CRM - April 2008 - (Page 37)

THE 2008 SERVICE SNAPSHOT JACADA • Paul O’Callaghan, CEO • F O U N D E D : 1990 • H E A D Q U A R T E R S : Atlanta, Ga. acada began in 1990 as a provider of unified desktop and process optimization solutions for customer service operations, accumulating customers as nearby as its Atlanta home and as far away as Germany and Israel. Four years ago, however, executives realized they could really push the company to the next level by focusing on a single core strength—adding by subtracting. According to company statistics, in the past three years Jacada’s contact center solutions business expanded at a compound annual growth rate of 61 percent. But Jacada needed to take one big leap—and the company opened 2008 by doing just that: selling its application modernization business to Software AG for $26 million, allowing the company to target all its efforts exclusively on contact center solutions. Sheryl Kingstone, director of enterprise research at Yankee Group, says Jacada made the deal at the right time. “They get $26 million and use of assets, technology, and money to focus more on the contact center, where all their new deals are anyway.” Sheila McGee-Smith, president and principal analyst of McGee-Smith Analytics, also believes A Smaller Constellation JACADA HOPES A TIGHTER FOCUS WILL LEAD TO BRIGHTER FORTUNES Jacada sold its application modernization business to focus on expanding its contact center solutions. the step was what the company needed. “With that [cash], Jacada can now do marketing or build a sales force that allows [it] to expand its footprint dramatically in a more focused way.” Not all the money is going to be used that way: The company announced in February plans to set aside as much as $10 million to repurchase shares of company stock, a move seen as a show of confidence in the company’s business model and long-term prospects. Reseller agreements with Accenture and IBM Global Services are also encouraging. Meanwhile, the firm’s most recent quarter showed some serious worldwide strength, including contracts with three new telecommunications customers—one each in the United Kingdom, Canada, and Eastern Europe—and one North American insurance company. And, according to recent filings, total contact center revenue grew 57 percent for fiscal year 2007 to a record $13.3 million, up from $8.5 million. After four years of thought, build-up, and, finally, action, Jacada’s future seems bright, indeed. —Christopher Musico O’CALLAGHAN www.destinationCRM.com CUSTOMER RELATIONSHIP MANAGEMENT | APRIL 2008 37 rising stars AWARDS http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - April 2008

CRM - April 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point A Tenancy of One’s Own The Rebirth of Taxes destinationCRM Dashboard Labor Disputes Reach The Contract Center The Plight of the Wirelines Required Reading The 2008 Service Awards The 2008 Service Leader Awards Customer Self-Service Microsoft Genesys Oracle eGain Astute Solutions The 2008 Rising Stars The 2008 Service Elite Awar Re:Tooling Scouting Report Pint of View

CRM - April 2008

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