Six Questions for Six Vendors

As the accompanying article describes, the PBX vendor you choose today is likely to be the one you stay with for many years. How should user organizations make the choice? Variations in IP-PBX product functionality and architecture are still substantial. But as the technology matures, these distinctions are diminishing. The focus shifts to differences in the nature of the supplier itself—all the more given probable future consolidation in this industry. Among the relevant questions: Is the vendor stable? Will it be acquired? Will it devote resources to the Canadian market? Will it offer effective customer support? Are its professional services of high quality? Will product development be continuing and effective? With these considerations in mind, I’d like to pose a question to each of Canada’s six most prominent PBX vendors. Nortel: Through several years of corporate turmoil, Nortel Networks has maintained the pace of product development and rounded out its IP-PBX portfolio in good style. But can Nortel succeed through technological excellence alone? Nortel urgently needs more effective front-office leadership and marketing, along with restored profitability. Without that, the company’s future stability may be in question. Cisco: Cisco Systems now vastly surpasses Canada’s other large PBX vendors in financial resources and profitability. But can Cisco keep focused on the development of voice/real-time technology? Despite its impressive gains in IP-PBX sales, Cisco has not established a clear lead in applications development, and in some areas (SIP technology, multimedia platforms) it has lagged. Data equipment remains Cisco’s main focus. Vendors whose excellence in voice products is a life-or-death issue may have an edge. Avaya: In recent years, Avaya has made gains in Canada, particularly in sales of very large PBXs, key systems, and contact centres. But can Avaya develop strength in the core of the market: IP-PBX sales to midsize organizations? Avaya Canada has acknowledged a persistent weakness in this area. Unless it makes progress here, support of its less-than-giant customers could suffer. Mitel: Mitel Networks, which won a large chunk of Canada’s PBX market primarily as a supplier of small systems, is trying to extend its sales upmarket. But can Mitel establish itself as a credible supplier to organizations with 500+ users? Progress in this area would provide welcome reassurance regarding the prospects of this vendor, which is by far the smallest of major PBX makers and is often mentioned as a possible target for acquisition. NEC: Japan-based NEC is a world technology giant known in the PBX arena for excellent technology and inferior marketing. It has now made good an initial lag in IP-PBX development. Strong on Canada’s West Coast, it is striving to win market share east of Alberta; its case studies speak of careful customization to meet special needs. But does the NEC team in Canada have the depth for effective customer support? Its work force of 50, focused mainly on sales, seems scanty. Siemens: A diversified industrial giant with great strength in telephony, Siemens seems to have everything—except a significant Canadian customer base. Siemens has tried to break into the Canadian PBX market in the past, only to let its efforts lapse. More recently, it has invested in a separate Canadian PBX division and stepped up marketing. But will Siemens stay the course? Its customers need confidence that the German powerhouse will not again retreat from Canada’s challenging market.

Six Questions for Six Vendors

News | 01/01/2006 5:00 am EST

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