BroadSoft (News - Alert) has announced compliance with the 3GPP Multimedia Telephony standard and launched BroadSoft Xtended, an initiative to open its functionality to makers of Web-based and productivity applications. At the same time, BroadSoft has created a developer program

 

The trio of moves might be viewed in several ways. Most significantly, they reflect BroadSoft’s belief that the next wave of growth will come from mobile applications and integration of core communications capabilities with all manner of Web and enterprise applications.

 

At some level, the moves also signal that the significance of hosted communications is not limited to replacing legacy Centrex or phone systems, but is part of a larger move towards more sophisticated communications capabilities for many, if not most, Web and enterprise applications.

 

“The full-blown developers program and an online marketplace will enable service providers and end users to download applications that integrate BroadWorks with a wide range of productivity, personal, and social applications,” says Joe McGarvey, Current Analysis (News - Alert) principal analyst.

 

While the transformation of services to IP presents opportunity for BroadSoft, it also creates challenges. The company is well-recognized as a leading provider of enhanced VoIP applications, but its application suite is also considered by some service providers to be overkill for residential services, explains McGarvey.

 

At the low end of the application server market, BroadSoft faces significant challenges from traditional telecommunications equipment makers, like Alcatel-Lucent, Thomson/Cirpack, MetaSwitch (News - Alert), and Sonus, among others.

 

McGarvey says it will be important for BroadSoft to capture the middle ground of the application server market, where service providers are looking for some enhanced features, but do not require the complexity of applications associated with PBX replacement.

 

To be successful in this space, it is more important for BroadSoft to move down the complexity curve than it is for challengers to move up, McGarvey says. To be sure, BroadSoft now finds itself challenged by a new set of competitors, including softswitch providers, which have been gradually increasing the breadth and sophistication of their Class 5 application offerings.

 

Ultimately, market success might not be as dependent on unique features as on the ability to make those features available widely on mobile, Web, and enterprise applications.