Lifesize Sees Growth 2 Years After Move to the Cloud, CEO Says
After "two years of pain," transforming the company from a hardware provider to a software app vendor is paying dividends, CEO Craig Malloy says.The enterprise collaboration space is one that is rapidly shifting and changing as established vendors work to adapt to the growing demands for software- and cloud-based offerings from customers who themselves are dealing with everything from an increasingly mobile workforce to the cloud to the proliferation of connected devices. The market continues to consolidate through acquisitions, other companies are mulling their futures, and smaller pure-play cloud vendors and startups are looking to grab share from their larger brethren. And the changes promise to continue as the space continues its ongoing shift to the cloud. Craig Malloy understands what those vendors are going through. Malloy returned to video conferencing vendor Lifesize in 2014, 11 years after founding the company and after a three-year hiatus away from it. He quickly began to remake the vendor, transforming it from a company that sold legacy conference room communications equipment to one that embraces the cloud with a software-as-a-service (SaaS) model. "The world was beginning to change in 2012," the Lifesize CEO told eWEEK. "Everyone was beginning to move to a cloud deployment model."
What followed was what Malloy called "two years of pain." During that time, Lifesize slashed its workforce in half, from 550 employees to 250, and its operating expenses from $142 million to $52 million. The company had to shift more to a recurring revenue model and away from just earning money by selling equipment, and in December 2015, after raising $17.5 million from investors, Lifesize spun out of Logitech, which had bought the company in 2009 for $405 million.