Part of our RingCentral Buyer’s Guide.
Cloud-based communication services are quickly transforming the way that businesses connect both internally, and externally. The flexibility and versatility of the cloud unlocks new benefits and opportunities that organisations never had access to in the past, giving big and small companies the chance to grow at an accelerated rate.
As the Unified Communications as a Service market continues to grow at an accelerated rate, businesses are left wondering which vendor they should choose to help them get ahead of the competition. Two of the major UCaaS leaders today are Vonage, and RingCentral.
RingCentral is a publicly-traded provider of cloud-based solutions for communication and collaboration. Vonage is a publicly-held VoIP telephony company that provides companies and individuals alike with the communication strategies they need through stable internet connections. Let's take a look at both brands in closer detail.
Financials
Ever since RingCentral was launched in 1999, it’s seen incredible growth, delivering a range of new products and innovations to the market. In Q4 of the financial year for 2018, RingCentral published financial results like:
- Total revenue increased 34% year over year to $189 million
- Software subscriptions revenue increased 32% year over year to $172 million
- Annual Recurring Revenue (ARR) increased 33% year over year to $726 million
- RingCentral Office ARR increased 38% year over year to $644 million
- Mid-market and Enterprise ARR increased 73% year over year to $309 million
- Enterprise ARR increased 99% year over year to $171 million
Vonage began a little later than RingCentral, in 2001. Founded by Jeffrey A. Citron, and Jeff Pulver, the company has seen fantastic success over the years, and now has offices around the world. Vonage's 2018 full year and Q4 GAAP highlights were:
- 2018 Vonage Business Revenues of $608 Million, a 22% Increase Over 2017
- Fourth Quarter Vonage Business Revenues of $170 Million, a 27% Year-Over-Year Increase
- Fourth Quarter Vonage Business Service Revenues of $149 Million, a 32% Year-Over-Year Increase
- 2018 Consolidated Revenues of $1.05 Billion, a 5% Year-Over-Year Increase
- 2018 Income from Operations of $52 Million and Adjusted OIBDA of $178 Million
Gartner Says:
Every year, Gartner releases their Magic Quadrant listing the leaders, challengers, visionaries, and niche performers in the UCaaS industry. RingCentral has been named a UCaaS Leader by Gartner for multiple years in a row, including 2015, 2016, 2017, and 2018.
Unfortunately, Vonage is no longer a part of the Gartner Magic Quadrant for UCaaS, after dropping off the list back in 2016.
Glassdoor Says:
From an employment perspective, it seems that RingCentral and Vonage offer their employees a very different working experience. RingCentral currently has 2,500 employees, compared to Vonage's 1,400. Glassdoor users rate RingCentral at 4.5 out of 5, and Vonage at 2.8 out of 5 for employee satisfaction.
Portfolio Comparison:
Vonage and RingCentral both focus on the category of Unified Communication and Collaboration. The UC offering from Vonage and RingCentral's "Office" service share many common features, including:
- Call Forwarding
- Call Recording
- Call Reporting
- Call Flip, Pass, or Park
- Paging
- Hold Music
- Call Monitoring
However, RingCentral Office also features:
- Shared lines
- Message alerts
- Missed call notifications
- Visual voicemails
- Intelligent IVR
While Vonage Business Call Management offers:
- Call announcements
- Call queuing
- Caller ID
RingCentral Office also provides a stronger solution for collaboration than Vonage. Vonage uses Amazon Chime to deliver collaboration to customers, while RingCentral has their own collaboration and instant messaging service in the form of "Glip". RingCentral also has a unique video conferencing service called RingCentral Meetings.
Both RingCentral and Vonage also have an omni-channel contact centre service available over the cloud.
The Vonage Omnichannel contact centre for Vonage Enterprise includes:
- Quality of service management
- Real-time analytics and reporting
- APIs
- Remote support
- Unified workforce engagement interface
RingCentral Contact Centre offers include:
