Making Technology Simple

A Major Shift in the Telecom Industry

Written by Chris Carrero | Aug 27, 2024 3:13:33 AM

NEC, a major player in the telecom industry, recently announced that it will begin phasing out its on-premises business phone systems, marking a significant exit from the on-premises market. With around 16% of the market share, this move is expected to impact many businesses, particularly in Pennsylvania.

With NEC's decision to phase out its on-premises business phone systems, businesses are reacting to this major shift in the Unified Communications (UC) market. As a key player with a substantial market share, NEC's exit from this sector could financially disrupt the technolgy industry, prompting many businesses to reevaluate their communication strategies.

The announcement from NEC has caught many business leaders off guard, forcing them to consider alternative options in the rapidly evolving telecom landscape. While the transition away from traditional on-premises systems may seem daunting, it presents a valuable opportunity for businesses to embrace the benefits of VoIP and cloud-based technologies. These modern solutions offer enhanced features, flexibility, and cost savings, making them an attractive choice for businesses looking to future-proof their communication infrastructure.

As NEC sets key dates for the phase-out process, including the end of new deliveries, shipments, technical support, and software assurance, businesses must act swiftly to explore their options and make a smooth transition to more advanced systems.

If your business uses any of these systems, it’s crucial to start exploring future options, such as VoIP and cloud-based systems.

Key Dates to Remember:

12/31/24 - End of New Deliveries: The last date for ordering new products.

3/31/25 - End of Shipment: The final date for shipping hardware products ordered before the end of 2024.

3/31/26 - End of Service: NEC will end technical support for these systems.

3/31/26 - End of Software Assurance Support: NEC will also stop software support for the affected systems.

 

What Does This Mean for Your Business?

NEC’s announcement might be surprising for many business leaders currently using these soon-to-be-outdated phone systems. However, this shift has been anticipated as the telecom industry increasingly moves toward VoIP and cloud-based technologies, especially with the rise of remote work.

These businesses should view this as an opportunity to upgrade to modern VoIP alternatives, which offer numerous features and cost savings. Transitioning from legacy systems to the cloud may seem daunting, but Convergent is here to help.

 

Reach Out to Convergent for Expert Guidance

Convergent, a leading telecom provider for almost 50 years, is ready to assist businesses transitioning from NEC’s on-site phone systems to more advanced cloud-based options. If you’re concerned about NEC’s recent announcement let’s discuss the best options for your business moving forward.