Helps magicJack Evolve with the UCaaS Industry

January 24, 2015 | Olivia Sekerak
Magicjack and Broadsmart Case Study

Broadsmart has been the leading hosted Unified Communications-as-a-Service (UCaaS) provider for medium-to-large multi-location enterprise customers nationwide. As a single source provider for businesses’ telecom needs, Broadsmart has provided its customers with unparalleled selection, savings, and service. Broadsmart encompassed a range of applications and services in the cloud, with everything from PBX replacement products and video and audio conferencing services, to web collaboration and mobile apps for desktop-to-smart device connection.

Broadsmart’s leadership in the UCaaS space and 30%+ operating and 35% EBITDA margins in 2015 has led to its recent acquisition by magicJack, king of Voice over IP (VOIP). Broadsmart was acquired for $40 million and is forecasted to have 20%+ year-over-year growth in 2016.

Growing Pains

In order to create a reliable unified communications solution that could serve their customers’ business telecom needs, Broadsmart needed a back-office infrastructure that could scale. “Our previous billing and back-office solution was holding us back as an organization,” said Tom Tharrington, President of Broadsmart. “As we gained large enterprise and multi-location customers, the previous system was unable to process our usage, impacting our ability to manage the customer.”

A Solution to Scale

Tharrington and his team got to work researching a new solution, and ultimately stumbled upon “We realized quickly that was what we needed. They could provide us with an end-to-end solution that could scale with us.” With, Broadsmart was able to have complete control over their billing process, with easy online invoicing and metered recurring billing capabilities.’s ability to evolve to meet the ever-changing needs of UCaaS providers proved to be a major value add, keeping Broadsmart and now magicJack on the cutting edge. “It’s rare that a technology company can remain innovative years after the partnership begins…But is always thinking ahead,” says Tharrington.

Another plus for is that they provide Broadsmart with a dedicated account manager that understands their business and technology needs. “It’s like having someone on the team that is an extension of the Broadsmart team,” says Tharrington. “This extraordinary service and support has been great for our team and a big reason for the longevity of our business relationship.”

Seeing Results has not only allowed today’s magicJack to handle their billing process with ease, but they’ve also aided them in their overall business as UCaaS providers. “ has been a major contributor, enabling Broadsmart and magicJack to have lower overhead, scale with greater operating margins, and win enterprise business,” says Tharrington. “It’s assuring to know one of our most important technology partners is always poised to support our growth.”

Hear from magicJack’s Russell Lester, VP Operations & Strategy SMB

“ has been a consultative business partner from the start. They are keenly aware that our success is their success and have provided both strategic and tactical recommendations as we’ve worked through our initial setup and deployment. We would not have been able to launch in-market when we did if it were not for the efforts of the team working against tight deadlines to deliver our needed functionality.

They have a service mentality throughout all levels of the organization and are methodical about follow-up and execution. Many vendors competing in’s space have a typical “we can’t do that” mentality whereas always considers, “How could we do that?” and that has made all the difference. They get our desire to drive a WOW customer experience as a linchpin of our go-to-market strategy. We are proud to be partnered with as one of their earliest integrations with and are looking forward to growing our respective businesses together.”


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