A Merger for Converged Communications

As Eicon acquires Dialogic, the new company sees massive opportunities in rapidly changing telephony and media technologies.

by Alex Goldman ISP-Planet Managing Editor [October 6, 2006]

Montreal-based Eicon Networks Corporation has completed the acquisition of Intel's Dialogic division (based in Parsippany, N.J.) and has taken the Dialogic name for the combined entity.

The corporate headquarters will remain in Montreal, but the company will have a multinational business. "We will be a $200 million company," says Nick Jensen, president and CEO of the new Dialogic. "We'll be the biggest play in our industry, with about 600 employees of which 275 will be in R&D. We will have 7 sites with more than 45 people each."

He says that Dialogic was the market leader when it was acquired by Intel in 1999, and still retains significant name recognition, even though it was not promoted by Intel. "We are excited to rejuvenate the Dialogic brand," says Jensen.

The old Eicon developed media software, whereas Intel's Dialogic focused on telephony boards and SS7 products. As media moves to IP, there is a convergence, and companies with complimentary skill sets are working together. That's exactly how Eicon and Dialogic met, long before they merged.

"We started a co-development project," explains Jim Machi, vice president of product marketing in the new company and an employee of Dialogic since before the Intel acquisition. "We both saw a need in the market, and we were strong in one area while they were strong in another."

"Jim and I first met and first talked a few years ago," explains Jensen.

Telephony
Machi says that ISPs will be most interested in Dialogic if they are becoming telephony providers. "We sell to customers who create solutions for ISPs interested in adding telephony to their portfolio," he says. "What's interesting to your readers is how we help ISPs become ITSPs. We have boards that are gateways. The telephone I'm talking to you on today can go through a system that coverts it to IP."

The trend is described in this cartoon. If you've ditched e-mail for IM to obtain more immediate communication, you may find that you want to connect a telephony feature to your IM client.

Machi feels Dialogic has a head start as telephony moves to IP. "Back in 1996, the original Dialogic created the first PSTN to IP gateway."

The company is working on unified communications. It is integrating new technologies such as PCI Express into its boards. It is working with Microsoft's unified communications strategy. "We have an intensive road map," says Jensen.

So there will be many product announcements?

"Yes," says Machi. "And some of them will be in November."

The press release summarizes it neatly with a comment from Machi. "Our mission is to become the number one systems platform provider for the converged communications segment."

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