Ericsson’s acquisition of Vonage: short or long-game?

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By Dimitris Mavrakis | 4Q 2021 | IN-6374

 

Ericsson acquires Vonage

NEWS


Vonage is a US-based cloud communications provider that started in the consumer and Small-Medium Enterprise (SME) domain in early 2000 to offer Voice over IP (VoIP) services. At that time, voice services were still the biggest revenue driver for carriers and Vonage offered an alternative approach to bringing voice to homes and businesses. The company has since then grown to offer enterprise services and has acquired several companies to progress its enterprise strategy. Vonage reported US$1.25bn revenues for the 2020 financial year and $170m, indicating a healthy business. The cloud communication provider has also created a global developer ecosystem with more than 1 million developers and has created a global API-based platform with sourcing agreements with more than 200 global communication system providers.

Ericsson on the other hand, is a Swedish Tier-1 cellular infrastructure vendor that is considered the leading company in 4G and 5G networks and now aiming to break in the enterprise domain. The US market is by far the most lucrative one for Ericsson, especially now that geopolitical c…

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