Is Microsoft a Threat to SMB Phone System Vendors?

Source: blog.voipsupply.com

Microsoft’s Response Point Platform Has Many Shaking In Their Boots…But Should They Be?

Iotum CEO and blogger Alec Saunders has an excellent post about the impact that Microsoft will have on smaller players in the small medium business phone system marketplace with their release of their Office Communications Server, Office Communicator, and the Embedded Microsoft Response Point PBX. Alec makes some solid points in regards to Microsoft’s moves into this space and why small medium phone system vendors should be worried. The two most important points to consider?

Voice as just another application, and Microsoft is the KING of software.

I could not agree more with Alec’s points, but if I was a small business phone system provider, I would not as worried about Microsoft, as would with hosted service providers. Think about this for a second. If voice is just another application, and the current trend with applications is to have them hosted in “the cloud”, it makes sense that eventually there will be no need for a premise based phone system. Furthermore, as unified communications transitions to become unified business, the hosted service providers become hosted solution providers, delivering every business application; voice, erp, crm, etc. over an IP pipe. That is true unification within your business.

With the aggressive decline in the cost of bandwith, and the aggressive increase in bandwith pipe size, the reality of this scenario is very real, and is very scary for premise based phone system providers.

Why is the Hosted Model So Scary?

Because business and the way we work, is changing. The idea of a nine to five day is no longer. We work when we can. We need to utilize the “working moments” wherever they may be (home, hotel, car, plane, etc.) and premise based equipment DOES NOT allow you enough flexibility to truly leverage these moments. However, when your business tools are all hosted in the cloud, your office, your desk, becomes wherever it is that you happen to be. The hosted model is one that better suits our emerging work culture. In many respects the premise based is already dead - I use Skype more than my desk phone.

So yes, Microsoft is a threat to phone system vendors, but the even bigger threat to phone system vendors is our emerging work culture, which revolves around working moments, that are only truly leveraged with flexible, accessible, on-demand, solutions which are only truly usable when hosted in the cloud. If I was a phone system vendor, my strategy would be to fight bought Microsoft, and hosted solutions, by offering hosted-hybrid solutions that leverage both the benefits of a premise base solution and that of a hosted solution.

Published on April 6th, 2007 under


Last 20 posts tagged "VoIP Commentary"

Where’s VoIP Going? A Look At VoIP Industry Trends

Source: blog.voipsupply.com

Where is the VoIP industry going?
Of late, it is the question I field most often.
I am not sure if it is because as the market mature, seeing what’s next is increasingly important, or if it…

Published on April 13th, 2008 under

I Saw A Lot, But I Missed A Lot at VON

Source: smithonvoip.com

I’m now back in the saddle (so to speak) after a less than pleasant red-eye home from the VON show and I realized that I didn’t get the chance to meet with any of the folks that I actually…

Published on March 20th, 2008 under

VoIP Keeps On Getting Easier

Source: smithonvoip.com

After walking the floor at VON I am left with one thought:
VoIP keeps getting easier and easier for the end user.
phone systems, network management software, bandwidth, business voice lines…a…

Published on March 18th, 2008 under

What Good Are Subscribers If You Have No Revenues

Source: smithonvoip.com

For those of you who are regular followers, you might have noticed that I have not been posting much of late and that when I do it is usually thoughts about events that happened days or weeks…

Published on March 4th, 2008 under

PCI Card Vendors Put Down Their Guns…

Source: smithonvoip.com

Even though they always seem to be nipping at one another’s heels, at a recent FreePBX.org open source telephony training session, representatives from Digium, Sangoma and Rhino Equipment put…

Published on March 4th, 2008 under

VoIP Phone System Sales Are Booming!

Source: smithonvoip.com

What a difference a year makes.
Last year at this time of the year, I was lucky to see one or two 200+ seat phone system deals a month come across my desk. Now they are flowing in once or twic…

Published on February 14th, 2008 under

Ribbit VS Lypp Comparison - Is It Fair?

Source: smithonvoip.com

There is quite the discussion arising over Andy Abramson’s comments on a Ribbit Vs Lypp API comparison post that was authored by Erik Lagerway, Lypp’s CEO and Founder.
Let me preface my thoughts…

Published on January 29th, 2008 under

No One Wants SIP Trunking

Source: smithonvoip.com

Why do service providers and the industry at large insist on calling a phone line delivered over an IP network a “SIP Trunk”?
Customers do not want SIP trunks, they want business phone lines…

Published on January 23rd, 2008 under

iPod Vending Machines

Source: smithonvoip.com

I know that Buffalo is not exactly the epic center for technology, but while walking through the Atlanta airport yesterday, I saw something that I had never seen before: an iPod vending machin…

Published on January 23rd, 2008 under

Why Vonage Stopped Selling WiFi Phones

Source: smithonvoip.com

Russell Shaw asked, in a post tonight, why has Vonage stopped selling WiFi Phones.
Russell, I have the answer:
They suck.
It is not really the WiFi phone, or the manufacturers behind them, it…

Published on January 21st, 2008 under

The Phone Call is Dead

Source: smithonvoip.com

Well, maybe it is not completely dead, but it is dying.
For decades, the phone call has been the ideal way to keep in touch with family, friends and business associates. It was ideal becaus…

Published on January 20th, 2008 under

One More Reason Pure VoIP is Not The Way to Go

Source: smithonvoip.com

I do not really get a lot of sleep.
Most nights, I am lucky if I get six hours. So, imagine the cob webs I have this morning after being awoken this morning at about 4:30am (two hours after I…

Published on January 9th, 2008 under

Asterisk As Plumbing

Source: smithonvoip.com

One of the interesting thoughts that pal Ken Camp came up with last year was that of VoIP as plumbing. That is VoIP is merely a delivery system for applications (albeit an important piece of…

Published on January 8th, 2008 under

Why Don’t Web-Browsers Come Standard With VoIP?

Source: smithonvoip.com

I should probably be ashamed to admit this, but for the longest time I thought of and wanted VoIP to merely be a low cost replacement to traditional VoIP.
As sales professional I found that when…

Published on January 7th, 2008 under

Thoughts and Opinions concerning Microsoft OCS 2007

Source: blog.voipsupply.com

I recently posed a question to a wide range of colleagues, most of whom work work within the telephony industry. I asked…”What are your thoughts regarding the industry impact of Microsoft…

Published on October 26th, 2007 under

Maybe I Spoke Too Soon About Vonage

Source: smithonvoip.com

Does Vonage Really Love You, The Customer?
A few weeks ago I wrote about a post entitled, “We All Owe Vonage a Thanks“. In it I praised the batter pure-play for all that they hav…

Published on October 24th, 2007 under

Is Paetec’s Purchase of Allworx A Positive Sign or a Negative One?

Source: smithonvoip.com

IP Phone System Consolidation Continues
Right down the road from VoIP Supply, news broke last week that CLEC Paetec has purchased IP PBX provider Allworx. According to the release, Paetec picked…

Published on October 16th, 2007 under

We All Owe Vonage A Thanks

Source: smithonvoip.com

I have been thinking a lot lately about the torch that Vonage carried for the VoIP industry and how much of what they did that has landed them in so much financial trouble (marketing and advertising)…

Published on October 10th, 2007 under

At Least Vonage’s Commercials Were Funny

Source: smithonvoip.com

Ooma Won’t Win Many Over With Commercials Like This
Ooma, the sort-of-VoIP start-up that allows users to make FREE phone calls has released what I consider to be one of the worse representations…

Published on September 20th, 2007 under

More VoIP Providers Will Die In The Next Year

Source: smithonvoip.com

Packet 8 CEO Alluded’s To More Industry Doom and Gloom
With VoIP subscriber growth set to slow over the next four years and the recent exposure of the weakness of the pure-play business mod…

Published on September 14th, 2007 under
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