SWOT
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8x8

To deliver innovative cloud communications solutions that enable businesses to communicate globally by powering one billion connections every day



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Align the strategy 5/13/25

8x8 SWOT Analysis

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To deliver innovative cloud communications solutions that enable businesses to communicate globally by powering one billion connections every day

Strengths

  • PLATFORM: Fully integrated XCaaS solution combining UCaaS, CCaaS, and CPaaS on a single platform, reducing complexity and total cost of ownership
  • GLOBAL: Extensive international presence with direct inward dialing in 50+ countries and number porting in 40+ countries enabling global business operations
  • INTEGRATION: Strong Microsoft Teams integration allowing native voice calling with over 20% of customers leveraging this capability for seamless workflows
  • AI: Advanced AI capabilities across product portfolio including speech analytics, virtual agent, and sentiment analysis driving operational efficiencies
  • RETENTION: 97% net retention rate in enterprise segment demonstrating strong product-market fit and customer satisfaction in key growth market

Weaknesses

  • COMPETITION: Facing intense competition from larger UCaaS players like RingCentral and Microsoft Teams with greater resources and market presence
  • AWARENESS: Lower brand recognition compared to competitors limiting ability to win new customers despite technical advantages of platform
  • DEBT: Significant debt load of approximately $550M in convertible notes constraining financial flexibility and investment capacity
  • SMB: Declining small business segment with 92% retention rate vs. 97% in enterprise segment indicating product-market fit challenges in this sector
  • TURNOVER: Recent executive leadership changes including CEO transition creating potential execution risks during transformation period

Opportunities

  • AI: Expanding AI capabilities across platform to deliver intelligent automation, insights, and improved CX while driving operational efficiencies
  • TEAMS: Growing Microsoft Teams direct routing market representing $13B TAM by leveraging deep Teams integration capabilities
  • ENTERPRISE: Accelerating upmarket strategy focusing on mid-market and enterprise segments where win rates and retention are strongest
  • VERTICAL: Developing industry-specific solutions for healthcare, financial services, and retail to increase differentiation and expand market share
  • INTERNATIONAL: Expanding global footprint and capabilities to serve multinational enterprises with complex global communication requirements

Threats

  • CONSOLIDATION: Industry consolidation among competitors creating larger, better-funded rivals with more comprehensive platform offerings
  • MICROSOFT: Microsoft's continued expansion of Teams capabilities and pricing strategies threatening core voice and collaboration business
  • PRICING: Pricing pressure in core UCaaS market driving margin compression as category matures and competition intensifies for market share
  • RECESSION: Potential economic downturn impacting customer IT spending and accelerating churn particularly in vulnerable small business segment
  • INNOVATION: Accelerating pace of innovation in AI and communications technology requiring increased R&D investment to remain competitive

Key Priorities

  • AI-FIRST: Accelerate AI integration across all products to enhance differentiation, improve customer experience, and drive operational efficiencies
  • ENTERPRISE-FOCUS: Pivot resources toward enterprise and mid-market segments where retention and growth metrics are strongest
  • TEAMS-LEVERAGE: Expand Microsoft Teams integration capabilities to capitalize on growing enterprise demand and $13B market opportunity
  • VERTICAL-SOLUTIONS: Develop industry-specific solutions targeting high-value verticals to differentiate from generic platform competitors
8x8 logo
Align the plan 5/13/25

8x8 OKR Plan

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To deliver innovative cloud communications solutions that enable businesses to communicate globally by powering one billion connections every day

AI ACCELERATE

Lead the industry in AI-powered communications

  • ADOPTION: Increase customer AI feature adoption from 30% to 50% of customer base through active enablement campaign
  • PLATFORM: Launch unified AI Foundation platform integrating all AI features with common interface and management console
  • AUTOMATION: Deploy AI virtual agents for 25 most common customer service scenarios with 85% containment rate benchmark
  • INSIGHTS: Deliver conversational intelligence dashboard capturing customer sentiment, intent, and topics across all channels
ENTERPRISE GROWTH

Dominate enterprise communications globally

  • ACQUISITION: Increase enterprise customer base by 25% with specific focus on Fortune 2000 companies in target verticals
  • EXPANSION: Improve enterprise net retention rate from 97% to 102% through structured account growth program and upsell
  • TEAMS: Grow Microsoft Teams integration revenue by 50% by expanding feature set and implementing targeted campaign
  • VERTICAL: Launch industry-specific solutions for healthcare, financial services, and retail with dedicated go-to-market
PLATFORM INNOVATION

Redefine integrated communications platform

  • EXPERIENCE: Launch XCaaS 2.0 platform with seamless integration of employee and customer experience in single interface
  • GLOBAL: Expand direct inward dialing coverage to 10 additional countries reaching 60+ total countries worldwide
  • CAPABILITIES: Deliver 20 major new platform capabilities prioritized by enterprise customer advisory board feedback
  • PERFORMANCE: Achieve 99.999% platform uptime and superior voice quality metrics (MOS>4.2) across global network
OPERATIONAL EXCELLENCE

Optimize business performance for growth

  • MARGIN: Improve non-GAAP operating margin from 12.1% to 16% through operational efficiencies and revenue optimization
  • EFFICIENCY: Reduce customer acquisition cost (CAC) by 15% while maintaining or improving lead generation and conversion
  • ADOPTION: Increase product adoption metrics with 85% of customers using at least 3 distinct platform capabilities
  • RETENTION: Reduce churn in SMB segment from 8% to 6% through targeted retention programs and proactive intervention
METRICS
  • Annual recurring revenue (ARR): $800M by FY-end
  • Net retention rate: 100% across all segments
  • Operating margin (non-GAAP): 16%
VALUES
  • Customer Focus
  • Innovation
  • Accountability
  • Teamwork
  • Integrity
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Align the learnings 5/13/25

8x8 Retrospective

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To deliver innovative cloud communications solutions that enable businesses to communicate globally by powering one billion connections every day

What Went Well

  • ENTERPRISE: Enterprise ARR growth of 17% year-over-year outpacing overall market and demonstrating successful upmarket strategy
  • TEAMS: Microsoft Teams integration revenue grew 40% year-over-year representing strong product-market fit in key growth segment
  • MARGIN: Non-GAAP operating margin improved to 12.1% from 8.6% previous year through disciplined cost control and operational efficiency
  • RETENTION: Enterprise customer net retention rate improved to 97% from 95% previous year indicating strong product satisfaction

Not So Well

  • SMB: Small business segment declined 3% year-over-year with increased churn affecting overall revenue growth performance
  • GROWTH: Total revenue growth of 3% year-over-year below market growth rate and company target of 8-10% annual growth
  • CASH: Cash flow from operations decreased by 15% year-over-year primarily due to increased investments in platform development
  • COMPETITION: Competitive displacement increased 20% in SMB segment with Microsoft Teams and RingCentral winning significant share

Learnings

  • SEGMENT: Product-market fit varies significantly by customer segment requiring more tailored product strategy and go-to-market approach
  • BUNDLING: Customers using multiple product components show 40% higher retention highlighting importance of cross-selling strategy
  • AI: Early AI adopters demonstrate 25% higher ARPU and 15% higher retention validating AI investment strategy and roadmap
  • VERTICAL: Industry-specific solutions produce 35% higher win rates and 20% higher ASPs than generic platform offerings

Action Items

  • REFOCUS: Reallocate 30% of SMB sales and marketing resources to enterprise and mid-market segments to accelerate growth
  • BUNDLE: Implement integrated solution selling approach targeting 40% attachment rate for contact center with UCaaS platform
  • AI-ROADMAP: Accelerate AI feature development with goal of 3 major AI capabilities launching per quarter in upcoming fiscal year
  • VERTICAL: Develop dedicated solutions and go-to-market strategies for healthcare, financial services, and retail verticals
8x8 logo
Overview

8x8 Market

Competitors
RingCentral logo
RingCentral
Zoom logo
Zoom
Vonage logo
Vonage
Microsoft Teams logo
Microsoft Teams
Cisco Webex logo
Cisco Webex
Products & Services
No products or services data available
Distribution Channels
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Align the business model

8x8 Business Model Canvas

Problem

  • Complex fragmented communication systems
  • Expensive on-premises infrastructure
  • Difficulty scaling globally
  • Poor customer experience integration
  • Limited operational intelligence and insights

Solution

  • Single platform for voice, video, chat, contact
  • Cloud-based infrastructure with global reach
  • Flexible deployment and integration options
  • AI-enhanced customer experience capabilities
  • Unified analytics across all communications

Key Metrics

  • Annual recurring revenue (ARR)
  • Customer lifetime value (LTV)
  • Customer acquisition cost (CAC)
  • Net retention rate
  • Platform usage and adoption rates

Unique

  • Single code base for UCaaS and CCaaS
  • Global coverage in 50+ countries
  • Deep Microsoft Teams integration
  • End-to-end AI capabilities
  • Unified experience platform

Advantage

  • Proprietary global voice network
  • 180+ patents in communications technology
  • AI capabilities built natively into platform
  • Unified architecture for all services
  • Deep vertical industry expertise

Channels

  • Direct enterprise sales team
  • Channel partner network (6,000+ partners)
  • Digital and e-commerce
  • Systems integrators
  • Telecommunications service providers

Customer Segments

  • Enterprise (1,000+ employees)
  • Mid-market (100-999 employees)
  • Small business (10-99 employees)
  • Global multinational corporations
  • Regulated industries (healthcare, finance)

Costs

  • Cloud infrastructure and operational costs
  • Research and development investments
  • Sales and marketing expenses
  • Customer success and support
  • Global presence and localization costs
8x8 logo
Overview

8x8 Product Market Fit

1

Single integrated platform reduces complexity

2

Global coverage enables worldwide operations

3

AI-enhancement increases operational efficiency



Before State

  • Fragmented communication tools creating silos
  • Expensive legacy on-premises systems
  • Limited global reach and flexibility
  • Operational inefficiencies and complexity
  • Disconnected customer service experience

After State

  • Unified platform for all communication needs
  • Cloud-based flexibility and scalability
  • Global reach with local presence
  • AI-enhanced capabilities
  • Integrated contact center solutions

Negative Impacts

  • Reduced productivity and collaboration
  • High maintenance and operating costs
  • Poor customer satisfaction and experience
  • Limited business agility and scalability
  • Disjointed internal and external communications

Positive Outcomes

  • 60% lower total cost of ownership
  • 25% increase in agent productivity
  • 35% improvement in first call resolution
  • 99.999% platform uptime
  • 40% faster deployment than legacy systems

Key Metrics

Net retention rate of 97%
Average ARR per customer $32,000
NPS score of 65
4.2/5 on G2 with 450+ reviews
Customer retention rate of 91%

Requirements

  • Cloud infrastructure transition
  • Integration with existing business tools
  • Employee training and change management
  • Clear implementation roadmap
  • Ongoing optimization process

Why 8x8

  • Phased implementation approach
  • Dedicated customer success management
  • Personalized training and enablement
  • Regular performance reviews
  • Continuous platform optimization

8x8 Competitive Advantage

  • Single platform vs competitors' multiple tools
  • More comprehensive global reach
  • Deeper Microsoft Teams integration
  • More cohesive CX+EX integration
  • Superior AI/ML capabilities

Proof Points

  • 99% uptime service level agreement
  • 50+ country global reach
  • Gartner Magic Quadrant Leader
  • 180,000+ global customer base
  • 250+ million minutes per month
8x8 logo
Overview

8x8 Market Positioning

What You Do

  • Provide integrated cloud communications platform

Target Market

  • Small, mid-market, and enterprise businesses

Differentiation

  • Single platform for voice, video, chat, contact center
  • Global reach with local numbers in 50+ countries
  • End-to-end AI integration
  • Strong Microsoft Teams integration

Revenue Streams

  • Subscription services
  • Usage-based services
  • Professional services
  • Hardware sales
  • API offerings
8x8 logo
Overview

8x8 Operations and Technology

Company Operations
  • Organizational Structure: Functional with geographic regional teams
  • Supply Chain: Cloud infrastructure with data centers globally
  • Tech Patents: 180+ patents for voice, video, security tech
  • Website: https://www.8x8.com
Top Clients
8x8 logo
Competitive forces

8x8 Porter's Five Forces

Threat of New Entry

MODERATE: Global infrastructure requirements create barriers, but cloud technologies lower entry costs for niche or specialized players

Supplier Power

MODERATE: Reliance on major cloud providers but multiple options (AWS, GCP, Azure) provide negotiating leverage and switching possibilities

Buyer Power

HIGH: Low switching costs for customers and price transparency in UCaaS market give buyers significant negotiating power and choice options

Threat of Substitution

MODERATE: Free/freemium communication tools pose threats for basic use cases, but integration and security needs limit enterprise substitution

Competitive Rivalry

HIGH: UCaaS market has 15+ significant competitors including tech giants Microsoft, Cisco, and Zoom with massive resources and market power

8x8 logo
Drive AI transformation 5/13/25

8x8 AI Strategy SWOT Analysis

To deliver innovative cloud communications solutions that enable businesses to communicate globally by powering one billion connections every day

Strengths

  • FOUNDATION: Early investments in AI with existing speech analytics, virtual agents, and sentiment analysis capabilities across platform
  • DATA: Extensive customer interaction data from over 250M minutes monthly providing rich training data for AI models and use cases
  • INTEGRATION: Unified platform architecture enabling consistent AI deployment across all communication channels (voice, video, chat)
  • TEAM: Strong AI/ML engineering talent with acquisition of specialized teams from Fuze and other strategic acquisitions
  • EXPERIENCE: Proven implementation experience with over 5,000 customers already using at least one AI capability

Weaknesses

  • RESOURCES: Limited R&D budget compared to larger competitors constraining pace of AI innovation and deployment at scale
  • BRANDING: Minimal market recognition as an AI leader despite substantial capabilities creating challenges in sales positioning
  • FRAGMENTATION: Some AI features developed in silos resulting in inconsistent user experience and implementation challenges
  • ADOPTION: Only 30% of customer base actively using AI features indicating adoption barriers and potential value perception issues
  • TALENT: Challenges recruiting top AI talent against tech giants offering higher compensation and cutting-edge research opportunities

Opportunities

  • CONVERSATIONAL: Develop advanced conversational AI for both employee and customer experiences leveraging existing voice platform
  • INSIGHTS: Create unified analytics and insights layer across all communication channels providing actionable business intelligence
  • AUTOMATION: Expand self-service and automation capabilities to reduce support costs and improve customer satisfaction metrics
  • PERSONALIZATION: Implement personalized experiences based on user behavior, preferences, and interaction history
  • EFFICIENCY: Deploy AI to optimize network performance, call quality, and resource utilization improving margins and service levels

Threats

  • GIANTS: Tech giants like Microsoft, Google and Amazon investing billions in AI capabilities that could be integrated into communications
  • STARTUPS: Nimble AI-first startups disrupting specific communication workflows with specialized solutions and capturing market share
  • COMMODITIZATION: Risk of AI features becoming commoditized before 8x8 can establish market leadership and differentiation
  • REGULATION: Emerging privacy regulations and AI governance requirements potentially limiting data usage and implementation
  • EXPECTATIONS: Rapidly evolving customer expectations for AI capabilities outpacing ability to deliver production-ready solutions

Key Priorities

  • EXPERIENCE-AI: Develop comprehensive AI-powered experience platform integrating customer and employee interactions with intelligence
  • VERTICAL-AI: Build industry-specific AI solutions for healthcare, financial services and retail with specialized compliance features
  • MICROSOFT-AI: Integrate AI capabilities with Microsoft Teams offering to enhance differentiation and value proposition
  • PLATFORM-AI: Create unified AI platform layer across all products ensuring consistent, scalable intelligence throughout
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5/13/25

8x8 Financial Performance

Profit: $38.4 million operating income FY 2023
Market Cap: Approximately $400 million
Stock Symbol: EGHT
Annual Report: View Report
Debt: Approximately $550 million in convertible notes
ROI Impact: Customers report 60% lower TCO vs. on-premises

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