The factors that will sustain NFON's impressive growth are
international expansion and platform scalability
LONDON, May 24, 2017 /PRNewswire/ -- Based on its
recent analysis of the hosted Internet protocol (IP) telephony and
Unified Communications as a Service (UCaaS) industry, Frost &
Sullivan recognises NFON with the 2017 European Frost &
Sullivan Award for Growth Excellence Leadership. NFON has
entrenched itself in the European hosted IP telephony and UCaaS
market, growing at above-market average growth rates by
implementing a combination of growth diversification, high
price/performance value, and compelling customer purchase and
ownership experiences. Having captured a prominent position in
Germany with a strong feature set
and affordable pricing, it is striving to replicate this success
across Europe.
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The launch of NFON's Cloud Telephone System service in 2007
enabled the company to quickly scale the leader board in its native
Germany. The proprietary platform
helps the provider better control costs and offer affordable
communications solutions to businesses. Platform ownership further
empowers the provider to innovate more rapidly and respond to
changing customer requirements. Through higher margins, it allows
NFON to leverage partners for broader geographic reach and greater
customer support.
"NFON's initial focus on small- and medium-size businesses
(SMBs) helped it capture the latent market demand for feature-rich,
yet cost-effective communications solutions. Demand among SMBs
remains strong throughout Europe,
which creates significant opportunities for the innovative
provider," said Frost & Sullivan
Vice President Elka Popova. "NFON is
also striving to harness increasing demand for cloud communications
solutions among larger organizations and is experiencing
accelerated growth through greater average deployment size."
"We feel truly honoured to be named Growth Excellence Leader.
This shows that our expansion strategy is fully paying off. It also
encourages us to pursue this strategy across Europe," Hans
Szymanski, CEO of NFON AG, explains. "This year we will open
new branches in both Portugal and
Italy."
One of the core elements of NFON's growth strategy is global
expansion to ensure scalability. In addition to the German market,
it has successfully launched operations in Austria, Croatia, Hungary, the
Netherlands, Poland,
Romania, Slovakia, Slovenia, Spain, Switzerland, and the UK. It will be launching
services in the Portuguese market in the second quarter of 2017 and
has plans to make services available in Italy. It employs a direct approach in
countries such as Austria,
Spain, and the UK, but has also
demonstrated willingness to partner with providers such as Sunrise
in Switzerland (white-label
services) and Zetacom (exclusive partner) in the Netherlands.
With a roster of more than 15,000 business customers in 2016,
NFON was one of the top-16 hosted IP telephony providers in the
highly challenging European market. It reported a 44% growth rate
in installed users, surpassing the industry rate of 25%. Its
remarkable growth underlines its agility, strategy effectiveness,
and ability to adapt and execute.
NFON's growth is also the result of its excellent scalability,
as its platform can serve as few as two employees to as many as
249,000. Its focus on functionality rather than account size across
multiple customer segments allows it to target a larger number of
businesses and customer bases. Diversifying its revenue streams and
risks, it can balance shorter sales and implementation cycles in
the SMB segment, with lower churn rates and greater return on sales
costs in larger deployments.
"NFON's extensive feature set, along with the flexibility of the
cloud model, make NFON Cloud Telephone System a viable alternative
to complex, expensive, premise-based solutions, as well as
lower-end consumer voice over IP services," noted Popova.
"Web-based portal and control functions provide users and IT
administrators much greater control over their communications
solutions than legacy time division multiplexing-based
services."
Meanwhile, NFON has shown exemplary commitment to its partner
channels by empowering them to serve customers in their respective
regions and add products and services for greater customer value.
Its fully redundant data centre infrastructure ensures higher
service availability and is a critical factor for customer
retention and service scalability.
Overall, Frost & Sullivan is pleased to acknowledge NFON's
success born of its ability to accommodate customers' changing
requirements and ensure a positive experience throughout the
lifecycle of its service.
Each year, Frost & Sullivan bestows this award upon the
company that demonstrates excellence in growth and customer value.
It recognises the superiority of the product/service, as well as
the overall customer, purchase, ownership, and service experience
offered, which has resulted in the recipient company seeing
above-market growth and greater share of wallet. The award lauds
the growth, diversification, and sustainability strategies of the
company.
Frost & Sullivan Best Practices awards recognise companies
in a variety of regional and global markets for demonstrating
outstanding achievement and superior performance in areas such as
leadership, technological innovation, customer service, and
strategic product development. Industry analysts compare market
participants and measure performance through in-depth interviews,
analysis, and extensive secondary research to identify best
practices in the industry.
About NFON
Business communication around the world is undergoing the
greatest change in its history. A modern business phone system in
the cloud is an investment in the future viability for businesses
of any size or industry. NFON offers unlimited capacities for the
challenges faced by companies with 2 to 249,000 employees. NFON is
a cloud solution "Made in Germany"
and stands for data protection, reliability, and TÜV-certified
voice quality. These facts together with the more than 150
intelligent features, simplicity of operation, cost effectiveness
and essential security features all contribute to NFON being one of
the leading provider worldwide. Operating in 12 European countries,
NFON AG has its headquarters in Munich. http://www.nfon.com/
About Frost & Sullivan
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addresses the global challenges and related growth opportunities
that will make or break today's market participants. For more than
50 years, we have been developing growth strategies for the global
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Contact:
Chiara Carella
P: +44 (0) 207.343.8314
F: 210.348.1003
E: chiara.carella@frost.com