M5 Networks

The company's business model was centered on providing enterprise-grade communications on a subscription basis, a move away from the traditional on-premise hardware model. This recurring revenue structure was a key part of their strategy, designed to build long-term, saleable value. M5 targeted business customers, and by the time of its acquisition, it served over 2,000 companies. A core element of M5's strategy was its decision to develop its own proprietary software, the M5 Call Conductor, rather than relying on third-party platforms. This gave them greater control over the customer experience and the ability to roll out features like M5 Connect for integrating with applications and M5 Mobility for iPhone.

A significant milestone in the company's history was its acquisition by ShoreTel in February 2012 for approximately $146 million. This move was strategic for both parties; M5 gained access to a larger brand and capital, while ShoreTel, a provider of on-premise phone systems, instantly gained a tested and established cloud-based UC portfolio to compete in the growing cloud services market. Following the acquisition, M5 Networks was operated as a new ShoreTel business unit, initially named the ShoreTel Cloud Division, with Dan Hoffman continuing to lead as president and general manager.