VocalTec is the grandfather of VoIP and was just getting started when I got into this business. They looked unstoppable then and did very well over the next 8 years. 2+ years ago, right around the time my partner and I founded Xten, SIP started making it’s presence felt. VocalTec was one of the companies who did not pay much attention to SIP and stuck with their primary H.323 offerings.
The decision not to move forward with SIP is haunting them, it’s looking like they are going to have to start cutting back substantially unless they can get a cash injection. We all know what happens when most small-med size companies cut-back, the death spiral usually follows closely behind.