Overview:  Trusting your business communications to a cloud provider takes a leap of faith as the technology and the companies providing it do not have a long history. The names of the providers are not typically recognized brand names. And there have been some early hosted PBX company failures. So, it’s vitally important to select an organization that is stable, has a solid history and an excellent reputation.

Years in Business

RingCentral: RingCentral was founded in 1998.

TeleDynamic: TeleDynamic was founded in 1979.

Profitability

RingCentral:  RingCentral is a publicly traded company (NASDAQ: RNC), offering a single product, their hosted PBX. Since its inception, the company has lost $143,000,000.

TeleDynamic:  TeleDynamic is a privately-held profitable company with diversified income sources including hosted PBX, maintenance plans and SIP trunking.

Local References Providing On Premise Visits

RingCentral:  RingCentral will not bring prospects to visit their existing customers.

TeleDynamic:  Since TeleDynamic’s customers are local California businesses, the company welcomes prospects to visit them and see the solution work firsthand.

Yelp Reviews

RingCentral:  ** Customers give RingCentral a two star rating.

TeleDynamic: ****  Customers give TeleDynamic four star rating.

Better Business Bureau Annual Complaints (2012)

RingCentral:  52 complaints registered.

TeleDynamic:  No complaints registered.

Disparagement Clause

RingCentral:  In what can only be considered a bizarre business tactic, RingCentral actually has a clause in their terms and conditions that explains that if a RingCentral customer disparages them, RingCentral can disconnect their service.  Here is an excerpt:

You agree not to directly or indirectly through a third party engage in any conduct or make any communication (public or private) that disparages RingCentral or the Applications or Services in any way. Such communications include, but are not limited to, publishing, posting, printing, disseminating, or otherwise making such disparaging statements on or through the Internet, in any blog, or through any other form of social media. You further agree not to solicit or encourage, directly or indirectly, any such statements, comments, or communications by any third-party. In accordance with the termination provisions below, RingCentral may terminate your access to the Applications or Services if You breach the requirements of this section.

In other words, if you say something negative, your RingCentral service may be cut off.  That would seem to be a violation of the First Amendment…and one hell of a way to conduct business.

TeleDynamic: TeleDynamic has no type of disparagement clause. This seems to be a uniquely RingCentral attribute.  

Summary

RingCentral: RingCentral has been in business for 11 years, is publicly traded and is a somewhat recognized name in the San Francisco Bay Area. However, the company has yet to turn a profit, has substantial negative customer press and has an odd concern over customers saying bad things about them.

TeleDynamic: TeleDynamic is a privately held company in business for 35 years. It has generally good customer feedback on the web and has never had a Better Business Bureau complaint.

Conclusion: RingCentral wins on brand recognition and size. TeleDynamic has a much stronger service reputation and is a profitable going concern. It also does not have legal terms that explain if a customer says something negative, they will be disconnected.