NEC Exits On-Premise UC Market

NEC is making a strategic shift to INIVERGE BLUE

Industry veteran NEC is making a strategic shift, exiting the on-premise PBX market outside of Japan. This move reflects the ever-growing dominance of cloud-based communication solutions.

Focus on UNIVERGE BLUE: A Cloud-Centric Future

While NEC wasn’t a direct player in UCaaS (Unified Communications as a Service), they established a strong partnership with Intermedia to offer UNIVERGE BLUE. This comprehensive solution combines native UCaaS and CCaaS (Contact Center as a Service) features with a hybrid model that integrates seamlessly with existing NEC PBX systems.

Shifting Tides: Challenges and Opportunities

The decision by NEC highlights the challenges faced by traditional PBX vendors as the industry migrates towards the cloud. Many have struggled to adapt, with some resorting to acquisitions (like Cisco buying BroadSoft) or strategic partnerships (like Avaya’s recent collaboration with Zoom). This shift, however, also presents opportunities. NEC’s focus on UNIVERGE BLUE positions them well to capitalize on the growing demand for cloud-based communication solutions.

Not All Voices Sing the Same Tune: Legacy Systems in Healthcare

For certain sectors, particularly healthcare, on-premise PBXs remain a crucial communication tool. Hospitals, a traditional stronghold for NEC, often prioritize reliable on-premise systems that integrate seamlessly with their existing infrastructure.

Uncertain Path for On-Premise Customers

NEC’s announcement leaves a question mark for customers who prefer on-premise solutions. They haven’t yet outlined a clear migration path for these users. Potential alternatives include:

  • Mitel: A global player with a history of acquiring PBX vendors (Aastra, ShoreTel, Toshiba, Unify) making them a possible landing spot for displaced NEC customers.
  • Avaya & Cisco: While Avaya focuses on contact center solutions and Cisco prioritizes cloud offerings, they may still be options for some customers.
  • Regional Players & Open-Source Solutions: Regional vendors like Alcatel-Lucent Enterprise or Huawei, and even open-source solutions like Asterisk, could also be considered.

The Future of Communication: A Changing Landscape

NEC’s exit from the on-premise PBX market globally (except Japan) is a significant indicator of the evolving communication landscape. While some customers will likely migrate to UNIVERGE BLUE, others will explore various alternatives. The path forward for those seeking to remain on-premise remains uncertain until NEC clarifies their migration strategy.

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