--- title: "NEC to terminate on-premises UC-PBX services: Embracing the challenges of digital transformation｜EVOX" description: "As the business environment evolves rapidly and digital transformation continues to accelerate, cloud migration has become an inevitable trend. NEC’s announcement to discontinue its on-premise UC-PBX services marks a pivotal moment of transformation within the communications industry.\n\nHowever, for some enterprises, moving from on-premise PBX systems to cloud communication solutions can present challenges and difficulties. That’s why finding a smooth, well-supported path to cloud migration is critical.\n\nBusinesses should carefully consider their transformation strategies and look for a partner who can provide a seamless migration experience — offering comprehensive support and guidance to help you choose the right cloud communication solution and ensure a smooth transition to a new system, accelerating your transformation journey with greater speed and efficiency." image: https://blog.evoxglobal.com/hubfs/EVOXBlog/NEC%20to%20terminate%20on-premises%20UC-PBX%20services/240506_NEC-blog_cover.jpg --- [![EVOX Logo](https://blog.evoxglobal.com/hubfs/EVOXImages/Official_WEB/Header/251211_header-menu-17.webp)](https://www.evoxglobal.com/) Products ![](https://blog.evoxglobal.com/hubfs/EVOXImages/Official_WEB/EVOX%20AI/AI%20Summary/arrow-icon/down.png) EVOX AI AI-Powered Solutions [EVAA ( EVOX AI Agent 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LinkedIn](https://blog.evoxglobal.com/hs-fs/hubfs/EVOXBlog/layout_use/linkedin-social-icon-2.png?width=24&name=linkedin-social-icon-2.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.evoxglobal.com%2Fen%2Fnews-trends%2Fnec-exits-on-premise-uc-pbx%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://blog.evoxglobal.com/hs-fs/hubfs/EVOXBlog/layout_use/twitter-social-icon-2.png?width=24&name=twitter-social-icon-2.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.evoxglobal.com%2Fen%2Fnews-trends%2Fnec-exits-on-premise-uc-pbx%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.evoxglobal.com%2Fen%2Fnews-trends%2Fnec-exits-on-premise-uc-pbx%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=NEC%20to%20terminate%20on-premises%20UC-PBX%20services%3A%20Embracing%20the%20challenges%20of%20digital%20transformation%EF%BD%9CEVOX) When NEC announced its decision to exit the on-premises UC-PBX (Unified Communications - Private Branch Exchange) business outside of Japan in late April 2024, it marked a pivotal moment of transformation for the entire industry. This decision not only impacts NEC’s customers, but it has sparked extensive discussion. As on-premises PBX services gradually phase out, businesses are being compelled to re-evaluate their communication solutions and consider how to evolve with industry trends. When NEC announced its decision to exit the on-premises UC-PBX (Unified Communications - Private Branch Exchange) business outside of Japan in late April 2024, it marked a pivotal moment of transformation for the entire industry. This decision not only impacts NEC's customers, but it has sparked extensive discussion. As on-premises PBX services gradually phase out, businesses are being compelled to re-evaluate their communication solutions and consider how to evolve with industry trends. Return Menu ## What’s On-premises PBX ? An on-premises PBX is a private branch exchange system that is installed, operated and maintained within a company’s premises. In this setup, the server and communication infrastructure are managed internally by company staff, providing greater control and enhanced data privacy. This on-premises approach involves deploying the IT and communication infrastructure within the organization, rather than relying on cloud services. While this setup allows companies to retain full control over their communication systems, it also requires substantial resources for management and upkeep. On-premises PBX systems are often preferred by organizations that prioritize control, customization and privacy for their communications, even though the maintenance can be resource-intensive compared to cloud-based alternatives. More info： [Eight key differences between Cloud PBX and legacy hardware PBX](https://blog.evoxglobal.com/en/q-and-a/evox-vs-pbx) ## NEC discontinues on-premises PBX support ![NEC Exits the PBX](https://blog.evoxglobal.com/hs-fs/hubfs/NEC%20Blog/240506_blog-nec-img_01-1.jpg?width=763&height=429&name=240506_blog-nec-img_01-1.jpg) NEC’s decision to cease its on-premises PBX support was primarily driven by fundamental shifts in market demand. With the acceleration of digital transformation, more companies are seeking flexible and efficient communication solutions, with cloud services emerging as the main driver of this trend.   As digital transformation continues, cloud development is becoming the prevailing trend for the future. In 2020, NEC partnered with Intermedia to launch UNIVERGE BLUE, marking a significant milestone in NEC’s transformation into a cloud communication solution provider. Compared to traditional on-premises PBX systems, cloud solutions offer greater flexibility and scalability, enabling businesses to better respond to constantly changing markets and technologies.   For businesses, adopting cloud solutions can lead to cost savings, enhanced flexibility and increased efficiency. Cloud technology also provides higher security and reliability, helping organizations adapt to constantly changing environments.   Looking ahead, as the level of digitization rises, cloud technology will become even more widespread. From small and medium-sized businesses to large corporations, companies will turn to cloud solutions to improve operational efficiency and meet the challenges of market competition. Cloud technology is key for companies to maintain a competitive edge.   ## Navigating the transition to cloud communication solutions ![NEC Exits the PBX](https://blog.evoxglobal.com/hs-fs/hubfs/NEC%20Blog/240506_blog-nec-img_02.jpg?width=763&height=429&name=240506_blog-nec-img_02.jpg) NEC’s decision to discontinue its on-premises PBX services brings a series of challenges for businesses. Organizations still reliant on traditional PBX systems, or those unprepared for digital transformation, now face urgent pressure to find new communication solutions that ensure a smooth transition. Without a clear plan, businesses risk unnecessary operational disruptions, making a seamless transition to a new communication system a top priority.   Solution 1: Adopt cloud communication Businesses must be proactive in adopting cloud communication solutions. The introduction of a cloud-based PBX offers numerous advantages including reduced hardware costs, location flexibility, scalability for workforce changes, relief from maintenance issues and eco-friendly automatic updates. These benefits make cloud PBX an essential part of digital transformation, delivering more flexible and efficient communication solutions that strengthen a company's competitiveness and adaptability.   Solution 2: Seamlessly transition For companies hesitant to abandon costly legacy PBX systems, EVOX offers diverse [integration solutions](https://www.evoxglobal.com/en/solutions/pbx-integration). EVOX allows businesses to integrate existing PBX systems with cloud services, avoiding the need to replace existing equipment or invest heavily in new systems. This seamless integration preserves company phone numbers and hardware investments while providing the flexibility and convenience of cloud PBX, making it easy for businesses to effortlessly transition to a cloud-based communication system. More info： [Seamlessly upgrade from a traditional PBX to a cloud-based PBX.](https://www.evoxglobal.com/en/solutions/pbx-integration) ## Conclusion With rapid changes in the business environment and the ongoing push for digital transformation, cloud migration is inevitable. NEC’s decision to discontinue on-premises PBX support marks a pivotal moment in the communications industry. But, for some businesses the transition from on-premises systems to cloud communication presents challenges. For these businesses, finding a way to ensure a smooth transition is crucial. They must carefully evaluate their transition strategies and seek a partner capable of delivering a seamless migration experience with comprehensive support and guidance. This partnership will help businesses choose the right cloud communication solution and facilitate a smooth shift to the new system, enabling a faster and more effective transformation. References： - [NEC To Shutter On-Premises UC Operations Outside Japan](https://www.uctoday.com/unified-communications/nec-to-shutter-on-premises-uc-operations-outside-japan/) - [NEC Exits On-Premise UC Market](https://telecoms-channel.co.za/nec/nec-exits-on-premise-uc-market/) - [NEC Exits Premises-based UC](https://www.nojitter.com/unified-communications-collaboration/nec-exits-premises-based-uc) - [NEC Exits the PBX Business Phone System Industry](https://phonewire.com/blog/26444) **Want to learn more? Fill out the form, and our professional team will get in touch with you as soon as possible!** Stay up to date with modern communication, cloud, AI trends and the latest EVOX news. Most popular articles： - Key Considerations for Choosing a Customer Service System - What is LINE CRM? 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