Dialpad reveals new momentum behind its drive to kill the desk phone

Craig Walker

San Francisco-based startup Dialpad Inc. today is revealing new evidence that its mission to kill the traditional desk phone with a cloud-based phone and communications system is taking off.

The company said it has added some 10,000 new customers in the past six months, bringing the total to 35,000. Among those added to the roster in addition to previous customers such as Uber Technologies Inc. and IBM Corp.’s Weather Channel unit are Stripe Inc., Netflix Inc., Eventbrite Inc. and Instacart Inc.

The company also said its subscription revenue growth has risen 138 percent from a year ago. Customers pay $15 to $35 a month per person to use the services.

Chief Executive Craig Walker (pictured), who started two previous Internet-based business communications companies that were bought by Google Inc. and Yahoo Inc. before founding Dialpad in 2011, told SiliconANGLE that the momentum reminds him of the rise of Google Apps. “We always knew it was a matter of when, not if,” he said. “That tipping point is happening.”

Ashley Sprague, head of IT at Quora Inc., said in Dialpad’s release that using the service has enabled the company to save more than half the information technology headcount it had for managing its telecommunications infrastructure.

Dialpad doesn’t have the field to itself. It competes not only with RingCentral, an 18-year-old company that claims 350,000 business customers, as well as 8X8 Inc., Vonage America Inc., Microsoft’s Skype for Business and Cisco Systems Inc.’s Spark. No doubt today’s announcements are intended to show to new prospects that upstart Dialpad is a keeper.

This year Dialpad aims to spread its wings. For one, it plans to offer more integrations with other software of the sort it has with Google’s G Suite and Salesforce.com Inc.’s customer relationship management services, including services from Zendesk Inc. and ServiceNow Inc., Walker said. He also plans to expand into Europe, and he’s looking closely at tackling the call center business.

The company recently has beefed up its board as well as its executive ranks. In late November, Andreessen Horowitz General Partner Marc Andreessen joined as a director. Last month, it added a new chief financial officer and vice presidents of client solutions and commercial sales.

Dialpad has raised $53 million in several rounds from Google Ventures, Andreessen Horowitz, Amasia, Felicis Ventures, SoftBank and Work-Bench.