In this episode of the SaaS Revolution Show our host Alex Theuma is joined by Mike Tessler, Managing Partner at True North Advisory and founding CEO at BroadSoft.

Mike shares:

  • The BroadSoft journey: from its founding in 1998, to going public on Nasdaq in 2010, and being acquired by Cisco in 2018 for +$1.8B.
  • The process behind the decision to sell BroadSoft to Cisco.
  • Three key lessons from scaling the business to +$500M ARR.
  • How to build a realistic execution plan and hold teams accountable.
  • Why senior leaders have to act as ambassadors as a company grows.
  • BroadSoft’s secret to success with go-to-market partners.
  • The biggest partner technology challenge the industry is facing.
  • How he handled feelings of loneliness when at the top.

Watch (or listen) below or read on for key takeaways:

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The BroadSoft story

Founded in 1998, BroadSoft was born before “SaaS” or “Cloud” became mainstream terms. Back then, selling enterprise communications tech through service providers—who white-labeled the product—was a novel move.

By the time BroadSoft went public in 2010, it had hit $100M in revenue—then considered the minimum benchmark for IPO. Eight years later, the company had:

  • 2,000 employees across 23 countries
  • Customers in over 80 countries
  • Reached $500M in ARR
  • Exited to Cisco for just under $2B

We spoke to Mike about some of the decisions, processes, and learnings that made it happen.

Scaling BroadSoft to $500M

Strategy and execution

“Execution is attention to detail. There’s no magic to it.” 

Early on, Mike started an annual strategy review process. Each year, the leadership team came together and critically examined the company’s product, customer feedback, market dynamics, and competitive landscape.

From here, they developed five directional statements outlining what they wanted to accomplish over the next year. From here,  leaders and their teams went away to build their plans for delivering on them.  

This clarity paved the way for focused (and realistic) execution plans—and made accountability a cornerstone of the company’s culture.

With everyone invested in and accountable for their own execution plans, the company was able to hit its target for eight years as a public company–something which drove the business cash flow, R&D investment, and ultimately, its exit valuation.

Building a successful partner-led GTM strategy

While many SaaS founders struggle to build successful channel programmes, BroadSoft’s partner-first approach was the key to their success. They initially sold exclusively through service providers, with zero channel conflict.

Mike credits their success to one thing: tight alignment.

“We made it very clear… BroadSoft success is dependent on the partner’s success,” Mike explained. “We went out of our way to help, training their sales teams, attending leadership events.”​

Hiring and culture

Scaling from 5 to 2,000 employees meant constant reinvention—from leadership and operations to internal communication. 

Eventually, BroadSoft hired a Chief Transformation Officer whose full-time job was keeping the team aligned—across countries, departments, and cultures.

Alongside the Chief Transformation Officer, Mike too dedicated more time to People, internal comms, and company culture as they navigated:

  • Constant evolution in leadership.
  • The shift from informal hustle to scalable process.
  • Cultural nuances across 23 countries.
  • The increased importance of internal communication.

The exit process: Selling to Cisco

The sale to Cisco was a long process that originally started when the team explored a shift to a direct sales model. As BroadSoft began evaluating acquisitions to accelerate that transition, the process led them to private equity firms and resulted in 16 potential buyers.

Like many exits, the process took longer than anticipated. Taking matters into his own hands, Mike forced a decision:

“I told the board: the bids are due Wednesday, we’re picking Thursday. Or we go back to business.”

Ultimately, out of three final offers, Cisco’s bid won—not because of price, but because it felt like the right home for the tech, the customers, and the team.

Hear more from Mike at SaaStock USA

Mike is joining our stellar lineup of SaaStock USA Founderpath Center Stage speakers including Alina Vandenberghe (Chilipiper), Savneet Singh (PAR Technologies), and Rahul Vohra (Superhuman) in Austin this May 13-14.

In an interview, Mike will go deeper into the BroadSoft journey, sharing his biggest learnings from scaling to $500M ARR, taking the company through IPO, and the processes behind its $2B exit to Cisco.

If you’re serious about scaling your SaaS in 2025, you need to be there.

Tickets are selling fast! Get your tickets now.