Analysts

"In the past 18 months, Vonage has doubled down on a strategy of developing its own applications and running them over a single platform. Vonage’s strength in this year’s scorecard comes from the work it has done to bring its three core areas—UCaaS, CPaaS, and CCaaS—together on the One Vonage Platform, which optimizes programmable communications to meet the unique requirements of individual businesses. We view this as a considerable competitive advantage for the company."

"Vonage spent 2018 making key acquisitions, including TokBox and NewVoiceMedia, so that it now offers complete, end-to-end communications solutions," said Jim Lundy, CEO and Lead Analyst, Aragon Research. "Vonage has always been known for its prowess in voice, but its complete makeover as a UCC provider means more existing customers can look to Vonage for their enhanced UCC portfolio for current and future needs."

"Vonage offers a unique combination of best-of-breed unified communications, communications APIs and most recently, contact center solutions, to create an all-encompassing and extensible communications portfolio," said Michael Brandenburg, Industry Analyst, Connected Work. "While traditional UCaaS competitors strive to incorporate CPaaS into their existing solution sets, Vonage can focus on developing innovative communications and collaboration applications to enhance its existing products and services using its own communications API platform"

"By bringing programmable communications into its One Vonage platform, Vonage is redefining contact center and unified communications through APIs that enable organizations to customize their own applications," said Raul Castanon-Martinez, Senior Analyst for Workforce Collaboration & Communications at 451 Research. "This vision aligns with key attributes in our framework for the software-defined business communications ecosystem, including tight integration to business workflows and enablement of intelligent interactions, making its inclusion as a 451 Firestarter well deserved."

"Just four years after shifting its focus to the business segment, Vonage's strategy is showing strong results. The company is set to surpass $1bn+ in annual revenue for the first time this year, with business customers accounting for nearly 60%. The company will face intense competition from other players that are also incorporating CPaaS into their product roadmaps. However, its early start as a VoIP provider and its innovative approach – with CPaaS at the heart of One Vonage – place Vonage one step ahead and in a good position to benefit from the growing relevance that programmable communications will have for customer and employee interactions."

"The One Vonage Platform is a highly-programmable global network that delivers the core communications elements—telephony, video, and messaging—built to serve Vonage’s own user-facing UC and CC applications, facilitate business application and workflow integrations, and expose APIs to these communications elements for third-party developer consumption. Vonage faces competition in each of these individual areas, but very few providers can offer a single homogeneous platform."

"By reaching for NewVoiceMedia, Vonage is asserting that the future of business communications requires a unified technological platform for all channels – especially voice – that connect contact centers directly to their knowledge worker peers in other departments."

"Already a strong provider in programmable SMS, voice and IP messaging, this strategic move by Vonage builds out its portfolio of cloud communications capabilities. TokBox extends Vonage's ability to gain share in the fast growing CPaaS market with a set of interactive video APIs and a customer base that proves the value of programmable video communications"

"The healthcare industry is experiencing significant change in federal and state regulations and standards. At the same time, these businesses are making massive investments in digital transformation to modernize and ensure the privacy and security of health information within the ways that they communicate and connect with patients and caregivers, businesses are looking to communications solutions providers to enable seamless, secure interactions. With this HITRUST certification, Vonage continues to prioritize its dedication to compliance and security for its customers."

"Vonage has been on quite a roll of late. It recently announced the release of Vonage Business Cloud; its team messaging application, Flow; and now TokBox, giving it a hat trick of needle-moving news this year alone. The Vonage led by CEO Alan Masarek, who joined the company in late 2014, has had a nice mix of acquisitions and home-grown innovation to fuel product growth, and financial results speak for themselves.

Since acquiring Nexmo, for example, Vonage has seen its stock price nearly triple.

The addition of video via TokBox should fuel another wave of growth for a company that I believe is the most undervalued of the publicly traded Cloud Communications providers."

"Vonage temporarily confused many industry watchers when it acquired Nexmo in June 2016. At the time, the UCaaS industry was all about providing software services or applications, not development tools.

By contrast, CPaaS offers building-blocks or tools that add pay-as-you-go communications services into applications, websites, and connected Internet of Things (IoT) devices. With the acquisition, Vonage had crossed an imaginary line into an adjacent sector.

By blurring these boundaries, Vonage emerged as a cloud-delivered communications provider that enabled its customers to build, purchase, and customize applications."

"By integrating unified communications capabilities with contextual communications embedded into website, productivity and vertical software via APIs, Vonage is positioned to drive better business outcomes for its customers.

Using cloud communications in this way can lead to accelerated decision making, enhanced employee productivity, increased speed to market, improved customer satisfaction and increased profitability for businesses.

Frost & Sullivan's independent analysis shows Vonage solutions provide compelling price/performance value with solutions tailored to large enterprises with hundreds to thousands of users as well as to small and medium business"

"The acquisition of TokBox should help Vonage solidify its position as a CPaaS provider, expanding its portfolio with support for WebRTC. This should place Vonage in a position to benefit from the expected surge in demand for real-time web communications. The deal reflects a larger consolidation trend in the space, with large vendors going after smaller emerging providers to expand their market footprint. We also expect further consolidation driven by vendors looking to expand their CPaaS offerings by targeting specialized CPaaS providers, as in the case of TokBox."

"Vonage’s CPaaS offering is largely based on its acquisition of Nexmo in May 2016 and its recent acquisition of video CPaaS provider TokBox. In addition to cloud-based messaging and voice APIs, it leverages the Vonage network, direct-to-carrier connections and global reach to provide a broad portfolio of APIs that enable voice, SMS, chat and two-factor verification services. The company aims to transform itself into a next-generation business communications platform with capabilities for employee and customer engagement, enhanced with programmable communications."