Case Study I-2 Voip2.Biz, Inc.: Deciding on the Next Steps for a Voip Supplier

1332 Words Oct 29th, 2011 6 Pages
CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier

Lawrence R. Milkowski, President and CEO of VoIP2.biz, Inc., an Indianapolis-based start-up supplier of Voice over Internet Protocol (VoIP) telephony to the small and midsize business market, knew he had a difficult job ahead of him. It was Friday, June 23, 2006, and he had to prepare his recommendations on the next steps for his fledgling company to the board of directors at its meeting on Tuesday, June 27, 2006. While Larry was a firm believer in the direction of the company, he knew that the board was anxious to resolve the future of the firm given the slower-than-hoped-for progress in getting the company’s cash flow to break even.

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The Company
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They selected an open source solution because it had the advantages of: (1) implementation on a commercially available commodity PC server, (2) high quality application code due to the ongoing review of a large user community, and (3) no licensing fees. Milkowski believed that the open source approach provided the best technological platform for smaller business customers due to its advanced call processing capability and significantly lower monthly telecommunications expense. Beginning in October 2005, VoIP2.biz was spun out of HSC as a separate corporation, owned by several outside investors, Milkowski, and HSC. HSC retained 70 percent of the stock in VoIP2.biz. Milkowski then developed what was called internally the “Phase I Plan.” In this plan, the infrastructure and staffing of

the business had to be completed and some presence in the market had to be accomplished. During late 2005 and the first half of 2006, employees at VoIP2.biz added to the functionality of the open-source IP PBX and entered into several reseller relationships with equipment manufacturers and carriers. These actions gave VoIP2.biz the ability to offer a complete end-to-end VoIP solution for business customers. Milkowski and his team of five engineers and sales professionals also sold the VoIP2.biz solution to several customers. VoIP2.biz signed

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