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 adapt to evolving 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 adapt to evolving industry trends.
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.
NEC’s decision to cease its on-premises PBX services 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 one of the prevailing trends 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 market shifts and growing operational needs.
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. Mastering cloud technology will be key for companies to maintain a competitive edge.
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: Embrace change proactively
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: EVOX’s seamless transition solutions
For companies hesitant to abandon costly legacy PBX systems, EVOX offers diverse integration solutions. 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 while providing the flexibility and convenience of cloud PBX, making it easy for businesses to effortlessly transition to a cloud-based communication system.
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 services 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：
Want to learn more? Fill out the form, and our professional team will get in touch with you as soon as possible!