AOTMP Heralds MDSL-Telesoft Combination as Positive

AOTMP Heralds MDSL—Telesoft Combination as Positive

MDSL - Telesoft Merger

The telecom expense management sector, which also encompasses IT and mobility, is undergoing another round of consolidation as next-generation services such as the Internet of Things compel vendors to help enterprises handle evolving technologies. The newly announced merger of MDSL and Telesoft comes as organizations spend $1.5 trillion each year on communications products and services. Indeed, the union of the two privately held companies creates the second-largest vendor in the market, well positioned to compete with Tangoe and Calero, two of the largest providers; and gives enterprises expanded access to global capabilities. It also allows the combined company to serve a broader market from mid- to large-sized to global multi-national corporations. All in all, AOTMP sees the deal as positive for the industry, the two vendors and their clients. Scott Lawrence, vice president and senior research analyst, called the merger “a great move for the two companies and the industry at large.”

MDSL and Telesoft say they are going to maintain their two different platforms for the most applicable use cases; this will allow them to avoid integration problems that have plagued other vendors’ customers over the course of multiple acquisitions, while bringing together internal resources with more than 50 years of combined experience in telecom management.

Timothy C. Colwell, senior vice president of Efficiency First® Adoption, agreed, adding that MDSL-Telesoft will gain significant market share because of the companies’ complementary portfolios – call accounting on the Telesoft side, global reach on the MDSL side, and mutual TEM background. “This makes them a viable organization to lead the market,” Colwell said.

This makes them a viable organization to lead the market.” - AOTMP’s Timothy C. Colwell, senior vice president of Efficiency First® Adoption

Along those lines, MDSL and Telesoft are both AOTMP Efficiency First® Solution Certified vendors. MDSL stands out as the first global vendor to earn the certification; Telesoft earned its credentials in summer 2017. During the certification process, AOTMP noted MDSL’s fortes as:

  • Account management
  • Reporting
  • Processes
  • Implementation
  • Managed services

Meanwhile, AOTMP found that Telesoft is strong in:

  • Account management
  • Invoice processing
  • Audit/optimization

All in all, AOTMP sees the merger of MDSL and Telesoft as very positive. As one example, the deal “takes a very solid client service and service delivery practice from Telesoft and combines it with MDSL’s software, which is one of the better platforms out there (single pane, one code source, etc.),” said Kim Warren, vice president of vendor program management at AOTMP. Telesoft will bring a strong implementation and program management practice, which will complement and augment MDSL’s project management and client services practice.

Much of that will happen thanks to the financial backing of Sumeru Equity Partners, which is buying MDSL and adding it to its existing Telesoft holding. Sumeru specializes in mid-market growth funding, among other models, in the technology world. It tends to invest in companies with more than $10 million in annualized revenue. “This is an important move for Sumeru Equity Partners,” said Bill Hinton, vice president and general manager of AOTMP’s vendor practice. That’s because Sumeru gains global reach in this business through MDSL-Telesoft.

Global prowess will prove ever more important as technology continues to connect organizations worldwide, and as those organizations deploy telecom, IT and mobility to improve operations, revenue and customer satisfaction.

“This is certainly a positive for the telecom management industry, and for the domestic and global organizations looking for solutions,” said Tim Lybrook, CEO of AOTMP. “Knowing both of these providers and their client bases very well, we are excited to see these two customer service-driven companies combine their unique and complementary strengths to become a clear industry leader.”

The next question becomes, who will follow in MDSL and Telesoft’s footsteps?

Read the full press release here.

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