Despite all the concerns - which are valid - Vonage has built a brand every bit as strong and pervasive as Skype. It's too early to tell if we're in a bubble economy again, where revenues and profits were afterthoughts, but a strong brand can go a long way. Investors looking for a pureplay in the VoIP gold rush may find the Vonage brand too alluring, and put money on a horse that isn't a thoroughbred, but might be some day.
With over a million people using Vonage, it's hard not think that many will buy simply to support the company that's delivering them a terrific phone service. And if mainstream investors are looking for a VoIP vehicle, what else will they recognize besides Vonage and Skype? A handful will look at 8x8 or Primus, but they lack Vonage's cachet. There are better public companies out there in terms of financial prospects, but most of these are infrastructure plays that won't be on the public's radar. So, you never know - the stock market marches to a different beat, and time will tell just how badly Main Street wants in on VoIP.
Business Week and ComputerWire ran good pieces on Vonage this morning, and both were nice enough to cite me.