Vonage Walks the Tok

Acquires TokBox to move into programmable video -- a smart move when cloud is converging and video is booming.
Vonage yesterday announced that is has acquired TokBox from Telefόnica for $35 million. While UC analyst Zeus Kerravala covered the acquisition and the components of TokBox's OpenTok platform in a separate No Jitter post, there's more to be said about the value the company will bring to Vonage.
This acquisition brings WebRTC and programmable video capabilities to Vonage, which will compete with other programmable video providers such as Vidyo, Twilio, Ribbon Communications, and Temasys. It's a complementary addition to Vonage, which acquired Nexmo, a communications-platform-as-a-service (CPaaS) provider in 2016.
I like this acquisition for several reasons, but two big ones stand out: Cloud-delivered services are converging, and video is booming.
Cloud Convergence
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.
Over the following months, the idea didn't seem so radical. By blurring these boundaries, Vonage emerged as a cloud-delivered communications provider that enabled its customers to build, purchase, and customize applications.
For example, Last month Nexmo announced partnerships with artificial intelligence (AI) players including Amazon Lex, Google Cloud Speech and Dialogflow, and Microsoft Azure Cognitive Services Translator, as well as leading bot platforms such as i2x, MuleSoft, OneReach, Over.ai, VoiceBase, and Voicera. While these partnerships can be used by developers to extend any app, Vonage also pre-built integrations into its CXOne (CCaaS) and Vonage Business Cloud (UCaaS). This gives its application customers the ability to customize and extend their applications without custom development.
Vonage Nexmo has already made several open-source contact center modules available, and WebRTC modules will be highly complementary. For example, many organizations are looking to add video capabilities to their contact centers. We can expect Vonage to offer an integrated WebRTC video solution that will align with its open-source skills-based router it published last March.
Going beyond CPaaS, expect Vonage to use TokBox to strengthen its applications as well. In 2017, Vonage added Amazon Chime for audio, Web, and video conferencing to its portfolio. Although Chime filled a conferencing gap, it's not tightly integrated with other Vonage services. I foresee Vonage creating a richer video conferencing service for Vonage Business Cloud (and CXOne).
Video is Booming
According to IDC, the U.S. programmable video market will be a $7.4 billion opportunity by 2022, representing more than a 140% four-year CAGR. Vidyo and TokBox essentially created video optimized services. The video opportunity is large, but often obscured. Most CPaaS providers remain focused on voice and messaging services, and most UCaaS providers don't see use cases beyond video chat and conferencing.
Consider Doorbot, which reimagined the residential doorbell. In 2013, Doorbot introduced the idea of a doorbell that established a cloud-connected video session to a smartphone. Doorbot evolved into Ring, and Amazon acquired it earlier this year for $1 billion. As another example, consider Netgear, which used its networking skills to create IP-connected cameras. Its portfolio has been so successful that Netgear put its video solutions into a separate company called Arlo, which recently filed for an initial public offering.
Cameras are everywhere, and the use of them continues to grow. Logitech just reported that its video unit grew by more than 60% last quarter. A programmable video service provides general tools to leverage these cameras in a variety of uses cases including security, analytics, conferencing, and monitoring. The timing is excellent; the WebRTC wars are over.
With an increase in cameras and connectivity, there's also an increase in programmable options. Last year, Vidyo launched a video-optimized platform service that is building momentum, particularly within healthcare and customer engagement use cases. In 2016, Twilio acquired WebRTC media processing technologies and the team associated with the Kurento open source media server. But even with these moves, most CPaaS providers remain focused on voice and messaging services.
As connectivity and cameras increase, it's inevitable that so will video-enabled applications. There's tremendous growth opportunities. For example, despite a decade of omnichannel, the majority of contact center interactions are still over voice. But the benefit of enhancing voice with images is illustrated by U.K. company Endsleigh Insurance, which allows customers to send photos as part of its process for low-value claims. Considering that most customers are now calling from camera-equipped smartphones, it's inevitable that video-enabled interactions are coming.
Source: nojitter

Latest Jobs
-
- Identity Channel Partner Manager | London
- London
- N/A
-
Identity Channel Partner Manager | London Location: South East UK (commutable to London) We are working with a Cyber Security business who are looking for a Channel Partner Manager to drive and grow relationships across their identity ecosystem. Prior experience working within VARs, distributors, vendors or resellers in the identity space is essential. You must have experience working with technologies such as CyberArk, Sailpoint, Okta etc Responsibilities will include, but not be limited to: Build, maintain and develop strong relationships with channel partners. Work closely with partner sales teams to support growth drive sales opportunities. Identify and onboard new partners while strengthening existing partnerships. Act as the key point of contact for all channel-related activity. If you are an experienced channel professional, with experience in the Identity space and are ready for your next challenge, apply today.
-
- Service Architect- DACH regions
- Germany
- Upto €110,000 plus bonus and benefits
-
Lead Service Architect with the authority and experience to take control of complex, multi-million-euro outsourcing bids. This role is about leading the Service/ solutioning effort, bringing structure to chaos, and driving the entire bid team to deliver winning proposals. The company area a global managed services business working with enterprise and public sector clients, across Cloud, End-User Computing, Digital Workplace, Service Desk, and Network Infrastructure. What You’ll Do: Lead Service/ solution design from qualification to contract. Control bid teams — architects, pricing, delivery, and SMEs. Break down RFPs/RFIs into actionable, costed, client-ready solutions. Present internally and to clients at decision-maker level. Run solution workshops, own the architecture, and shape the financial model. You’ll Need: Experience working as a Service architect, Service Manager or Customer Success Manager R Gravitas to lead and drive teams through high-stakes bids. Deep knowledge of managed services delivery and commercial models. Strong technical grasp: Cloud, Security, EUC, Unified Comms, Service Desk, and more. Experience leading deals across onshore, offshore, and hybrid delivery models.
-
- Deal Architect- DACH region
- Germany
- Upto €110,000 plus bonus and benefits
-
Lead Deal Architect with the authority and experience to take control of complex, multi-million-euro outsourcing bids. This role is about leading the solutioning/ Service effort, bringing structure to chaos, and driving the entire bid team to deliver winning proposals. The company is a global managed services business providing solutions to enterprise and public sector clients, across Cloud, End-User Computing, Digital Workplace, Service Desk, and Network Infrastructure. What You’ll Do: Lead the deal from qualification to contract. Control bid teams — architects, pricing, delivery, and SMEs. Break down RFPs/RFIs into actionable, costed, client-ready solutions. Present internally and to clients at decision-maker level. Run solution workshops, own the architecture, and shape the financial model. Be responsible for the service Wrap and ensuring the Service meets clients requirements You’ll Need: A back ground with IT Services Experience in a similar type of role, for example: Deal, Service, or Solution Architect in ICT outsourcing. Gravitas to lead and drive teams through high-stakes bids. Deep knowledge of managed services delivery and commercial models. Strong technical knowledge: Cloud, Security, EUC, Unified Comms, Service Desk, and more. Experience leading deals across onshore, offshore, and hybrid delivery models.
-
- Pre Sales Lead- IT Services
- Germany
- Upto €100,000 plus benefits
-
As the Pre-Sales Lead (Sales Engineer/ Solution Architect) you will drive large-scale ICT managed services and outsourcing deals (from €0.5M to €20M+). You'll work directly with Business Development and clients to design high-impact solutions across Cloud (Azure, IaaS, SaaS, PaaS), EUC, Unified Comms, Security (SIEM, PAM), Networks, and Smart Workplaces. What You’ll Do: Lead the end-to-end pre-sales cycle — from RFI/RFP to contract. Design innovative, client-specific solutions with technical & commercial impact. Present at CxO level and steer proposal strategies & financial models. Collaborate closely with Portfolio, Service Desk, Field, and Digital Workplace teams. Support deal shaping with strong knowledge of ITIL, SIAM, Automation, and cost analysis. What You’ll Bring: Have strong experience in pre-sales or solution architecture. Experience with €M+ managed service deals. Deep technical expertise in modern ICT stack and enterprise IT services. Strong German (C1) and English communication skills. Certifications: ITIL v3/v4 required; SIAM, ISO20000 desirable.