XCast Labs draws $2.7M finance deal

The SaaS provider also plans interoperability with Skype

VoIP, unified messaging, products and services

XCast Labs caught our attention earlier this month when it closed on a $2.7 million financing deal. The company targets smaller cable operators, competitive local exchange carriers and other companies that want to offer integrated IP-based services to their users. An advanced software-as-a-service provider, it has developed its own Session Initiation Protocol (SIP) software, softswitch technology and session border controller. XCast offers video telephony and video conferencing, IP-PBX, SIP trunking and other advanced IP applications.

In a separate announcement also earlier this month, XCast also disclosed that it its basic VoIP products and services would be fully interoperable with Skype by mid-month. Following the news about Skype interoperability, we had a chance to talk with Cliff Rees, the CEO of XCast Labs. He noted that the service was driven by requests from both the consumer and business user community and that while Skype video call interoperability isn't included in this release, it is on the road map.

"We took this step because we recognize that allowing the free flow of calls between our users and the millions of Skype users globally will increase the value of XCast services," Rees said in a statement. "We currently handle over 500 million minutes of telecom traffic per year supporting nearly 50,000 lines of voice, video and fax service over the Internet."

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XCast Labs caught our attention earlier this month when it closed on a $2.7 million financing deal. The company targets smaller cable operators, competitive local exchange carriers and other companies that want to offer integrated IP-based services to their users. An advanced software-as-a-service provider, it has developed its own Session Initiation Protocol (SIP) software, softswitch technology and session border controller. XCast offers video telephony and video conferencing, IP-PBX, SIP trunking and other advanced IP applications.

In a separate announcement also earlier this month, XCast also disclosed that it its basic VoIP products and services would be fully interoperable with Skype by mid-month. Following the news about Skype interoperability, we had a chance to talk with Cliff Rees, the CEO of XCast Labs. He noted that the service was driven by requests from both the consumer and business user community and that while Skype video call interoperability isn't included in this release, it is on the road map.

"We took this step because we recognize that allowing the free flow of calls between our users and the millions of Skype users globally will increase the value of XCast services," Rees said in a statement. "We currently handle over 500 million minutes of telecom traffic per year supporting nearly 50,000 lines of voice, video and fax service over the Internet."

Our first observation: We noticed the Skype interoperability took place only two weeks after we reported Skype's Stefan Öberg had proposed more cooperation and interoperability between Skype and PBX manufacturers. And we were amused that Rees pointed out it wasn't just Skype that wanted interoperability -- it was the users that drove Xcast's decision.

Rees also gave us a preview of the news announced on June 17 that it has extended its IP video mail services to a BlackBerry Curve, Pearl and Storm -- enabling users to receive video messages a videophone or Softphone application. XCast also delivers traditional voice mail to BlackBerry devices either as an MP3 attachment to e-mail or via RSS feed. According to the company’s announcement, to deliver the video mail "the XCast server analyzes the BlackBerry firmware and type of device [and] then automatically provides a link . . . that corresponds to the particular device model and firmware from which the request was generated."

Our second observation: When Cisco pointed out earlier this month in its VNI update that mobile video would be responsible for 64% of mobile traffic by 2013, we didn't ask how much of that traffic would be video mail. But if the BlackBerry's popularity with the business community holds for another few years, then we're sure that video mail services like the one announced by XCast will certainly account for some of the growing network demand to support mobile IP video.

Read more about voip & convergence in Network World's VoIP & Convergence section.

Steve Taylor is president of Distributed Networking Associates and publisher/editor-in-chief of Webtorials. Larry Hettick is a principal analyst at Current Analysis.