For us, Voice-over-Internet-Protocol is a neat, cheap and convenient way to communicate with our near and dear ones. For others still, it’s a technology to explore and be fascinated about. And for other others, Voice-over-Internet-Protocol is a business – to run and use to mint in the smoothest and most convenient way possible. And in the face of stiff and growing competition, efficiency takes top priority for people running the VoIP business.
SunRocket – a Vienna based provider of residential VoIP technology – is currently on an increase-revenue-decrease-expense spree. The company – known for its prudent frugality – has laid off a quarter of its workforce in an effort to reduce costs amidst increased competition. SunRocket is second only to Vonage in the broadband phone market, but unlike Vonage, does not indulge its funds in massive advertisement campaigns, preferring aggressively priced calling packages over the expensive fanfare. This little strategy earned them 206,000 customers over in the last three years. Not just a successful strategy, but a classic case of what my Business Studies teacher would term ‘Minimum Input, Maximum Output.’
Commenting on the retrenchment, Chief Marketing Officer of SunRocket, Chris Mannella said that they were trying to lower their expenses in order to execute their business plan.
“We’re on the same path.” Mannella said. “We’ve just reduced operating expenses in light of the competitive environment.”
Since March 2005, SunRocket has received $80 Million in funding from several different investing firms. According to Mannella, SunRocket’s executives were considering a new round of venture capital funding in an effort to restructure the company. Well, they sure aren’t leaving any stone unturned in an effort to maximize their efficiency.
There’s no doubt in my mind that SunRocket is all set to become a lean, mean VoIP machine at minimum cost to the consumer. The company seems pretty serious about maximizing its efficiency while retaining its effectiveness. A low operating cost will mean higher profit to the company, which will not only enable SunRocket to add yet more features and innovations to its VoIP service, but will compel the competition to go the same way as SunRocket – maximum efficiency, minimum waste.
This post is written by Samarth Chandola, our full time VOIP news Editor
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