Mitel Makes $540 Million Bid for ShoreTel

By Jeffrey Burt  |  Posted 2014-10-22 Print this article Print
tech business

Mitel is operating in a crowded UC market that is in transition as more focus is put on mobility and the cloud, and that includes competitors like Cisco Systems and Microsoft, as well as Avaya, Alcatel-Lucent and Unify, which is expected to launch its new Ansible platform at the end of the month.

Zeus Kerravala, principal analyst with ZK Research, said he believes the offer for ShoreTel has less to do with consolidating the UC space and more to do with the transition to cloud and mobile. In a post on the No Jitter blog site, Kerravala wrote that there is a need for fewer UC vendors—there is too much supply and not enough demand—but that that it would be best done via attrition and not consolidation.

"Having a few vendors actually go away would create share gains for everyone," Kerravala wrote.

However, ShoreTel officials have been working on creating a single platform that can deliver a single set of features both through the cloud and on-premises solutions.

"To me, this is the value that ShoreTel would bring Mitel," he wrote. "If one believes that hybrid is the future, and if one also believes that ShoreTel's single platform is a differentiator, then the [$540 million] price that Mitel has offered for ShoreTel is an absolute bargain. There'd only be an upside to come for ShoreTel. The single platform makes shifting to a hybrid model simple, it makes application integration easier, and it should enable a better mobile experience."


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