Mobile workforce using public Wi-Fi and unsecured home networks is a serious security hazard, warns cybersecurity expert.

The pandemic forced millions of workers to leave their offices and work remotely, creating new cybersecurity challenges for companies globally.

Cybercriminals took notice, causing companies to experience record-setting losses brought about by data breaches.

However, remote work is not a passing phenomenon - according to Gartner, 51% of knowledge workers will work remotely by 2022, which is a 24% increase when compared to 2019.

If remote work meant working from home at the beginning of the pandemic, it is now changing towards working from anywhere. Cybersecurity-wise, this means that an increasing number of workers will access their work networks through vulnerable networks, and additional security measures have to be put in place to mitigate the connected risks.

WFA: the dangers of public Wi-Fi and unsecured remote locations

The switch to home offices left managers dealing with several cybersecurity threats stemming from unsecured home devices and networks, as well as unprotected internet traffic.

When the majority of employees work from a single location, there is only a need to protect the main network - which is less demanding than protecting as many endpoints as there are employees.

The problem becomes even more evident once employees are not working from a fixed location like home but are, for example, traveling while working and have no choice but to use public internet access.

"Adapting to working from home was a challenge to cybersecurity personnel everywhere, but the growing trend of working from anywhere entails a new set of threats to consider," said Algirdas Sakys, Information Security Manager at NordLayer. "Working from anywhere usually means using unencrypted public Wi-Fi, which can lead to information being intercepted, malware being distributed. There is an array of ways in which hackers exploit unsecured public networks, and businesses have to adapt their cybersecurity strategies accordingly."

The Castle-and-moat approach to cybersecurity is no longer viable

Since every remote employee is a potential threat to the integrity of a given company's data, businesses are shifting their cybersecurity strategies away from the castle-and-moat approach. Now, network security solutions based on the Zero Trust principle are replacing traditional, static defense strategies.

In the Zero Trust framework, the given network is protected by granting users and devices access to only those parts of the network that are essential to their task. In such a system, every user is authenticated before being allowed to access the needed data through an encrypted tunnel. Because of this, even if a device gets compromised, it can't cause network-wide damage.

Organizations that have Zero Trust-based system in place enhance their cybersecurity in three key areas: secure access, secure browsing, and increased cybersecurity training opportunities, added the NordLayer expert:

"First, a comprehensive security framework of this kind allows the remote employees to safely connect to the company network without putting the whole network at risk. Second, web browsing becomes considerably safer, allowing cybersecurity personnel to ensure employee browsing habits are not potentially harmful to the company. Finally, due to the automated nature of Zero Trust-based systems, managers gain more time to educate their personnel on best cybersecurity practices, which is crucial because defrauding humans is one of the chief enablers of successful cyberattacks."

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Further Reading:

• Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
• Read more about Cyber Security on Field Service News @ www.fieldservicenews.com/cyber-security
• Read more about the impact of COVID-19 on FSN @ www.fieldservicenews.com/covid-19
• Find out more more about NordLayer @ nordlayer.com/
• Learn more about NordLayer @ twitter.com/NordLayer

Topcon Positioning has announced its MC-Max machine control solution.

Based on its MC-X machine control platform, and backed by Sitelink3D — the company’s real-time, cloud-based data management ecosystem — MC-Max is a scalable solution for mixed-fleet heavy equipment environments. It is designed to adapt to owners’ machine control and data integration needs as their fleets and workflows expand.

THE MC-MAX SOLUTION OFFERS FLEXIBLE MOUNTING SOLUTIONS, AS WELL AS OPTIONAL AUTOMATIC BLADE AND BUCKET CONTROL FOR A VARIETY OF MACHINES

The flexible service options include Realpoint, the Real-Time Kinematic (RTK) service, and Starpoint, a Precise Point Positioning (PPP) service. The different services have varying delivery methods, coverage, and reliable centimeter-level accuracy. Under a flexible subscription model, customers can purchase to suit their needs. Additionally, an RTK service supported by PPP, Skybridge, is available to maintain connectivity and productivity if the customer temporarily leaves RTK coverage.

MC-Max increases processing power, speed, accuracy, versatility and reliability; and can be installed on a full range of dozers and excavators, using the same basic modular components. Modern, redesigned user and product interfaces were developed based on real-world applications and customer feedback and provide a simplified and immersive user experience that allows operators to learn the system easily.

“With MC-Max, we’ve created a solution that is flexible and can continue to grow as a contractor’s needs and capabilities expand,” said Jamie Williamson, executive vice president, Topcon Positioning Group. “This new solution provides improved scalability and precision in the field and offers business owners real-time data integration, connectivity and resource management capabilities across their entire workflow.” The MC-Max solution offers flexible mounting solutions, as well as optional automatic blade and bucket control for a variety of machines. The system also provides a full battery of positioning technologies ranging from slope control to laser, multi-constellation GNSS, robotic total station and Millimeter GPS systems.

MC-Max provides project managers a real-time view of machine positions, activities and onsite progress, and is compatible with a wide range of site communications systems.

For more information on MC-Max and the MC-X Platform, visit www.topconpositioning.com/gb/

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Further Reading:

• Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
• Read more about Automation on Field Service News @ www.fieldservicenews.com/automation
• Read more about Topcon on Field Service News @ www.fieldservicenews.com/topcon
• Learn more about Fleet Technology @ www.fieldservicenews.com/fleet-technology
• Find out more more about Topcon Positioning @ www.topconpositioning.com
• Follow Topcon on Twitter @ twitter.com/topcon_today

The future of the UK drone industry, one of Britain’s prime opportunities for growth, and many other UK-based manufacturing exporters, will be severely threatened once the UK’s eligibility for the EU’s CE accreditation regime expires at the end of December 2022.

Robert Garbett, one of the world’s leading advisors on drone technology and Founder and Chief Executive of Drone Major Group Limited, today warned the UK Government of the need to speed up post-Brexit accreditation and establish a clear pathway to United Kingdom Certified Assessed (UKCA) accreditation ahead of the fast-impending deadline. 

VITAL UK INDUSTRIES THAT INCREASINGLY RELY ON DRONE TECHNOLOGY ARE FACING UNCERTAINTY

If an alternative UKCA accreditation scheme is not in place in the next 12 months, UK UAS (Unmanned Air Systems) businesses – including drone manufacturers and operators – risk being unable to trade within the global marketplace in the absence of the necessary new international regulatory accreditation. 

This pressing issue, if not addressed with greater speed, will have serious consequences for many UK manufacturers looking to sell their products internationally. The issue is set to be tabled for discussion in the UK Parliament later this month.

Robert Garbett commented: “We must not sleepwalk into this urgent issue. It is essential that the UK takes a clear, committed and consistent approach to the development of CA accreditation, something which would have a significant impact on the aviation and drone industries, and will also impact many others. The UK currently has no system in place for the certification of aviation materials and also drones, and with all CE Certification no longer valid, firms will have to return to EU certification providers to re-certify, at a great cost both financially, and to the detriment of UK PLC. We now face a potential cliff edge threat which requires urgent attention.” 

This has huge implications for many vital UK industries that increasingly rely on drone technology, including energy, agriculture, construction and rail.

Prior to Brexit, the UK utilised the (European Conformity) CE mark which ensured full compliance of a product with all applicable European health, safety, performance and environmental requirements. Post-Brexit however, the UKCA (UK Conformity Assessed) mark is now required for goods and products being placed on the market in Great Britain and currently covers most goods which previously required the CE marking, known as ‘new approach’ goods.

From the end of this month (December 2021), the UK will have just 12 months remaining of the ‘transitional period’ to introduce and develop the requisite accreditations to ensure global compliancy of UK products before the upcoming deadline for full compliance on 1 January 2023.  

Commenting on the timeline for the accreditation, Robert Garbett continued: “It is essential that a clear roadmap is established for the UK’s accreditation. The process of implementation in itself is already highly complex and, as it stands, it will be very difficult for a certification scheme to be established with United Kingdom Accreditation Service (UKAS) in time for the December 2022 deadline, unless the current pace is speeded up.

“The UK’s departure from CE certification post-Brexit, has created an opportunity for the UK to develop an acceptable means of compliance in line with emerging international standards. It has the potential to allow the UK to look outwardly, facilitating a faster pace of innovation in a move away from the more prescriptive approach taken by the EU’s CE accreditation.

“We must get this right to leverage one of the UK’s biggest opportunities for growth in a technology where if we move fast, we could lead the world.” 

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Further Reading:

• Read more about Parts, Pricing and Logistics @ www.fieldservicenews.com/parts-pricing-and-logistics
• Read more about the drone industry on Field Service News @ www.fieldservicenews.com/drones
• Read more about the impact of Brexit in the service industry @ www.fieldservicenews.com/brexit
• Learn more about Drone Major Group @ dronemajor.net
• Follow Drone Major Group on LinkedIn @ www.linkedin.com/drone-accelerator/

ServiceMax, Inc., a leader in asset-centric field service management, announces the launch of Spark 360, a fixed-scope, low-risk professional services implementation package that drives a prescriptive approach and condensed timeline for ServiceMax Asset 360 deployments.

Utilizing Asset 360's best practices and core business functions, Spark 360 is designed for fast implementation and rapid time to value so customers can quickly achieve increased service profitability, asset visibility, and agility as they transform their field service operations. Spark 360 also leverages the MaxApproach, an implementation methodology developed through hundreds of successful customer implementations, that delivers maximum efficiency throughout the rollout. 

“With global conditions rapidly changing on an almost daily basis due to COVID-19, supply chain disruptions, ‘the great resignation,’ and other factors, keeping infrastructure running and doing so efficiently and cost-effectively is now more paramount than ever,” said Dave Kahley, Senior Vice President, Customer Solutions, ServiceMax. “Spark 360 enables new clients to quickly implement our Asset 360 product and start seeing the benefits of their transformation right away.”

As 2021 draws to a close, ServiceMax’s Asset 360 continues to attract new customers, including Lowry Solutions who completed a significant new implementation in Q3. The company has also seen existing customers like Boston Scientific, Rite-Hite and Technogym expand the scope of their field service offerings, as well as customers like Smiths Detection complete successful multi-region and multi-functional rollouts. 

Looking forward, the addition of Spark 360 and its fixed scope furthers the company’s ability to help customers to go live faster with Asset 360. Spark 360’s exclusive business capabilities include:

• Asset Hierarchy Management (move, swap, clone, update)
• Location Management
• Asset Uptime & Downtime Capabilities & Reporting
• Automated Maintenance Work from Asset or Contract
• Work Order Assignment Management
  

Other capabilities of the package enable customers to:

• Manage, track, and enforce warranty and service contract entitlements against your installed base
• Effectively create and apply new maintenance plans and service contracts with a templatized approach
• Utilize end-to-end business process flows using Asset 360’s best-practice approach

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Further Reading:

• Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
• Read more about ServiceMax on Field Service News @ www.fieldservicenews.com/servicemax
• Find out more about ServiceMax @ www.servicemax.com
• Learn more about Spark 360 @ www.servicemax.com/spark360
• Connect with ServiceMax on LinkedIn @ www.linkedin.com/company/servicemax/
• Follow ServiceMax on Twitter @ twitter.com/ServiceMax

Despite lingering anxieties about the pandemic and a variety of economic and commercial issues, the majority of SMEs believe it is now imperative to begin building back from the crisis.

They are ready to step up their business investment, with ambitious plans for recruitment, renewal of equipment and machinery, and both domestic and international expansion. Fintech business lender MarketFinance asked 2,000 SME owners across the UK about their outlook for 2022 and beyond, gauging their short and long-term plans for business investment and growth. MarketFinance has today released a comprehensive research report of its findings, which are summarised here.

Confidence 

Analysis of the survey results has shown that business confidence amongst SMEs is improving, with many firms now focused on recovery and growth. With pandemic disruptions now largely settled, half of SMEs (48%) expect their turnover to stabilise or to increase over the next 12 months. Similarly, 50% of SMEs expect demand for their products or services to stabilise or to increase over the next six months. MarketFinance’s research has found that the majority of SMEs (63%) expect their business to grow over the next three years

Investment 

With survival mode no longer a necessity and cash flow pressures beginning to ease, the vast majority of SMEs (70%) now feel confident enough to increase business investment over the next 12 months. A quarter of SMEs plan to hire new staff, while 24% expect to purchase new equipment and machinery. When asked how they were factoring borrowing into their investment plans, 23% of SMEs said access to a broader range of borrowing options could enable them to increase investment even further.

Borrowing 

The research findings demonstrate that borrowing will play a key role in recovery and growth with 62% of SMEs saying that prudent borrowing could help them fund growth. However, three quarters (71%) of SMEs do not believe traditional banking products are the most obvious and convenient way to borrow for investment. Despite this lack of alignment between current finance needs and the options available through traditional routes, more than a third of SMEs (37%) are looking to take on new borrowing facilities.

Growth

With confidence high and a sense of having moved beyond recovery and into a new stage of growth, many businesses are looking forward to seizing a host of opportunities in 2022. Almost all SMEs surveyed (81%) plan to invest in sustainability, while 30% say they are considering merger and acquisition (M&A) activity in the year ahead  – more than twice as many as those primarily focusing on organic growth (14%). Over a third of businesses (34%) say they already sell overseas, or have plans to begin doing so. That figure is highest amongst the largest businesses surveyed (turnover between £5m and £6.5m) but even amongst smaller enterprises significant numbers are focused on export.

Anil Stocker, CEO at MarketFinance, commented: “It’s clear that the business environment has shifted and SMEs are looking ahead with a quietly confident and cautiously optimistic view. UK businesses intend to ramp up growth through domestic and international expansion, digital transformation and even M&A activity. But as they reset their post-pandemic goals for a post-pandemic, they’ll need to be confident of their funding base. 

Given that so many SMEs are looking outside of traditional routes in their search for finance, we’re particularly proud to have been accredited by the British Business Bank as one of the few alternative providers under The Recovery Loan Scheme. Schemes like the RLS are a golden opportunity for SMEs looking to gear up for growth, providing easily accessible funding at a lower cost across a wide range of products. We expect to see a large number of SMEs taking advantage of the scheme over the next 6 months as their growth and expansion efforts gain momentum and they invest in ambitious plans for 2022 and beyond.” 

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Further Reading:

• Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
• Read more about the impact of COVID-19 @ www.fieldservicenews.com/COVID-19
• Read more about Fintech on Field Service News @
• Learn more about Market Finance @ marketfinance.com
• Follow Market Finance on Twitter @ twitter.com/marketfinance

Webfleet Solutions has won the European Transport Award for Sustainability 2022.

The award, from German trade magazine Transport, recognises companies in the transport and commercial vehicle industry for their ongoing commitment to sustainability, with the winners chosen by an independent panel of experts. The leading provider of fleet management solutions received the accolade in the ‘Telematics’ category.

WEBFLEET SUPPORTS ITS CUSTOMERS TO IMPLEMENT MORE SUSTAINABLE FLEET OPERATIONS

Wolfgang Schmid, Sales Director D-A-CH at Webfleet Solutions, accepted the award together with Jeremy Gould, Vice President Sales at Webfleet Solutions.

“As part of Our Green Mission, we strive to build a more sustainable future for mobility by lowering our own carbon footprint and helping our customers reduce their carbon emissions,” said Schmid. “This award recognises our ambitions and achievements."

With its WEBFLEET software-as-a-service solution, Webfleet Solutions supports its customers to implement more sustainable fleet operations.

WEBFLEET allows fleet managers to improve fuel usage, for example, analyse driving behaviour to promote greener driving styles and ensure the most economical routes are being taken to reduce emissions. With its solution for electric vehicles, the telematics provider helps fleets maximise the value of their EVs and enables those that want to adopt electric models to do so effectively.

Webfleet Solutions also believes in sustainable operations and is actively reducing its own carbon footprint. The company recently launched an initiative to reduce the use of plastic in hardware packaging and has also partnered with global NGO Justdiggit to offset the carbon emissions from its supply chain and facilities by supporting replanting and reforestation projects in Africa.

Through Justdiggit, Webfleet Solutions has, to date, invested in regreening an area in Tanzania four times larger than the centre of Amsterdam, resulting in 51,800 tonnes of CO₂  being sequestrated through bringing back over 130,000 trees.

More information about the award can be found here: http://www.transportpreis.eu

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Further Reading:

• Read more about Service Innovation @ www.fieldservicenews.com/service-innovation-and-design 
• Read more about Fleet Technology @ www.fieldservicenews.com/fleet-technology
• Read more about Sustainability @ www.fieldservicenews.com/sustainability
• Learn more about Webfleet Solutions  @ www.webfleet.com
• Read more about Webfleet Solutions on FSN @ www.fieldservicenews.com/webfleet-solutions
• Follow WebFleet Solutions on Twitter @ twitter.com/Webfleetnews

UK small and medium sized food businesses are feeling the pressure for customer deliveries in the lead up to Christmas, according to new research released by Vimcar.Over half of those surveyed have experienced an increased demand for food deliveries in the lead up to Christmas compared with the last two years.

This pre-Christmas rush is putting clear pressure on deliveries and demand on fleets, with almost 90% of those surveyed offering a delivery service for their customers. A need which has been galvanised by a change in customers’ purchasing habits since the start of the pandemic, with many now expecting delivery options to be available as standard, rather than as an additional option.

OVER HALF OF FOOD DELIVERY BUSINESSES ARE EXPERIENCING A HIGHER DEMAND FOR DELIVERIES THIS CHRISTMAS, COMPARED TO THE LAST TWO YEARS

Undertaken by Vimcar, the fleet management software for SMEs, the survey comes at a time when food retailers are needing to increase their fleet size (93%) to keep up with demand, but are grappling with the impact of delivery driver shortages. Furthermore, almost all (96%) food businesses currently running fleets to fulfil delivery needs, expect their costs to increase between now and Christmas.

Despite the increased pressure and challenges facing SME food retailers, the majority of respondents (78%) are feeling optimistic about business performance for the Christmas period 2021, as a result of the increase in demand and the lifting of COVID restrictions in comparison to 2020.

Sami Eric, UK Country Manager at Vimcar said: “It is really uplifting to see that small and medium sized food retailers are thriving in the run up to Christmas, especially after a very challenging couple of years. With these higher demands comes higher expectations for businesses to meet. This research shows the challenges that the food industry is facing during the busiest time of the year, and the need for customers to be understanding of the changing landscape to which businesses are adapting to.”

Eric added: “As pressure mounts, efficient fleet management will be crucial in helping SMEs to offset rising fleet costs as well as maximise the investment they have made into new delivery services. Poorly managed fleets and drivers can quickly drain a business’ costs and resources, so implementing a fleet management tool is vital to simplify time spent on fleet admin and maintenance.”

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Further Reading:

• Read more about Managing the Mobile Workforce @ www.fieldservicenews.com/managing-the-mobile-workforce
• Read more about Fleet Management @ www.fieldservicenews.com/fleet-management
• Learn more about Vimcar @ vimcar.co.uk
• Find our more about Aircargo Transport @ www.aircargo-transport.eu
• Follow Vimcar on Twitter @ twitter.com/goVimcar

IFS, the global cloud enterprise software company, has announced the launch of  IFS assyst 11.4. This latest update is set to deliver the ability for companies to adopt and deploy workflow technology more broadly within their business. A single pricing model, as well as a simplified deployment model, will ensure business value is delivered within weeks of adoption. 

IFS assyst 11.4 will also deliver a considerable set of new capabilities to help organisations standardise, improve, and automate service management workflows simply and effectively. In this first release since IFS acquired Axios Systems in June 2021, the vendor marks a key milestone in its mission to deliver innovation and customer value to all its customers regardless of size.

With the new release IFS vows to simplify pricing, licensing, and deployment to keep to its promise to deliver value and great experience

As the digital imperative accelerates and becomes the backbone of business transformation, companies need to deliver rich customer and employee experiences. By extending the benefits of IT Service Management (ITSM) to the wider enterprise thus evolving into Enterprise Service Management, IFS assyst 11.4 focuses on secure and automated self-service, putting the employee experience at the heart of any digital transformation strategy from IT, HR, and finance, to facilities and beyond.  

“Digitising processes and building effectiveness through workflows is a fundamental pillar of any company’s  digital transformation journey. Achieving this across the entire enterprise has until now been complex and expensive, and therefore limited to the IT function,” said Martin Schirmer, President, IFS assyst. “With assyst 11.4, we have tackled some fundamental roadblocks from pricing, to contracting, and deployment - all of which will make it simpler and faster for an organisation to scale up in the roll out of the technology.”

With this release, assyst has extended the omnichannel experience, advancing its chatbot and providing a mobile app for self-service. This means that employees can get access to the help they need wherever they are working, allowing them to focus on more complex or pressing priorities.

Key capabilities of IFS assyst 11.4 include: 

• Over 100 predefined service workflows for improved time to value

• Low code approach to defining & maintaining service workflows

• A consumer-standard user-interface, intuitive, and easy to navigate 

• Simple cost-effective pricing for easy enterprise-wide deployment

• Integration with collaboration platforms like Microsoft Teams

“The release of IFS assyst 11.4 is the result of an incredible amount of hard work and investment from the IFS team over a short space of time,” continued Schirmer. “IFS is customer obsessed and with this release we are staying true to our north star, bringing enhanced service capabilities to companies anytime, anywhere.”

IFS assyst 11.4 is available immediately globally for customers to purchase. To learn more, please visit: https://info.axiossystems.com/assyst-11.4-broadcast 

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Further Reading:

• Find out more about IFS @ www.ifs.com/
• Read more about IFS on Field Service News @ https://www.fieldservicenews.com/ifs
• Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
• Learn more about  of IFS Assyst 11.4 @ info.axiossystems.com/assyst-11.4-broadcast  
• Follow IFS on Twitter @ https://twitter.com/ifs

Ericsson (NASDAQ: ERIC) has entered into an agreement to acquire Vonage Holdings Corp. (NASDAQ: VG) for USD 21 per share. This represents a total acquisition price of approximately USD 6.2 billion (Enterprise Value).

The merger agreement was approved unanimously by the Board of Vonage. The transaction builds upon Ericsson’s stated intent to expand globally in wireless enterprise, offering existing customers an increased share of a market valued at USD 700 billion by 2030.

THE ACQUISITION UNDERLINES ERICSSON STRATEGY TO EXPAND ITS PRESENCE IN WIRELESS ENTERPRISE AND BROADEN ITS GLOBAL OFFERINGS

Börje Ekholm, President and CEO of Ericsson, says: “The core of our strategy is to build leading mobile networks through technology leadership. This provides the foundation to build an enterprise business. The acquisition of Vonage is the next step in delivering on that strategic priority. Vonage gives us a platform to help our customers monetize the investments in the network, benefitting developers and businesses. Imagine putting the power and capabilities of 5G, the biggest global innovation platform, at the fingertips of developers. Then back it with Vonage’s advanced capabilities, in a world of 8 billion connected devices. Today we are making that possible.”

“Today Network APIs are an established market for messaging, voice and video, but with a significant potential to capitalise on new 4G and 5G capabilities. Vonage’s strong developer ecosystem will get access to 4G and 5G network APIs, exposed in a simple and globally unified way. This will allow them to develop new innovative global offerings. Communication Service Providers will be able to better monetize their investments in network infrastructure by creating new API driven revenues. Finally, businesses will benefit from the 5G performance, impacting operational performance, and share in new value coming from applications on top of the network.”

Rory Read, CEO of Vonage, says: “Ericsson and Vonage have a shared ambition to accelerate our long-term growth strategy. The convergence of the internet, mobility, the cloud and powerful 5G networks are forming the digital transformation and intelligent communications wave, which is driving a secular change in the way businesses operate. The combination of our two companies offers exciting opportunities for customers, partners, developers and team members to capture this next wave.”

“We believe joining Ericsson is in the best interests of our shareholders and is a testament to Vonage’s leadership position in business cloud communications, our innovative product portfolio, and outstanding team.”

For Ericsson, the acquisition builds on the success of the integration of Cradlepoint in September 2020. Cradlepoint has continued to develop strongly under Ericsson’s ownership.

Vonage and the Vonage Communications Platform (VCP)

Vonage, a global provider of cloud-based communications, has a strong track record of growth and margin evolution. Sales were USD 1.4 billion in the 12-month period to 30 September 2021, and over the same period, Vonage delivered an adjusted EBITDA margin of 14% and free cash flow of USD 109 million.

The cloud-based Vonage Communications Platform (VCP) serves over 120,000 customers and more than one million registered developers globally. The API (Application Programming Interface) platform within VCP allows developers to embed high quality communications - including messaging, voice and video - into applications and products, without back-end infrastructure or interfaces. Vonage also provides Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) solutions as part of the Vonage Communications Platform.

VCP accounts for approximately 80% of Vonage’s current revenues and delivered revenue growth in excess of 20% in the three-year period to 2020, with adjusted EBITDA margins moving from -19% in 2018 to break-even in the 12-month period to 30 September 2021. Vonage’s management team projects annual growth of over 20% for VCP in the coming years.

Ericsson and Vonage – creating a winning combination

Vonage’s presence in the Communication Platform as a Service (CPaaS) segment will provide Ericsson with an opportunity to access a complementary, substantial and high growth segment. With increasing investments in 4G and 5G - and a flourishing ecosystem of new applications and use cases leveraging the power of modern networks - demand from enterprises for programmable networks has been accelerating. CPaaS technologies democratize network access by offering API enabled communications services. The CPaaS market is expected to reach USD 22 billion by 2025, growing at 30% annually. In addition, Ericsson’s global leadership in 5G technology is expected to provide access to the developing space for open network APIs, which is expected to reach at least USD 8 billion by the end of the decade with a strong growth profile. CSP customers will also benefit from monetizing their network investments, optimizing the user experience and stimulating additional growth opportunities with new and advanced global network APIs and access to Vonage’s unified communications and contact center solutions.

The combination of Vonage’s customer base and developer community and Ericsson’s deep network expertise, 26,000 R&D specialists and global reach create opportunities to accelerate standalone strategies and innovation in the market. This includes accelerating enterprise digitalization and developing advanced APIs made possible by 5G; putting the power of the wireless network and communications at the finger-tips of the developer. Such APIs can be applied to help ensure the quality of critical services like telemedicine, immersive virtual education and autonomous vehicles as well as experiential performance benefits in gaming, augmented and extended reality, over wireless. 

In the longer term, Ericsson intends to offer value benefits to the full ecosystem – telecom operators, developers, and businesses – by creating a global platform for open network innovation, built on Ericsson and Vonage’s complementary solutions. 

Overview of the transaction

The acquisition will be conducted by means of a merger agreement through which Ericsson will acquire all of Vonage’s outstanding shares at an all-cash price of USD 21 per share. The merger consideration represents a premium of 28% to Vonage’s closing share price on 19 November 2021 of USD 16.37 per share, and a premium of 34% to the volume-weighted average share price over the 3 months to 19 November 2021 of USD 15.71 per share. 

The acquisition will be financed through Ericsson’s existing cash resources, which amounted to SEK 88 billion as of 30 September 2021 on a gross basis, and SEK 56 billion on a net basis as of the same date.

The transaction is expected to deliver near-term revenue synergy opportunities, including white-labelling and cross-selling of the combined product portfolio estimated to contribute USD 0.4 billion. by 2025. Ericsson also expects to achieve some cost efficiencies following completion of the transaction.

The transaction is expected to be accretive to EPS (excluding non-cash amortization impacts) and free cash flow before M&A from 2024 onwards.

On completion, Vonage will become a wholly owned subsidiary of Ericsson and will continue to operate under its existing name. It will be reported as a separate segment in Ericsson accounts. Vonage is headquartered in Holmdel, New Jersey in the United States with 2,200 employees throughout the United States, EMEA and APAC. Vonage’s employees will remain with the company and the Vonage CEO Rory Read will join the Executive Team of Ericsson, reporting to CEO, Börje Ekholm. Read joined Vonage as CEO in July 2020. With more than three decades’ global technology industry experience, Read was previously Chief Operating Executive for Dell Technologies and before that, CEO of Advanced Micro Devices (AMD). 

Ericsson remains fully committed to previously communicated financial targets, including long-term EBITA margins of 15-18%; long term FCF before M&A of 9-12% of sales; and a 2022 target EBIT margin of 12-14% for Ericsson Group excluding Vonage. 

Completion of the transaction is subject to Vonage shareholder approval, regulatory approvals and other customary conditions and is expected within the first half of 2022.

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Further Reading:

• Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
• Read more about Ericsson on Field Service News @ www.fieldservicenews.com/ericsson
• Read more about Telecommunications on FSN @ www.fieldservicenews.com/telecommunications
• Find out more about Ericsson @ www.ericsson.com
• Learn more about Vonage @ www.vonage.co.uk
• Follow Ericsson on Twitter @ twitter.com/Ericsson