Vonage CEO Speaks Out on SMB UCaaS Trends

We talked recently about UC trends with Vonage CEO Alan Masarek who has been at the company’s helm since November 2014. Our interview followed the company’s recent $25.25 million acquisition of Simple Signal, a service provider offering Unified Communications-as-a-Service (UCaaS) for small and medium businesses (SMBs). Simple Signal uses the same BroadSoft BroadWorks platform used by Telesphere, another UcaaS company that Vonage acquired about late last.

Masarek noted that in the 18 months since Vonage has been selling business VoIP and UC services, growth has been very good. Vonage expects business customers to contribute 25% of Vonage revenues in 2015, representing a growth rate of 40% for the year. The business customer also tends to churn less than the traditional Vonage consumer base, also contributing to solid growth. The Vonage consumer brand continues to do well, contributing the scale, cash flow, and profitability needed to help Vonage expand its business portfolio.

Vonage offers business service on two platforms. For the customer with less than 25 lines, the platform Vonage acquired when it bought Vocalocity on late 2014 is well suited. Vonage is selling services on the Vocalocity platform to more than 3,000 new logos every month. For customers with more lines, who need the full service suite that BroadWorks supports, for those who typically have multiple locations, the Broadsoft platform used by Telesphere and Simple Signal is a better fit.

When asked what customers expect in the future, Masarek said his customers want more mobile, more devices supported, and more accessibility that is both multi-modal and device agnostic.

Masarek’s outlook for Vonage business services is bright, and he concluded by saying that Vonage is a “marketing machine” that is going after a “still underpenetrated market.” His parting words: “We completely embrace the small customer.”

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