Cloud-Based BroadSoft Has Wind, Huge Telecom Carriers, At Its Back
As the tech establishment scrambles to stay relevant to businesses that communicate more and more via the cloud, BroadSoft (BSFT) — a provider of communications solutions for all types of businesses — has faced competition of monstrous proportions.
Over the past year or so, Microsoft (MSFT) expanded Skype For Business to help co-workers hold meetings, do presentations and share information from disparate locations. Microsoft has also put more focus on a service called Cloud PBX, putting much of a company’s phone system out of an office wiring closet and onto an off-premise network. And Cisco (CSCO) has reworked its cloud offerings into a product called Spark.
As those tech giants tried to muscle in on the kinds of businesses that BroadSoft depends on for sales, its shares began selling off in December. But unlike rivals 8×8 (EGHT) or RingCentral(RNG), whose stocks continued their downtrends, BroadSoft shares have recovered. In particular, the company’s strong fourth-quarter results in February put investors at ease.