TouchWave
TouchWave was a Palo Alto-based developer of IP-telephony network switches whose WebSwitch system targeted small and medium-sized businesses before Ericsson acquired the company in 1999.
Last updated August 31, 2026
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Overview
TouchWave, Inc. was a venture-backed communications technology company founded in Palo Alto, California, in 1997. The company developed WebSwitch, a web-managed telephone switching platform intended to replace conventional private branch exchange systems in small and medium-sized businesses and in branch networks operated by larger organizations. Its products reflected the early convergence of voice and data networking: instead of relying on a dedicated traditional telephone exchange, WebSwitch used an Internet Protocol-based platform to provide business telephony and related communications functions. The company was co-founded by Bo Larsson, Jeff Snider, David F. Wittenkamp, and Jesper Stroe. Oliver Muoto, who later became an entrepreneur, served as TouchWave's marketing director during its early period. TouchWave released the first WebSwitch product in 1997, at a time when IP telephony and softswitch technologies were beginning to challenge established circuit-switched telecommunications equipment. The product was designed to reduce communications costs, simplify administration, and consolidate voice services on a single IP-based network. TouchWave gained visibility quickly during 1998. WebSwitch received Best of Show recognition at both the Microsoft Network Telephony Forum and the Computer Telephony Expo in Los Angeles in March. The product was also highlighted by Communications Convergence magazine and received an Editor's Choice Award from Computer Telephony later that year. These recognitions helped position the company as an early contributor to the developing voice-over-IP market. The company pursued partnerships to improve the commercial and technical readiness of its platform. In July 1998, TouchWave entered a partnership with British Telecom, which provided technical recommendations and product feedback relevant to WebSwitch development. In October, TouchWave agreed to incorporate embedded communications software from Telogy Networks, with the objective of improving voice transmission quality. By the end of 1998, the company described its product line as capable of replacing conventional private telephone exchange systems for small and medium-sized businesses in multiple markets. In early 1999, TouchWave upgraded its WebSwitch 1608 local-area-network distributed phone system into the WebSwitch 2000. On April 13, 1999, Ericsson announced that it had acquired TouchWave for $46 million. The transaction gave Ericsson an IP-centric business communications product line and occurred during a period when large telecommunications companies were buying smaller networking and Internet communications companies. After the acquisition, TouchWave became an Ericsson subsidiary and was renamed WebCom. Ericsson continued developing the product family, including the WebSwitch 100 Phone Gateway and IP Extension Gateway introduced in 2000. The business was later regarded by industry commentary as having produced limited results for Ericsson. TouchWave therefore represents an early IP-telephony brand whose technology and market timing were notable, but whose independent identity ended shortly after its acquisition.
History
TouchWave emerged in 1997 in Palo Alto, California, as a venture-backed startup working on the early convergence of computer networking and business telephony. Its founders were Bo Larsson, Jeff Snider, David F. Wittenkamp, and Jesper Stroe. The company also employed Oliver Muoto as marketing director during its formative period. Its central product was WebSwitch, a web-based telephone switch intended to provide voice services through an Internet Protocol network rather than through a conventional private branch exchange. The product targeted small and medium-sized businesses, as well as branch networks belonging to larger organizations. TouchWave promoted an IP-based architecture as a way to lower communications costs, reduce the administrative burden of traditional telephone systems, and place voice and data services on a common network platform. The launch came during a period when the telecommunications industry was experimenting with softswitches and other mechanisms for routing calls without relying entirely on dedicated circuit-switched hardware. TouchWave's profile rose during 1998. In March, WebSwitch won Best of Show awards at the Microsoft Network Telephony Forum and the Computer Telephony Expo in Los Angeles. Communications Convergence magazine subsequently described the product as an indication of a future in which voice and data would share a network. In July, TouchWave entered a partnership with British Telecom. The relationship provided access to technical guidance and product feedback that could be applied to the continuing development of WebSwitch. In August, Computer Telephony named WebSwitch an Editor's Choice product, and in September the company introduced a new version of the system. Technical development continued through a relationship with Telogy Networks. Under an agreement announced in October 1998, TouchWave incorporated Telogy embedded communications software into WebSwitch to improve sound transmission. By the end of that year, TouchWave had advanced its product line sufficiently to position WebSwitch as a replacement for traditional private telephone exchange systems in small and medium-sized companies across multiple markets. In early April 1999, TouchWave upgraded the WebSwitch 1608 local-area-network distributed phone system to WebSwitch 2000. The company's independent period was short-lived. On April 13, 1999, Ericsson announced that it had acquired TouchWave for $46 million. The deal gave Ericsson IP-centric network products for business telephony and private business exchanges. It also reflected a broader telecommunications acquisition wave in which large companies purchased smaller firms working on Internet-connected communications technologies. After the transaction, TouchWave became part of Ericsson and was renamed WebCom. Ericsson continued the product line rather than immediately discontinuing it. In April 2000, Ericsson WebCom, then based in Menlo Park, California, expanded the family with the WebSwitch 100 Phone Gateway and IP Extension Gateway. These products extended the original concept from a distributed IP phone switch toward gateway and extension functions within business communications networks. The acquisition did not become a major success story for Ericsson. Business Communications Review commentary in 2003 described the transaction as having had little consequence and later stated that it had produced little fruit. The TouchWave identity consequently disappeared as an independent brand, while some former employees continued their careers elsewhere in telecommunications and communications software. Jeff Snider later became an Ericsson enterprise-sales executive and subsequently co-founded Adomo with Samir Lehaff, who had been associated with TouchWave leadership. TouchWave is therefore best understood as a short-lived early IP-telephony company whose WebSwitch technology anticipated later enterprise voice convergence, but whose standalone corporate history ended with Ericsson's 1999 acquisition.
- 2000
WebCom expands the product family
[1]Ericsson WebCom introduces the WebSwitch 100 Phone Gateway and IP Extension Gateway.
- 1999
WebSwitch 2000 introduced
[1]TouchWave upgrades the WebSwitch 1608 distributed phone system into WebSwitch 2000.
- 1999
Ericsson acquires TouchWave
[1]Ericsson purchases TouchWave for $46 million, ending the company's independent identity.
- 1998
WebSwitch gains industry recognition
[1]WebSwitch receives Best of Show awards at two telecommunications events and later earns an Editor's Choice award from Computer Telephony.
- 1998
British Telecom partnership begins
[1]TouchWave partners with British Telecom for technical recommendations and product feedback related to WebSwitch development.
- 1998
Telogy software is added to WebSwitch
[1]TouchWave agrees to incorporate Telogy Networks embedded communications software to improve voice quality.
- 1997
TouchWave is founded and launches WebSwitch
[1]TouchWave is established in Palo Alto and releases WebSwitch, an IP-based, web-managed telephone switching system for business customers.
Products and positioning
An early voice-over-IP business communications provider focused on replacing traditional private branch exchange systems with easier-to-manage, lower-cost IP-based telephony platforms for small and medium-sized companies and distributed enterprise branches.
IP-telephony network switch · 1997
WebSwitch
WebSwitch was TouchWave's core product family: a web-based telephone switching platform that used Internet Protocol networking to provide business voice communications. It was aimed at small and medium-sized companies and at branch networks of larger organizations. The system was positioned as a lower-cost, easier-to-administer alternative to conventional private branch exchange equipment and was designed to combine voice and data functions on one IP-based network.
Distributed IP phone system
WebSwitch 1608
WebSwitch 1608 was a local-area-network distributed phone system in the WebSwitch range. It represented TouchWave's effort to deliver business telephony through a distributed IP architecture rather than a conventional centralized private telephone exchange. In early 1999, TouchWave upgraded this platform into WebSwitch 2000.
IP business telephone system · 1999
WebSwitch 2000
WebSwitch 2000 was the successor to the WebSwitch 1608, introduced shortly before Ericsson acquired TouchWave. It continued the company's focus on IP-centric business telephony and private branch exchange replacement for small and medium-sized organizations and distributed enterprise sites.
IP telephony gateway · 2000
WebSwitch 100 Phone Gateway
The WebSwitch 100 Phone Gateway was introduced by Ericsson WebCom after the TouchWave acquisition. It extended the acquired WebSwitch concept into gateway equipment for connecting business telephone services within an IP-based communications environment.
IP telephony gateway · 2000
IP Extension Gateway
The IP Extension Gateway was part of Ericsson WebCom's post-acquisition expansion of the TouchWave product line. It was intended to support IP-based extensions within business communications networks, although detailed technical and commercial information is not established in the available reference material.
Brand decisions
2000
Expansion of the WebCom product lineProduct launchBackground
After acquiring TouchWave, Ericsson continued developing the business communications products under the WebCom identity.
Action taken
Ericsson WebCom introduced the WebSwitch 100 Phone Gateway and IP Extension Gateway.
Aftermath
The releases demonstrated continued product investment, although subsequent commentary questioned the overall commercial impact of the acquisition.
1999
Transition from WebSwitch 1608 to WebSwitch 2000Generation changeBackground
TouchWave was extending its distributed LAN telephony platform shortly before a change in ownership.
Action taken
The company upgraded WebSwitch 1608 to WebSwitch 2000.
Aftermath
WebSwitch 2000 became the latest independent TouchWave platform before the business was absorbed into Ericsson.
1999
Ericsson acquisition and rebranding as WebComM&ABackground
Large telecommunications companies were acquiring smaller firms with Internet-connected communications technologies, and Ericsson sought IP-centric business telephony capabilities.
Action taken
Ericsson acquired TouchWave for $46 million and converted it into an Ericsson subsidiary operating under the WebCom name.
Aftermath
TouchWave ceased operating as an independent brand. Ericsson continued the product family, but later industry commentary judged the acquisition to have generated limited results.
Acquisition price. $46 million (Announced April 13, 1999)
1998
Technical and channel partnerships for WebSwitchStrategyBackground
TouchWave needed carrier feedback and improved voice quality as it developed an early commercial IP-telephony system.
Action taken
The company partnered with British Telecom for technical recommendations and product feedback and agreed to integrate Telogy Networks embedded communications software.
Aftermath
The partnerships supported product refinement and helped TouchWave position WebSwitch as a practical replacement for traditional private telephone exchanges.
1997
Launch of WebSwitchProduct launchBackground
TouchWave entered the emerging IP-telephony market as businesses and telecommunications vendors explored replacing dedicated circuit-switched systems with software- and network-based platforms.
Action taken
The company released WebSwitch, a web-managed IP telephone switch designed for small and medium-sized businesses and larger organizations' branch networks.
Aftermath
The product quickly attracted industry attention and became the basis of TouchWave's commercial strategy.
Recent events
- 2003
Industry commentary questions the outcome of Ericsson's TouchWave acquisition[1]
Other
Business Communications Review characterized the acquisition as having had little consequence, and later commentary said it had produced limited results for Ericsson.
- 2000
Ericsson WebCom expands the WebSwitch line[1]
Product launch
Ericsson WebCom introduced the WebSwitch 100 Phone Gateway and IP Extension Gateway as additions to the acquired product family.
- 1999
Ericsson acquires TouchWave[1]
M&A
Ericsson announced the purchase of TouchWave for $46 million, acquiring its IP-focused business communications technology and WebSwitch product line.
- 1999
Ericsson continues TouchWave products under the WebCom name[1]
M&A · Leadership change
Following the acquisition, TouchWave became an Ericsson subsidiary and its business was renamed WebCom.
- 1998
TouchWave wins Best of Show awards for WebSwitch[1]
Other
WebSwitch received Best of Show recognition at the Microsoft Network Telephony Forum and the Computer Telephony Expo in Los Angeles.
- 1998
TouchWave partners with British Telecom[1]
Other
The partnership gave TouchWave access to technical recommendations and product feedback intended to support development of the WebSwitch platform.
- 1998
TouchWave integrates Telogy Networks software into WebSwitch[1]
Product generation
TouchWave agreed to use Telogy's embedded communications software to improve the quality of voice transmission in WebSwitch products.
Sources1 sources
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