It's funny to hear about this from a blog of the CEO of one of Jaxtr's competitors, Jangl, but Michael Cerda breaks the news anyway. Good news for the VoIP industry that more money is flowing in from venture capitalists.
The funding of a competitor isn't the real story in Michael Cerda's post-which I recommend you read. The real story is how Jangl differentiates itself from Jaxtr.
I get the sense Michael doesn't really view Jaxtr as a competitor. Surely, Jangl and Jaxtr are doing very similar things in almost the same way, even. That's where the confusion lies. The real difference in execution. Jangl and Jaxtr are essentially going after different customers. Jaxtr seems to be hitting the "if it's free, it's me, if I gotta pay, no way" crowd versus Jangl's approach of getting baked into the fabric of online communities and social networks.
If you look at the key part of each of the websites, I think the differences speak for themselves:
I think Jangl's got the better strategy. What do you think?
{ 4 } Comments
Dameon,
thanks for the note about the funding here.
Just curious how on earth will jaxtr make money? They enable free calls but who pays for them in the end – I don’t get it.
Hope you can shed some light on it.
George
Dameon, you are right. He who thinks that free will last is in for a surprise. Eventually even $25m of VC money runs out. But if you got the customers addicted to free calls, you are in a problem. I blogged about this illusion many times for example here http://www.flatplanetphone.com/wordpress/?p=278
I think those of us in the VoIP Blogosphere wonder how Jaxtr is going to survive, George. They certainly don’t appear to have a winning business model.
You’re right, Moshe, there’s no such thing as a free lunch.
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