Channel CCaaS Sales Driving ‘Record-Breaking’ Growth For Dialpad

The privately-held cloud communications specialist continues to smash its own records and brought in more than half of its revenue in Q2 2021 through channel partners, who are landing lucrative UCaaS and CCaaS deals.

Cloud communications provider Dialpad has experienced record-breaking growth over the last year and a half. During Q2 2021, however, the company broke new records. This time, in channel growth.

Privately-held Dialpad is seeing unparalleled demand for its communication solutions, especially Contact Center as a Service (CCaaS). The company has already surpassed $100 million in annual recurring revenue, and the channel brought in nearly 60 percent of the revenue during its Q2 2021, which ended July 31, up from 40 percent in the previous quarter, Mike Kane, vice president of global channel sales at Dialpad, told CRN.

That’s because Dialpad’s existing unified communications-as-a-service (UCaaS) users are now expanding into the contact center, Kane said.

“The profile of our customers are typically very cloud forward. That’s one thing we see across the board. [Our customers] are looking for a solution that can integrate with all the different applications they’ve already invested in,” he said.

[Related: Cloud Contact Center And UCaaS: Better Together Or Best Of Breed?]

San Francisco-based Dialpad launched its partner program in 2017. In March, the company rolled out a new partner portal -- the Dialpad Partner Success Portal -- to help its partners keep up the strong momentum they’ve been showing since the start of the COVID-19 pandemic.

Both the UCaaS and CcaaS spaces have seen “explosive” growth since 2020. The channel has driven much of that growth as customers look for a unified play for both back office communications, or UCaaS solutions, and their front office -- the contact center, said Jennifer Gallego, executive vice president of global sales for master agent AVANT, a Dialpad partner.

“There are a ton of UC providers out there and they‘re often very similar with very little bits of differentiation. With Dialpad, they have their proprietary voice intelligence platform that’s fully integrated, that makes it different. [Dialpad] is going very deep with their features,” she said.

Dialpad‘s biggest customer win in Q2 was an 1,200 seat CCaaS deal done alongside an AVANT partner, Kane added.

“When the users are in their homes or working from anywhere, the ability to leverage our intelligence -- that real-time transcription and sentiment -- it really helps those users become more aware and productive on our CCaaS,” he said.

Kane said that Dialpad’s customers are very cloud-savvy and typically already users of popular cloud platforms, including G-Suite, Office 365, and Salesforce. Dialpad often goes up against the cloud communications providers that have their own platforms for all communications, such as 8x8, as well as the pure play UCaaS or CCaaS providers, such as RingCentral and NICE inContact.

As well as CCaaS, UCaaS space still has plenty of room to grow. The global unified communications market size is projected to account for $167.1 billion by 2025 and is expected to grow with a 16.8 percent compound annual growth rate over the forecast period from 2019 to 2025, according to research from Chicago-based AVANT.

Dialpad last October announced $100 million in Series E funding. The company in total has raised $220 million and was valued at more than $1.2 billion as of last year.