Ericsson ERIC recently announced that its wholly owned subsidiary, Vonage, has secured SOC 2 Type II compliance for its Network APIs (Application programming interfaces). Vonage Network APIs empower developers with access to advanced network capabilities, facilitating the creation of secure applications that enhance customer engagement.
Vonage’s Network APIs provide robust fraud prevention and security capabilities. It offers real-time threat detection and seamless user authentication, mitigating risk and enhancing the protection of confidential information. It allows businesses to automate critical processes across operations, lowering the likelihood of errors and improving systems’ responsiveness.
With Vonage Network APIs, developers can create innovative services to optimize communication channels, create personalized experiences and significantly improve interactions with customers. It brings comprehensive data monitoring capabilities that enable organizations to track performance metrics, network usage and customer behavior in real time. These insights significantly improve the decision-making process.
Significance of SOC Type II Compliance
American Institute of Certified Public Accountants (AICPA) has introduced SOC Type II compliance to evaluate an organization’s internal controls and systems to check its ability to protect data, processing integrity, privacy, confidentiality and availability. Issues like fraud, identity theft and breach of sensitive information can have far-fetched impacts on enterprises. Cybercriminals are increasingly using sophisticated methods to breach the cyber defense mechanism. An IBM report suggests the global average cost of a data breach has reached $4.88 million in 2024.
Amid this backdrop, AICPA’s SOC 2 Type II compliance has become a gold standard for cloud communication service providers. Vonage is one of the first network API providers to receive this certification. This indicates that Vonage has all the essential controls to safeguard against unauthorized data access. Its continuous monitoring swiftly detects anomalies in the system, and its rapid recovery feature quickly restores operations in case of any incident.
Will This Certification Boost ERIC’s Stock Price?
Organizations worldwide are witnessing heightened instances of fraudulent activities and payment fraud. Legacy authentication methods such as SMS two-factor authentication are susceptible to ever-evolving cyber threats. Enterprises, particularly in highly regulated industries such as banking and financial services, are increasingly looking for solutions that will ensure data security, operational transparency and customer trust. Vonage Network APIs backed by AICPA’s gold standard certification are well positioned to capitalize on this market trend. This will likely drive growth in Ericsson’s Enterprise portfolio.
ERIC Stock’s Price Movement
Shares of Ericsson have gained 49.4% over the past year compared with the industry’s 27.5% growth.
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ERIC’s Zacks Rank and Key Picks
Ericsson currently carries a Zacks Rank #3 (Hold).
Ubiquiti Inc. UI sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. UI’s excellent global business model, which is flexible and adaptable to evolving market changes, helps it overcome challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques.
InterDigital IDCC carries a Zacks Rank of 2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Zillow Group, Inc. ZG carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor.
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