Public Telco Software Provider Makes a Run

Admittedly, I was skeptical when telecommunications software firm BroadSoft filed an initial public offering just over a year ago.

I’ve done business with the company, and Strategic Communications Group (Strategic) developed the initial concept and editorial strategy for BroadSoft’s corporate blog, themed “Broadband Ignite.”  It’s a good company populated with talented professionals.

My skepticism was based on two fundamental (and related) concerns about their business: 1) although they are a dominant provider, BroadSoft’s market (telecommunications carriers) is relatively defined and niche, and 2) as a result, they would have difficulty dramatically scaling their revenue to meet investor expectations.

I sure was wrong about BroadSoft’s prospects in the public markets.  After languishing a bit after its IPO, the stock went on a run jumping from $7 to more than $50 a share.  It currently rests in the mid-30s.

Jim Tholen, BroadSoft

Last week, I attended a presentation from BroadSoft’s CFO Jim Tholen to the Association for Corporate Growth’s (ACG)National Capital Chapter.  Here are a couple of quotes from Jim that resonated with the audience:

--It’s important to play offense even in tough times.

--There is still magic in being a US, venture-backed technology company.

--VoIP is no longer a science experiment by Vonage.  It’s the technical path of choice by most telecommunications providers.

--Entrepreneurial organizations are defined by never being satisfied.  We break the safety of success.

--We have an acquisition strategy, rather than a strategy around acquisitions.

Social Business Gem

At Strategic Communications Group (Strategic), we are fortunate to work with a set of bright, savvy and experienced clients. For me, they serve as a wonderful resource and sounding board as we develop best practices and continually refine our methodology for the delivery of social media and digital communications services.

For instance, Keith Hodson at Microsoft helped me define each of the three phases of social media maturation based on our experience working together. BroadSoft’s marketing team of Leslie Ferry and Kristin Martell have played a lead role in the creation of BroadBand Ignite, an innovative application of social media designed to support corporate positioning and leadership.

Let’s add Monster’s Janet Swaysland and Erica Pierson to our fraternity of sharp clients.

During a phone call this past week to talk through a soon-to-launch campaign we got into a discussion about Strategic’s approach to social media with its emphasis on lead generation, enterprise sales support, deal capture and SEO. Swaysland offered up this gem:

“It’s not really social media. Your focus is on social business.”

Wow…that’s good. Although a bit conceptual, social business is spot on with our belief that commerce – as measured by sales, profitability and valuation – is the driver of business accomplishment. Any activity that fails to contribute to these benchmarks in a measurable way is a cost subject to streamlined, outsourced or cut.

I’ll gauge the reaction to social business in the coming weeks through conversations with clients and prospects. I will be sure to share their thoughts.

Here are links to a few of “best of” blog posts that overview applications of social business:

Will Premium Content Cross the Last Mile

Social Media and Enterprise Sales Acceleration

Competitive Intel and the Social Media Footprint

Hope and the PR Hop