The News: Recently Mitel announced subscription-based models for all flagship platforms in its portfolio in an effort to improve customer flexibility. The new convenient offerings will minimize up-front costs for businesses looking to adopt different communication and collaboration platforms in this new era of hybrid work. Read the full Press Release here.
Mitel Announces Subscription-Based Models for All Flagship Platforms
Analyst Take: Now more than ever, communication and collaboration platforms play an integral role in how organizations operate. With hybrid work here to stay and many organizations looking for new ways to connect employees without spending a lot of money upfront, this move from Mitel makes sense for their customer base and new potential customers.
The Move to Subscription-Based Offerings
Mitel’s announcement yesterday of subscription-based models is another example of how tech companies are responding to our current economic climate to make their offerings more attractive and affordable for customers. And while Mitel is not eliminating its traditional purchasing options, the shift to subscription-based models will likely be welcomed by customers who are also adapting their business operations and needs.
Subscription-based models come with a number of benefits for customers, including more choice, more flexibility, easier scalability, and reduced overhead and upfront costs. For Mitel, the switch will likely increase recurring revenue and potentially drive customer growth — a big plus for the ever-expanding communications company.
Continued Growth for Mitel on the Horizon
Over the last few months, Mitel has had a steady upward growth trajectory. Since its expanded partnership with RingCentral was announced in November, the organization has been hyper-focused on meeting the needs of new and existing customers. Recently the organization hinted at more plans to invest in unified communications products and programs that will continue to aid in customer success. I’m attending Mitel’s Analyst Day 2022 event at this very moment and hearing that very messaging from CEO Tarun Loomba. Meeting customers where they are, serving their needs now and working to help them futureproof against the future is where the company is focused, so it’s no surprise that this was one of the first announcements to meet that criteria. And I’m sure it won’t be the last that we see this year.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
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Shelly Kramer is a Principal Analyst and Founding Partner at Futurum Research. A serial entrepreneur with a technology centric focus, she has worked alongside some of the world’s largest brands to embrace disruption and spur innovation, understand and address the realities of the connected customer, and help navigate the process of digital transformation. She brings 20 years' experience as a brand strategist to her work at Futurum, and has deep experience helping global companies with marketing challenges, GTM strategies, messaging development, and driving strategy and digital transformation for B2B brands across multiple verticals. Shelly's coverage areas include Collaboration/CX/SaaS, platforms, ESG, and Cybersecurity, as well as topics and trends related to the Future of Work, the transformation of the workplace and how people and technology are driving that transformation. A transplanted New Yorker, she has learned to love life in the Midwest, and has firsthand experience that some of the most innovative minds and most successful companies in the world also happen to live in “flyover country.”