Fonality Becomes a Cloud Communications Company

One of the key characteristics of the VoIP business is competition between dissimilar companies with vastly different business models and logic. A leading example, though far from the only one, is the competition between premises IP PBX vendors and hosted VoIP providers. Their products are very different – one is hardware, one is a service. But they are trying to sell them to the exact same customers: SMBs (small to medium-size businesses) looking for advanced telephony features. Open-source IP PBX maker Fonality from the start focused on the vendor approach, but its unique hybrid hosted architecture also put it partly in the services camp. Now, in a remarkable transformation, it has become solely a cloud communications provider, though with a crucial hardware component.

Fonality's new approach aims to offer SMBs the best elements of the premises and hosted models. Like hosted providers, it offers service on a per user/per feature basis for monthly fees. That means its customers need make no upfront expenditures as they would if they took the premises approach. Fonality even supplies the phones. But the features it offers are the kind usually available only with expensive premises gear. They include everything from call center functionality to CRM integration to unified communications. And Fonality can turn features on and off for individuals or small groups of users almost instantly.

The hybrid hosted architecture plays a key role in making this possible. It allows Fonality to physically locate IP PBXes anywhere. Management is in the "cloud," and thus accessible from anywhere via secure Internet connections, so administrators needn't be sitting at terminals physically connected to the IP PBX. That means Fonality can deliver services over the Internet from IP PBXes sitting in its data center like hosted providers. But it can also deliver them from IP PBXes located at the customer's office.

Each variation has its advantages depending on circumstances. Putting an IP PBX on the company's premises means, for example, the customer can have calls delivered over the PSTN, which lessens the load on its Internet connections. It also lets the customer retain physical control over its call and profile data for a feeling of security. Delivering services from Fonality's data center, on the other hand, means there's no need to worry about fire or other disasters at the customer's premises putting critical voice communication capabilities out of commission for a lengthy period. It also means there's no need to install or maintain two sets of communication providers and wiring, since both voice and data traffic will travel over Internet and LAN connections. Fonality will provide the approach that best suits the requirements of each customer.

Fonality's cloud services come in three flavors. Its Connect service targets companies of fewer than 20 employees. It offers standard sets of features and a no-contract pay-as-you-go option. The Professional service is for companies of under 50 employees. It provides, among other things, increased customization to meet the needs of more specialized business users such as sales and support agents. The Enterprise product aims at the needs of larger companies, with the most customization, sophisticated functions and comprehensive support options. Fonality offers discounts and other incentives for customers willing to commit to longer contracts length and/or prepayment. All services come with a money-back guarantee.

Comments

[Scott Morris]

Robert,

Great article...one of the best I've read on VoIP. There were a couple things that stood out to me:

1. That there is a difference between hosted and on-prem systems. (though i understand the article to pointing towards fonality closing that gap) Have you done any writing on what those differences are?

2. In looking at the fonality offering, have you done any research that compares their feature set with any of the asterisk/digium products that are out?

I'll definitely begin looking through your archives - thank you for the research and work you've been doing...it is really helpful.

[George Pal]

Congratulations to Fonality. The company continuously grows bigger and bigger. Although there are other competitive companies out there they remain standing and still maintain their status.