Sangoma Technologies Corporation $STC.TO $SANG- Deep Dive Research Report # 24
Sangoma Technologies: Strategic Transformation and Attractive Valuation Amid Core Platform Focus
Business Overview:
Sangoma is a company that provides business communication tools, like phone systems and messaging platforms, to help companies stay connected. Their solutions include things like:
UCaaS (Cloud-Based Business Phone Solution) – Sangoma’s intuitive cloud solutions seamlessly integrate voice, video, messaging, and call center capabilities into a single platform, enhancing productivity and streamlining operations at a fraction of the cost. Experience true white-glove support.
Sangoma’s hybrid UCaaS is powered by its unique cloud architecture, which includes on-premises StarBox® appliance and cloud-based network backbone components. This blend of cloud and on premises ensures unparalleled scalability, flexibility, and reliability for your business communications. It provides local survivability, multiple failover options (4G LTE / POTS lines) and multi-location flexibility.
Sangoma UC Prem: Sangoma also offers the more traditional on-premise UC phone system, giving administrators complete control over updates and integrations, to deploy their business phone system on-premises. Whether deployed on a dedicated appliance or in the customer’s virtual environment, Sangoma provides the power and connectivity customers and partners can trust.
IP DeskPhone, headsets, UC Clients and Softphones: Sangoma offers a variety of IP deskphones and headsets for both cloud and on-premise systems, featuring HD Voice and seamless integration with UC systems. Their headsets support connectivity with phones or computers and allow roaming up to 325 feet. Additionally, Sangoma provides UC Clients and Softphones for making business calls via smartphone or computer, functioning as a primary phone or desk phone extension.
CCaaS (Contact Center as a Service) – Sangoma CX is a cloud-based Contact Center as a Service (CCaaS) solution that enhances customer experience by integrating with UCaaS offerings. It enables businesses to manage inbound interactions across various channels and supports outbound call campaigns. With features like end-to-end encryption, AI automation, and an intuitive interface, it streamlines contact center operations for higher agent productivity and improved customer experience.
CPaaS (Communications Platform as a Service) – Sangoma CPaaS allows developers to create applications with real-time communication features like voice, video, chat, and SMS via the cloud. Sangoma provides a platform for developers and customers to build communication services using voice, APIs, WebRTC, and SMS. To ensure optimal performance, Sangoma offers its own SIP trunking service and sells communication apps based on their CPaaS product.
MSP Portfolio: Sangoma’s cloud-based Managed Service Provider (MSP) offerings deliver essential communication services that businesses rely on, enhancing its comprehensive suite of Communications as a Service solutions. This MSP product line is founded on a seamlessly integrated, enterprise-grade, end-to-end managed network, all backed by a dedicated 24/7 team of expert network engineers.The current MSP offering includes: SD-WAN, Internet, VPN, 5G, and WiFi access points. Sangoma also provides Managed Security solutions, which include anti-spam & antivirus, VPN, content filtering, data protection, and interaction detection.
Sangoma Communication Solutions: Tailored Platforms for Diverse Business Needs:
Communication Platform – This is the backbone of business communications, allowing companies to make calls, send messages, and manage communication systems easily.
Customer: A mid-sized law firm
Use Case: A law firm adopts Sangoma’s platform to handle all client communications, ensuring secure and recorded phone conversations while integrating with their case management software.
Testimonial: "We needed a reliable and secure way to communicate with clients. Sangoma’s platform seamlessly integrates with our CRM, making call tracking and management effortless."
Competitors: RingCentral, 8x8, Cisco Unified Communications, Mitel, etc. These companies offer platforms that integrate voice, messaging, and video communication into a single system.
Cloud (Cloud-based Communication Solutions): – Instead of having phone systems and software installed in an office, businesses can use Sangoma’s internet-based services to handle all their communication needs remotely.
Customer: A growing e-commerce company
Use Case: An online store with remote customer support teams uses Sangoma’s cloud-based phone system to enable seamless customer interactions from anywhere.
Testimonial: "With our team spread across different cities, Sangoma’s cloud solution allowed us to maintain high-quality customer service without needing on-site hardware
Competitors: Zoom Phone, Microsoft Teams, Dialpad, Vonage Business etc. These companies provide cloud-hosted phone and communication services that eliminate the need for traditional hardware.
Hybrid – A mix of both cloud-based and on-site solutions, giving businesses flexibility by combining the benefits of cloud technology with traditional phone systems.
Customer: A regional hospital
Use Case: A hospital maintains on-premise phone systems for emergency communications while using cloud-based collaboration tools for administrative staff.
Testimonial: "We needed the reliability of an on-site system but also wanted cloud flexibility. Sangoma’s hybrid solution was the perfect fit."
Competitors: Mitel MiVoice, Avaya, Cisco Hybrid Solutions, NEC Unified Communications. Hybrid solutions appeal to businesses needing both cloud and on-site systems for security or compliance reasons.
On-Premise – This means the company installs and manages its own phone systems and communication tools within its office, rather than using cloud-based services
Customer: A financial institution
Use Case: A bank requires strict control over data and security, so they implement an on-premise PBX system to manage internal and customer communications securely.
Testimonial: "With Sangoma’s on-premise solution, we have full control over our communication network, ensuring compliance with strict banking regulations."
Competitors: Cisco Unified Communications Manager, Panasonic PBX, Mitel MiVoice Business, Avaya IP Office. These companies provide in-office phone systems for businesses that prefer having full control over their communications infrastructure.
Business Collaboration – Tools that help employees work together effectively, whether through messaging, file sharing, or other communication methods.
Customer: A national real estate agency
Use Case: Realtors use Sangoma’s business collaboration tools to share property listings, schedule meetings, and communicate with clients more effectively.
Testimonial: "We’ve cut down on miscommunication and improved deal closures thanks to better collaboration between agents and clients."
Competitors: Microsoft Team, Slack, Cisco Webex, Google Workspace. These platforms enable employees to communicate, share files, and collaborate in real time.
Team Collaboration – Similar to business collaboration but more focused on internal teams working together through chat, document sharing, and project management tools.
Customer: A software development company
Use Case: Developers use Sangoma’s messaging and video tools to collaborate across different time zones.
Testimonial: "Sangoma’s team collaboration tools allow our global teams to work as if they’re in the same room, keeping projects on track."
Competitors: Slack, Monday.com, Asana, Microsoft Teams. These solutions help teams coordinate projects, manage tasks, and communicate efficiently.
Video Conferencing – Software and tools that allow businesses to hold video meetings, similar to Zoom or Microsoft Teams.
Customer: A marketing agency
Use Case: The agency holds client meetings, pitches, and brainstorming sessions via Sangoma’s secure video conferencing platform.
Testimonial: "We no longer rely on third-party apps. Sangoma’s video conferencing integrates directly with our systems, making meetings smoother."
Competitors: Zoom, Microsoft Teams, GoogleMeet, Cisco Webex. These are widely used for virtual meetings, webinars, and remote work collaboration.
Contact Center as a Service (CCaaS) – A cloud-based customer service solution where businesses can set up call centers without having to buy expensive equipment.
Customer: An online retail company
Use Case: The business uses CCaaS to manage high call volumes efficiently, routing customers to the right agents and reducing wait times.
Testimonial: "Our customer support team became more efficient overnight, and our satisfaction ratings have never been higher.
Competitors: Five9, Genesys Cloud, NICE CXone, Twilio Flex. These platforms offer cloud-based call center solutions for handling customer service and support.
Productivity Apps – Applications that help businesses improve efficiency, such as scheduling, automation, and task management tools.
Customer: A consulting firm
Use Case: Consultants use task automation, appointment scheduling, and note-taking apps to streamline operations.
Testimonial: "We’ve saved hours every week using Sangoma’s productivity tools to automate scheduling and reminders."
Competitors: Microsoft365, Googleworkspace, Notion, Trello. These tools improve workplace efficiency by automating tasks and streamlining workflows.
Phones & Hardware (IP Phones & Business Communication Devices) – Physical desk phones, headsets, and other communication devices businesses use for calling and conferencing.
Customer: A hotel chain
Use Case: Hotels install Sangoma’s IP phones in guest rooms and at the front desk for seamless communication.
Testimonial: "The phones are easy to use, and the system is cost-effective while delivering great quality."
Competitors: Poly(formerly Polycom), Yealink, Cisco IP Phones, Grandstream. These companies manufacture IP desk phones, conference phones, and related hardware.
Managed Security – Security services that protect business communication systems from hackers and cyber threats.
Customer: A healthcare clinic
Use Case: The clinic protects sensitive patient data by using Sangoma’s cybersecurity solutions to prevent hacking attempts.
Testimonial: "Security is critical in healthcare. Sangoma gives us peace of mind that our patient data is safe from cyber threats."
Competitors: Fortinet, Palo Alto Networks, Cisco Security, Sophos, CrowdStrike. These cybersecurity firms help businesses protect their communication networks from threats.
Managed Network & Connectivity – Ensuring businesses have a stable and secure internet connection to run their communication systems smoothly.
Customer: A logistics company
Use Case: The company ensures a reliable network connection for its fleet communication, keeping operations running smoothly.
Testimonial: "We need a stable connection for real-time tracking. Sangoma’s managed network services ensure we’re always connected."
Competitors: Cisco Meraki, Ubiquiti Networks, Juniper Networks, Fortinet SD-WAN. These providers offer network management and connectivity services to ensure smooth business operations.
Open Source – Free, customizable software solutions for businesses that want more control over their communication systems
Customer: A tech startup
Use Case: A startup customizes its own VoIP (voice-over-IP) system using Sangoma’s open-source software to reduce costs.
Testimonial: "Sangoma’s open-source solution allowed us to build a customized communication system without breaking the bank."
Competitors: Asterisk (also owned by Sangoma), FreePBX (also owned by Sangoma), Kamailio, FreeSWITCH. These open-source platforms allow businesses to customize their own VoIP and PBX (Private Branch Exchange) solutions.
Carrier SIP Trunking Services – A modern way for businesses to make phone calls over the internet instead of traditional phone lines, helping reduce costs.
Customer: A multinational corporation
Use Case: The company switches from traditional phone lines to SIP trunking, reducing call costs and improving flexibility.
Testimonial: "Our call costs dropped significantly after switching to Sangoma’s SIP trunking. The voice quality is also excellent!"
Competitors: Twilio, Bandwith, Vonage SIP Trucking, Verizon Business VoIP. These companies offer SIP trunking services that let businesses make phone calls over the internet instead of traditional phone lines.
Innovative, Integrated Communication Solutions for Businesses of All Sizes:
Sangoma focuses on companies across the SMB (Small to Medium Business), mid-market, and enterprise spaces. The company offers cloud-based communication solutions that provide businesses with advanced features, flexibility, and scalability at a competitive price.
Key Differentiators:
• Comprehensive Service Offering: Sangoma has successfully positioned itself as a one-stop-shop for businesses seeking an integrated communication solution. Their product portfolio spans VoIP (Voice over Internet Protocol), cloud-based PBX (Private Branch Exchange) systems, video conferencing, unified communications, and more.
• Fully Integrated Experience: By offering an end-to-end solution, Sangoma ensures that its customers benefit from a seamless and efficient experience—from installation and setup to ongoing support and maintenance.
• Support and Cost Savings: Sangoma stands out by providing its customers with not only cutting-edge technology but also exceptional customer service. Their customer-centric approach helps businesses reduce operational costs, improve efficiency, and maximize their return on investment.
Financial Key Performance Indicators:
Historical Financial Analysis, F25 and F26 Forecast, Valuation vs. Peers and My Investment Decision: