On-premises PBX sales continue to decline – business moves to the cloud

The PBX is dying. Slowly, but surely, the traditional, on-premises PBX is disappearing. This means that more and more businesses will need to move their voice systems into the cloud. While some have done so, many, many more need to make the switch. MNOs and MVNOs need to help them do so and to provide enhanced propositions, based on mobility.

According to research company IHS Markit, sales of on-premises PBXs continue to decline. This is no surprise. The real surprise is that they still exist at all. After all, PBX solutions have been available from the cloud for some time and, with businesses eagerly embracing the cloud for their ICT services, there are few remaining reasons to buy a PBX for deployment on premise. Indeed, from whichever way you look at it, they look decidedly legacy.

The interesting thing is that, despite the success of many PBX cloud service providers, there remains a huge opportunity to offer such capabilities. After all, as the Cavell Group has made clear, adoption of hosted voice solutions may have reached a tipping point, but with more than 80% of the market yet to switch in many countries, the opportunity remains considerable. The fact is that classical PBXs may be doomed, but it will take a number of years for them to disappear completely.

This has not escaped the attention of a number of alternative service providers, eager to target business customers and to capitalise on PBX replacement plans. MNOs and MVNOs now need to think about how they can compete in this market. Two things are clear. One, the addressable market extends to the vast majority of business customers, so the potential is huge. Two, business users will increasingly seek solutions that are optimised for mobility.

As a result, MNOs and MVNOs should seize the opportunity to integrate hosted voice solutions into their cloud portfolio and to capitalise on their ability to enable true mobility. There are a number of ways in which they can do so. They can choose to target specific segments or verticals but what really matters is that they take action. If they do not, then they risk seeing the value of their service offer reduced merely to connectivity, across which other providers will deliver services.

The shift from on premises to cloud is well underway. It’s not reversible and the race is not over yet. There’s still time to target the PBX-replacement market as more and more businesses move to hosted models. Why not talk to Gintel to find out how?

MNOs, MVNOs, PBX solutions

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