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NEC is Exiting the Premises-Based UC Market

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NEC Signals Shift Towards UNIVERGE BLUE

Tech giant NEC is exiting the on-premise PBX business outside of Japan, a major shift for a former industry leader. This decision reflects the accelerating migration towards cloud-based Unified Communications as a Service (UCaaS).

NEC Emphasizes Cloud with UNIVERGE BLUE:

While not a direct UCaaS player itself, it established a strong partnership with Intermedia offering UNIVERGE BLUE. This solution combines native UCaaS and CCaaS, alongside a hybrid model integrating existing NEC PBX systems.

Challenges & Opportunities in the UCaaS Transition:

NEC’s move highlights the complexities faced by traditional PBX vendors in the cloud era. Many have struggled to adapt, with some relying on acquisitions (Cisco/BroadSoft) or partnerships (Avaya/Zoom). While on-premise systems remain in use, it’s decision underscores the growing dominance of UCaaS solutions.

Hospitals & Legacy Systems:

However, for some customers, voice remains the primary communication tool. In sectors like healthcare (an NEC stronghold), reliable on-premise PBXs with integrations for hospital systems are still valued.

The Future for Displaced NEC Customers:

NEC hasn’t provided a clear migration path for customers seeking to stay on-premise. Mitel, a global UC player with a history of acquisitions, could be a potential landing spot for these clients. Other options include Avaya (focusing on contact centers), Cisco (primarily cloud-driven), regional vendors like ALE or Huawei, or even open-source solutions.

A Changing Landscape:

NEC’s exit underscores the evolving communication landscape. While some customers migrate to UNIVERGE BLUE, others will explore various alternatives. NEC’s yet-to-be-defined path for on-premise customers adds uncertainty to the transition process.

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