European cloud communications provider NFON is making a big AI services play among its 3,000 partners, as it makes sure it doesn’t miss the boat this time when it comes to a new channel business opportunity.
At a press event at its Munich, Germany headquarters this week, NFON CEO Patrik Heider (pictured) admitted the firm had previously been slow to move in offering emerging video and chat services to its partners, but said the firm was now determined to be a fast mover when it came to new services built around AI.
“Over the last 12 months, many service providers have seen unified communications services commoditised, with a 44% decline in average revenue per user (ARPU),” said Heider. “AI is offering opportunities to change this, as over the next five years in Germany, for instance, end customers plan to achieve 20% growth through AI.”
Heider added: “With the help of AI, we plan to scale up to 1m seats supported.” NFON currently supports 55,000 customer accounts across Europe, with 660,000 subscribers/users across those accounts. Heider didn’t state when the 1m target would be reached, but the fact the Munich press event sought to promote the company’s Next 2027 corporate strategy, might give you a clue.
The company’s intentions around AI development were perhaps demonstrated when it acquired Bremen, Germany startup botario last August. At the event, it was confirmed that the new AI services being developed and launched came from technology developed by botario, and not through third party generative AI platforms and large language models (LLMs).
Channel-only NFON certainly isn’t intending to leave any partner or customer behind when it comes to AI either. Heider explained the strategy was to eventually marry together the company’s core sales around IP PBXs and contact centre services with emerging AI sales, while achieving “sustainable growth” with customer and partner “centricity”.
NFON currently focuses on providing services to the small- to mid-sized market, with customers running under 20 seats on average. Heider said the firm saw its sales make up eventually changing through AI though, with more enterprises and the public sector coming on board.
At the moment, around 80% of NFON sales are generated in Germany, around 10% come through the UK, with about 10% also through Austria. Much smaller, but rising levels of sales, are also coming through the Italy, Poland and Iberia markets, for instance.
More from NFON’s Munich event, including details of new AI services, to follow...
