Brett Shockley, cofounder and CEO of Spanlink Communications, saw the potential of IP telephony a decade ago. In the mid-’90s, his Plymouth company developed an application that allowed Internet users to click on a link and talk to someone in a contact center via their computer mic and speakers. “It seemed like a technology that would only continue to improve and become more popular,” Shockley says.
That it has. Though the hype of IP telephony—known more commonly as voice over Internet protocol, or VOIP—exceeded implementation a few years ago, access to increased bandwidth and the continuing convergence of voice and data networks is helping VOIP gain broader acceptance. Revenue generated in the United States by VOIP increased from $200 million in 2004 to $1.1 billion a year later, according to the Virginia-based Telecommunications Industry Association. The trade group projects that the VOIP market will increase to $5.1 billion by 2009.
Spanlink’s piece of that market should grow even more thanks to its CentralControl software, a product introduced in March 2004 that lets companies manage their VOIP network components (as well as their phones, call center, and voice mail) over a single server. Senior administrators maintain the core components and can make changes—such as adding phones, adding features, and limiting dial-out privileges—through secure access.
Spanlink’s reputation was built on contact-center software technology, dating back to a program that automatically told callers how long they could expect to wait on hold. The 18-year-old company’s success in that area led to a 2000 deal in which San Jose–based Cisco Systems became a primary investor; Spanlink went private after four years of public ownership. Spanlink continues to provide products and services to help Cisco customers who are shifting from traditional to IP-based call-center systems. This has helped fuel 35 percent sales growth at Spanlink in 2005 from $30 million in 2004. It also has triggered expansion efforts that are set to increase Spanlink’s work force by 100 or so employees this year.
Last year, BlueStream Ventures in Minneapolis and Split Rock Partners in Eden Prairie ponied up a total of $12 million in fresh venture capital. Spanlink is spending the funds on research and development, new hires, and new marketing efforts, primarily in VOIP.
“You can no longer buy a router at Best Buy without it having VOIP capability bundled with it,” Shockley says. “And with the remote work force coming into its own, it no longer matters where the equipment is—only how you manage it. The technology has really become pervasive.”
