Business networks and communications are already moving to wireless networks and the cloud, and this will only increase as new applications for businesses are built around the speed and capabilities of 5G.
Börje Ekholm, CEO of Ericsson, described these developments on Nov. 22 in a conference call following the announcement that the company has reached an agreement to acquire Vonage. The transaction is expected to close in the first half of 2022.
“5G is one of the greatest innovation platforms ever created,” Ekholm said on the conference call. “We expect that almost all interactions, like calling a cab or getting a bank security number, will require integrated communication. 5G takes this to a whole new level. Almost all workflows and processes will use some sort of communication and network API.
5G takes it to a whole new level
He explained that by bringing together Ericsson’s wireless technology that underpins 5G networks with Vonage’s cloud-based communications, the acquisition will make it easier for developers to build applications for businesses using 5G. This will be facilitated by the fact that the existing Vonage Communications Platform (VCP) serves over a million developers worldwide.
These developers will have access to a common global platform that will allow them to more easily access the capabilities of 5G networks and integrate them into their business applications.
“We see this as a fundamental path to digitized businesses,” said Ekholm. “It’s about helping developers here create new premium user experiences using advanced 5G APIs. So in addition to mainstream use cases, 5G was designed and built for business. We see that 5G can make wireless the main access technology for businesses. “
The VCP includes application programming interfaces (APIs) that allow developers to integrate messaging, voice and video into applications and products, and the addition of access to the power of 5G networks will enable new applications and use cases.
Ensure quality in future use cases
Looking to the future, Ekholm and CEO of Vonage Rory Read said they expect these APIs combined with 5G to help ensure speed, reliability and quality in use cases such as business communication and productivity, remote health, immersive virtual education, autonomous vehicles, real-time games and augmented and extended reality – everywhere wireless networks.
As more businesses turn to wireless networking, traffic will increase and the total addressable market for Ericsson’s 5G technology will increase. Ericsson has already tackled another segment of the business by expanding its presence in wireless edge solutions, dedicated networks, cellular IoT and mission-critical networks. Here, Ericsson expects growth of 20-30% per year.
“Vonage, as a leader in the field of business communication platforms, gives us the opportunity to approach the enterprise market and create scale in terms of customers and access to the developer market.” , Ekholm said. “We intend to invest to accelerate Vonage’s current operations and generate synergies in support of the current business plan. Then, together, we will elevate the 5G ecosystem by developing the global network platform for the full benefit of [communication service providers], developers and companies.