OStatic

Fonality Secures $12 Million in Financing

Open source telephony and communications company Fonality announced today it has received $12 million in an additional round of financing. That's good news in light of recent suggestions that investors are beginning to slowly close their wallets on open source companies.

According to a prepared statement, Fonality will use the money to bring "game-changing technology" to the telephony market, "with a special focus on affordability and mobility for businesses with 5 - 500 people per location." GigaOm has more on the news.

Fonality CEO Chris Lyman says the influx of cash also give the company "the freedom to further accelerate our growth and acquisition strategy."

The announcement comes a mere three weeks before AstriCon 2008, an open source telephony conference scheduled in Phoenix, AZ later this month. At least one industry-watcher is expecting additional news from Fonality once AstriCon gets underway.

"I wouldn't be surprised if Chris Lyman had a hand grenade or two primed and ready to lob out during AstriCon (PIKA Technologies did so at last year's AstriCon, announcing its appliance, but it got muffled by the SwitchVox acquisition)," says FierceVoIP's Doug Mohney.

Do you rely on open source telephony solutions in your company? What do these vendors get right? Where can they improve?

• Fonality
• VoIP
• telephony
• astricon2008

by Manjunatha on Sep. 04, 2008

It is great to see that open source companies have good business models for making money so that VCs can see an opportunity for funding them.

Many were raising their eye brows when companies were throwing their code to public and wondering how did they make money. Now people know that companies indeed can make money through consulting, customization and support, an opportunity that is huge as compared to license fees.

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