Industry Analyst Jeff Kagan on Vonage Acquiring Vocalocity for Business Sales

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Technology Industry Analyst Jeff Kagan is available to speak with reporters, or may be quoted through this release.

Jeff KAGAN, Industry Analyst

Technology Industry Analyst Jeff Kagan is available to speak with reporters, or may be quoted through this release.

Vonage, a VoIP phone company is acquiring Atlanta based Vocalocity, says the Atlanta Journal-Constitution, Oct. 10.

Tech analyst Jeff Kagan offers comment.

“Vonage has come a long way since it’s bumpy start several years back. In recent years its course has been much smoother thanks to CEO Marc Lefar. However Vonage is mostly a consumer-based voice over IP phone business. They have not had as much success in the business market. That’s why I think Vonage is acquiring Vocalocity. They want to start seeing the same kind of success in their business side,” says Principal analyst Jeff Kagan.

Vocalocity is a small Atlanta startup, which offers phone services to the small and mid sized business community.

“Vonage with Vocalocity sounds quite a bit like another company called RingCentral, who also sells VoIP telephone and communications services to the business community. VoIP is a growing opportunity. I am actually quite surprised that Vonage has not made more headway in that sector themselves," says Kagan.

Vonage has said the voice business for small and mid size companies is worth rougly $15 billion and accounts for 32 million phone lines. They also say rougly 85 percent of small companies get their phone service from major players.

That means they want to win business from companies like AT&T, Verizon, CenturyLink, Windstream and TW Telecom, and they will compete with other smaller companies like RingCentral.

“This deal should be done by the end of the year, and after that it will be interesting to see what Vonage does differently in the space. There is a large opportunity and they are in a good position so far. However with competitors like RingCentral and others, I expect this segment to start getting very interesting to watch. Stay tuned,” says Kagan.

About Jeff Kagan

Jeff Kagan is a Technology Industry Analyst, consultant and columnist who is regularly quoted by the media over 25 years.

He offers comment to reporters and journalists on wireless, telecom, Internet, cable television, IPTV and other tech news stories.

Kagan is also known as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst.

Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.

Clients: Contact Kagan to discuss becoming a client. He has worked with many companies as consulting clients over 25 years.

Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.

Visit his website: at jeffKAGAN.com to learn more and for disclosures.

Twitter: @jeffkagan

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