RingCentral founder and CEO Vlad Shmunis has blasted rivals Cisco, Avaya and Mitel, declaring that "the world is simply ready to move away from on-prem, legacy systems".
Speaking at RingCentral's customer event, ConnectCentral, in San Francisco, CA yesterday, Shmunis said: "If you look at our growth, and you look at the growth - or negative growth - of the legacy providers… Folks like Cisco, folks like Avaya are in decline, and cloud is here to stay."
The CEO dismissed Cisco's announcement yesterday that it was integrating Webex with its BroadCloud Calling phone system - a result of its $1.9 billion acquisition of BroadSoft earlier this year.
Shmunis said of the acquisition, "they were both fine products for their time, but you take two anchors, you tie them together, and maybe you float, maybe you don't."
He continued: "Cisco is a fine company; it's a world class organization and is known as the leading provider of business communications. The issue is that their technology - and the problem they're trying to address - is not in this century. It is a 1990s problem - that is people going to work and sitting behind their desks.
"Maybe the 1990s is being too charitable," he joked.
"The current reality is that organizations are distributed, most businesses are running from many locations, come internationally, people are mobile or work from home. For that you need a cloud-based, multi-tenant, single architecture global platform."
The company cited Gartner, which estimates that "By 2021, 90 percent of IT leaders will not purchase new premises-based UC infrastructure — up from 50 percent today — because future cloud UC offerings will be far ahead in terms of features, functions, portals, analytics and dashboards".
Shmunis claimed that the future of the industry is clear, saying "Legacy is dead, long live the cloud".
"That's the future… We're seeing major legacy providers - Cisco, Avaya, Mitel - they do not have a born-in-the-cloud offering. You cannot replace Cisco with a Cisco cloud. They cannot do that today. Avaya can't. Mitel can't. Microsoft can't. We can."
He added that RingCentral's future growth strategy is to "get more customers, more channel partners, [which] are extremely important to our go to market, and make RingCentral a household word".
According to RingCentral's Q318 results that it announced last week, the firm's total revenue increased 33 percent year over year to $174 million, with enterprise annualized exit monthly recurring subscriptions increasing more than 100 percent year over year to $146 million, reflecting its current focus on winning larger customers.
"Our mid-market and enterprise businesses continue to lead the way, supported by momentum from our channel partners," said Shmunis, on the results, adding that the firm was "well positioned to achieve our goal of exceeding $1 billion in revenue in 2020".
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