SunRocket shuttered; 8x8 named as 'preferred' replacement

Convergence & VoIP This newsletter is sponsored by Netpro Active Directory real-time monitoring, auditing and reporting on all critical changes Auditing Active Directory plays a crucial role in operational, troubleshooting and security issues. However, the tools in Windows Server can be limited and difficult to use in creating a cohesive change management and audit process. In this whitepaper, you'll learn how to manage and protect your Windows infrastructure with fast and easy methods to audit changes, troubleshoot, restore and report within Active Directory. Also, find out what areas of Active Directory you should be auditing to support security policies and regulatory compliance. Network World's Convergence & VoIP Newsletter, 07/23/07 SunRocket shuttered; 8x8 named as ‘preferred’ replacement By Steve Taylor and Larry Hettick On Monday last week, SunRocket abruptly ceased business operations leaving more than 200,000 VoIP customers without service. The company had already laid off about a quarter of its work force two weeks before it closed the doors. SunRocket started offering services in November 2004 and had secured $80 million in venture capital funding since beginning operations. By Wednesday, 8x8, the provider of Packet8 residential VoIP, business VoIP, and video services, announced in a statement that it had signed an agreement with “an organization managing the wind down of SunRocket … to present SunRocket subscribers with a specially-priced offer to transition their Internet phone service to Packet8.” SunRocket customers who convert to Packet8 service can buy a similarly priced annual unlimited calling plan without any start-up costs, retain their existing phone number with an abbreviated local number portability process arranged by 8x8, and receive a month of free service. The organization managing the customer transition for SunRocket has agreed to notify customers about the arrangement. Optimize Your WAN: Network World Shows You How In this Executive Guide learn how optimization can supercharge your WAN. Click Here 8x8 has offered residential VoIP service over the Internet for nearly five years, with about 100,000 residential and 8,000 U.S. businesses. According to Huw Rees, 8x8’s vice president of sales and marketing, SunRocket had and still uses Level 3 and Global Crossing as CLECs to provide phone numbers and PSTN gateway connectivity. 8x8 is working with Level3 and Global Crossing to abbreviate the normal time needed to transfer numbers to 8x8, minimizing service disruptions. SunRocket’s former customers will still need to pay 8x8 for a new plan since any money paid to SunRocket is likely lost. Customers will also need to make arrangements with 8x8 both to keep their existing phone number and to secure and install a new Packet8-compatible gateway in order to get Packet8 service. Our analysis: Customers should understand the difference between bad technology and bad financial management and not fault VoIP just because SunRocket couldn’t service 200,000 customers with $80 million in VC funding. 8x8 does seem to have more solid financials than did SunRocket (with $11.9 million in the bank and a quarterly cash burn rate just under half-a-million per quarter) and 8x8 is growing its business customer base with VoIP offers to broaden its revenue opportunities. However, we still doubt that standalone consumer VoIP services delivered over the Internet make for long term financial success. Rather we think that “bring your own broadband” (BYOB) consumer VoIP providers like Vonage, 8x8, and others will continue to face difficulty when competing against the double and triple play bundled services offered by telcos and cable companies. Further reading: Another consumer VoIP provider faces hard times; VoIP woes: Losing service without warning; SunRocket Largely A Management Failure.   What do you think? Post a comment on this newsletter

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Contact the author: Steve Taylor is president of Distributed Networking Associates and publisher/editor-in-chief of Webtorials. For more detailed information on most of the topics discussed in this newsletter, connect to Webtorials, the premier site for Web-based educational presentations, white papers, and market research. Taylor can be reached at taylor@webtorials.com Larry Hettick is an industry veteran with more than 20 years of experience in voice and data. He is Vice President for Telecom Services and Infrastructure at Current Analysis, the leading competitive response solutions company. He can be reached at lhettick@currentanalysis.com This newsletter is sponsored by Netpro Active Directory real-time monitoring, auditing and reporting on all critical changes Auditing Active Directory plays a crucial role in operational, troubleshooting and security issues. However, the tools in Windows Server can be limited and difficult to use in creating a cohesive change management and audit process. In this whitepaper, you'll learn how to manage and protect your Windows infrastructure with fast and easy methods to audit changes, troubleshoot, restore and report within Active Directory. Also, find out what areas of Active Directory you should be auditing to support security policies and regulatory compliance. ARCHIVE Archive of the Convergence & VoIP Newsletter. BONUS FEATURE IT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE You've got the technology snapshot of your choice delivered to your inbox each day. Extend your knowledge with a print subscription to the Network World newsweekly, Apply here today. International subscribers, click here. SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007