Vonage Write-Down Could Signal Internal, Channel Strife

We got the channel's reaction to the news of Ericsson's $1.1 billion write-down of Vonage, which it bought two years ago.

Moshe Beauford, Contributing Editor

July 8, 2024

7 Slides

Two years after acquiring unified-communications-as-a-service (UCaaS) provider Vonage, Ericsson has issued its second write-down of $1.1 billion following weak guidance for the Vonage portion of its business.

Last October, Ericsson issued its first Vonage write-down, totaling some $3 billion, something Jon Arnold, unified communication and collaboration (UCC) analyst, and principal analyst at J Arnold & Associates, said isn’t a good sign.

"I am not hearing very much from Vonage these days. We're not getting a lot of updates, news, nothing that's moving the needle, so clearly they are struggling," Arnold told Channel Futures.

J Arnold & Associates' Jon Arnold

From a channel perspective, Arnold shared that he sometimes wonders if the Ericsson acquisition made sense.

"That ownership could very well be hindering Vonage when it comes to the channel, in the core market that it is known for," the analyst said. "That's UCaaS, contact center as a service (CCaaS) and communications platform as a service (CPaaS). I wonder if the channel is working hesitantly to push more when the competing options are more stable, more independent companies."

Channel Futures TV: Vonage's Reggie Scales tells Channel Futures editorial director Craig Galbraith that Vonage is "all-in" on AI, combining it with its business communications platform to create a holistic offering for channel partners.

Related:Twilio, Vonage, Among CPaaS Providers in 2024 Gartner Magic Quadrant

Arnold is referring to companies like Microsoft and its Teams offering.

"When you throw Ericsson into the picture, I can see how that might spook a few people when chasing new business," Arnold said.

Ericsson/Vonage had not responded to our request for comment by publication time.

Check out our slideshow above, which has channel reaction to the recent news of a Vonage write-down. 

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About the Author(s)

Moshe Beauford

Contributing Editor, Channel Futures

Moshe has nearly a decade of expertise reporting on enterprise technology. Within that world, he covers breaking news, artificial intelligence, contact center, unified communications, collaboration, cloud adoption (digital transformation), user/customer experience, hardware/software, etc.

As a contributing editor at Channel Futures, Moshe covers unified communications/collaboration from a channel angle. He formerly served as senior editor at GetVoIP News and as a tech reporter at UC/CX Today.

Moshe also has contributed to Unleash, Workspace-Connect, Paste Magazine, Claims Magazine, Property Casualty 360, the Independent, Gizmodo UK, and ‘CBD Intel.’ In addition to reporting, he spends time DJing electronic music and playing the violin. He resides in Mexico.

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