Metaswitch names new CEO, eyes new markets, growth

Metaswitch Networks today named former Redback Networks CEO Kevin DeNuccio as its new chief executive officer, with the new CEO saying the company is poised to grow strongly by extending into new markets and product opportunities in the next three to five years.

DeNuccio replaces current CEO John Lazar, who takes on the role of chairman. Lazar, who was named CEO about a year ago, is based in the London. Currently only about one-third of Metaswitch employees are U.S-based, but look for that number to grow as the company seeks to grow market share here, including placing a greater focus on tier one carriers.

Calling it a “very unique time in the industry,” DeNuccio in a conference call this morning pointed to the onslaught of the mobile Internet and ongoing industry consolidation as key market drivers. He pointed to Metaswitch’s size and profitability, multiple product revenue streams and sales relationships not only with carriers but other equipment manufacturers as well as the company’s baseline. “We can really create a player in the industry that is badly needed,” he said, “[one] that plays off our deep voice and IP expertise and can truly be an agile innovator in the industry.”

Moving forward, DeNuccio said he is looking to make Metaswitch a more global company and pointed to new product opportunities in mobile data; social networking and the intersection of IP and voice; and the virtualization of applications and networks. Moves into those markets may come from internal engineering work, or via acquisition, DeNuccio said.

In addition to Redback (now part of Ericsson), DeNuccio spent time at Cisco’s service provider division, and at Bell Atlantic (now Verizon). At Redback, as CEO, he oversaw the company’s growth into a $2.1 billion player. At Cisco, as senior vice president, he grew its worldwide service provider division from a $500 million, 500-person organization to $4 billion and 4,000 employees in four years.

DeNuccio has been an independent director on the Metaswitch board since December 2008, and said his time in that role convinced him of the opportunity in front of the company.

Former CEO Lazar, who stays on as chairman, answered the “why now?” question. “What we’ve been grappling with is making sure we can catapult ourselves into the next phase of growth,” Lazar said. “The timing for us is that we came through the economic crisis and recession very well…we just see a huge opportunity.”