellite. Contact Center as a Service CCaaS is the company's cloud-based contact center, or customer experience, offering. It provides robust contact center capabilities running in various ways: either standalone, in conjunction with the company's other cloud services (such as UCaaS), or integrated 'inside' the company's UCaaS product in a simplified version. This latter solution is intended for 'departmental' type usage, by companies that are not pure-play contact centers, but that might have a department, such as customer service or technical support that operate inside that company almost like a mini contact center. Communications Platform as a Service CPaaS allows developers to easily build services and applications using real-time communication features, such as voice, video, chat, and SMS, via the cloud. The company's platform enables Sangoma, the company's integrator/developer partners, and advanced customers to build new communications services based on voice, rest APIs, WebRTC, and SMS. When running an application on a CPaaS platform, performance is critical. To ensure peak performance, Sangoma offers its own SIP trunking service, providing optimized connectivity in addition to easy access to phone numbers. Sangoma also sells a series of 'applications' (or Apps) based upon the company's CPaaS product that customers can purchase. Video Meetings as a Service Sangoma Meet is the company's video meetings, cloud-based service accessible from any device, be it desktop or mobile. It enables file sharing on screen so collaboration with co-workers is enhanced, integrates seamlessly with your calendar, and enables PSTN phone calls. Sangoma Meet is available in free and chargeable tiers. Collaboration as a Service Collab aaS is Sangoma's cloud-based offering for enabling people to work together more productively. This service is called TeamHub. It allows users to interact using any of the various forms of communications, including chatting, calling, and video. TeamHub integrates Sangoma's softphone client software applications (desktop and mobile) and is designed to allow communications to start in one mode (such as chat), and move through different modes very elegantly, in effect 'upgrading' that mode of communications to a voice call in real time, and/or upgrading that voice call to a video meeting. Desktop as a Service Sangoma's Desktop as a Service helps companies adapt to today's modern, flexible, and remote workforce. It is the most secure method for staff to access their tools and applications from any location to do their work, delivers simplified IT administration and cuts down on the CapEx of deploying PCs. Sangoma is one of the only companies that can offer communications capability inside a DaaS product. MSP Portfolio Sangoma's cloud-based Managed Service Provider ('MSP') offerings deliver mission critical communication services that businesses need and complement the company's full line of Communications as a Service solutions. The MSP product line is built upon a tightly integrated, enterprise grade, and end-to-end managed network, which is all supported by an expert 24/7 network engineering team. The MSP offering includes three primary services: Managed Security: Sangoma provides a cloud-based service, sometimes called Unified Threat Management ('UTM'), whereby the customers network, including voice and data traffic, are secured by intrusion prevention and detection capabilities. The network security service helps protect customers against attacks and data losses from spam, viruses, ransomware, botnets, etc. Managed SD-WAN: Sangoma offers a cloud-based software-defined approach to managing a customer's wide area network. The SD- WAN service enables network redundancy through the ability to manage multiple internet connections from multiple providers, which is seen as one seamless connection for the customer. If one connection fails, the customer does not lose connectivity and has uninterrupted uptime. The service also provides traffic shaping whereby certain types of traffic can be given priority or forced in priority. Managed Access: Sangoma also provides a robust broadband connectivity solution, including network monitoring, analytics, backup, and a fully PCI-compliant offering for payment card and credit card transactions. Additionally, the company's Managed Access solution integrates with Managed Security and Managed SD-WAN services, delivering unique capabilities, such as secure, end-to-end peering connections to critical destinations (such as Public Cloud sites like AWS and Azure) and Quality of Service commitments. Network Interconnection Products In addition to the CaaS and MSP offerings described above, Sangoma offers network interconnection products. These products connect different types of networks together, such as VoIP networks to PSTN networks, or VoIP networks to mobile networks or different types of VoIP networks. Session Border Controllers (SBCs) Sangoma's SBCs are available as hardware appliances, as software-only solutions running on a virtual machine in hosted environments, or as a hybrid of both. The hybrid solution is unique to Sangoma and provides all the flexibility expected from virtual machine capability coupled with the scalability that is found in hardware-based solutions. Sangoma's SBCs have broad interoperability certifications. VoIP Gateways VoIP gateways are needed any time voice traffic moves from a VoIP network to a traditional PSTN telephone network. As the traffic traverses these networks, there are issues that need to be resolved regarding both the media (the sound of the caller's voice) and the signaling (the method used to control the media traveling over that connection). All Sangoma's gateways have broad interoperability certifications. PSTN Interface and Media Processing Boards Sangoma's complete line of boards connect and interface to the PSTN. Even though IP networks are growing and quickly becoming the standard, the PSTN still exists, and new communication solutions often need to connect to the PSTN. These boards are primarily used by communications solution developers in PC/Server based telecommunications systems that connect to the PSTN. They perform a very similar task to VoIP gateways, but are installed inside the server rather than being stand-alone devices. By providing customers with the option of using a PSTN interface board or a VoIP gateway, Sangoma maximizes flexibility based on installation requirements, particularly when space and power are at a premium. They may also be used in harsh conditions that require ruggedized servers. Open-Source Software Products Asterisk and FreePBX Sangoma is the primary developer and sponsor of the Asterisk project, the world's most widely used open-source communications software, and the FreePBX project, the world's most widely used open-source PBX software. Sangoma also offers revenue-generating products and services, beyond the open-source Asterisk or FreePBX software, to users of these open-source software projects. The types of products and services Sangoma offers includes software add-ons to Asterisk or FreePBX, IP phones, SIP trunking, cloud-based fax, training, technical support, maintenance, PSTN cards, VoIP gateways, session border controllers, and commercial/hardened versions of the PBX/UC software. Customer Base The company has over 35,000 customers, which include distributors, resellers, enterprises, OEM manufactures, service providers and end users (ranging from small businesses to larger enterprises). The company sells into over 150 countries around the globe, broken down geographically into the two (2) primary regions of North America and International. The company typically sells to large customers (including OEMs and carriers) using a direct sales model and to SMBs through a global network of distributors and resellers/integrators, as further described below. Sales and Marketing The company markets its services and solutions to both partners and end users. The company employs a variety of means for generating leads, including but not limited to search engine marketing and optimization, online display advertising, content gating, attending tradeshow and conference events, conducting road shows across the globe, partnering with third parties, hosting webinars, and targeting specific geographic areas for local marketing. The company utilizes a sophisticated system for acquiring and nurturing leads that allows the company to track its efforts and fine tune the company's strategies for moving prospects through the buying cycle. The company's products and services are sold both through its extensive channel network, made up of resellers, distributors, and master agents and to the company's direct customers as well. The company provides its partners with a host of sales and marketing resources to help them effectively sell, implement, and support Sangoma solutions. Additionally, the company employs salespeople in each geographic region to provide added support and product knowledge to the company's partners and customers. As the company expands its global network, the company focuses on recruiting partners who expand the company's coverage area to bring Sangoma solutions to new locations around the globe. In addition, VoIP Supply, LLC, which the company acquired in in July 2017, offers a unique marketing and sales channel that the company leverages, including an efficient ecommerce transaction business, backed by a professional inside sales organization, and tailored marketing programs to attract and drive traffic to the website. Research and Development (R&D) The company incurred $37.47 million in R&D costs for the year ended June 30, 2023 (Fiscal 2023). Foreign Operations Approximately 95% of the company's revenue in Fiscal 2023 was generated from the company's North American operations (1% from Canada) and 5% of the company's revenue from International operations. Competition Competitors for the company's Cloud enterprise communication solutions include hosted and Cloud services providers, such as RingCentral, Inc., Cisco Systems, Inc. (which acquired Broadsoft, Inc.) 8X8, Inc., Mitel Networks Corp., Microsoft Teams, Jive/LogMeIn, Nextiva, Dialpad, Avaya Inc., and Vonage Holdings Corp., as well as other hosted PBX providers. Competitors for the company's TaaS offering include Bandwidth.com, Telnyx, Flowroute, ThinQ, and Peerless, amongst others. The company competes against many traditional communications vendors, including Avaya Inc., Cisco Systems, Inc., Mitel Networks Corp., 3CX and Panasonic Corporation, as well as other On-premise providers. The company also competes with software vendors who, in recent years, have expanded their offerings to address portions of this UC market. This group of competitors includes Microsoft Corporation (via Skype), Google LLC, and Slack. Competitors for the company's IP-Phone solutions include Poly Inc., VTech Holdings Limited, and Yealink Inc. Competitors for the company's network connectivity solutions include AudioCodes Ltd., Oracle (via their acquisition of Acme Packet) and Ribbon Communications Inc. History Sangoma Technologies Corporation was founded in 1984.