Is Your Business at Risk Running an Outdated Communications System?

(Editor’s Note: This is an update to an article originally posted June 2, 2014.)

You know your communications system is way past its prime, and economic pressures have led you to delay its upgrade or replacement.

But there comes a point in time when it no longer makes sense to put off replacing your communications assets—from both a financial perspective and a business/productivity perspective. Retaining outdated equipment can essentially increase your IT costs and prevent your users from utilizing communications tools that help your business processes.

Plus, keep in mind; the greatest risk to your business if your communications go down is your business shuts down. This can lead to huge losses for your business, including customer dissatisfaction, customer loss, damaged reputation and costs related to regaining your reputation. These all can greatly affect your business and result in huge losses.

Phone systems are one of the assets that many companies take for granted as long as they have dial-tone. They don’t think much about it and will definitely spend their budget elsewhere if they can. As a result, many of these organizations are sitting on archaic (or end-of-life) equipment that is no longer efficiently supporting their business while possibly putting it a risk.

Yet for some, the prevailing practice is to continue operating the existing system well past its useful life and beyond the end-of-support – not realizing the potential costs and the risk they are putting their business in.

We often hear the following reasons to avoid upgrading:

  • We don’t have the budget, or there is a higher priority budgetary request.
  • The lifespan on the last communications system was too short.
  • We’re afraid that if we upgrade tomorrow, something better will come out next week (a.k.a. the cycle of obsolescence).
  • We’re unclear on our unified communications plans and how our phone system should fit in with UC.
  • Newer phone systems are becoming too complex to use.
  • The buying cycle is too long, and we will have to get too many people involved who will all have different opinions.
  • We don’t know which approach to take—i.e. premises, hybrid, or cloud-based.

There’s a chance that the phones you think are supporting your business aren’t. While the value of your older technology may not have appeared to change—for example, the phones still work, and you can still make calls—the outdated system may be hurting your business.

Free White Paper:  Time to Replace that Old PBX

We know the decision to move to a new telephony system is sometimes a difficult one to make. That’s why we’ve created the following list of 3 of the benefits of a modern unified communications system over an outdated phone system.

1. System Stabilization

If you are a business owner or decision maker, you have probably thought, “We save money keeping the old system. What’s the worst that can happen?”

Every day your business uses an analog, TDM, or older VoIP phone system that has reached end-of-life, you run the risk of having your phone system fail without access to support. If that happens, revenue will likely be lost as a result. How much? Well, you could lose what equates to hours, days, or even weeks of revenue—depending on the amount of time it takes to quickly repair or worst case find and install a new system. Not to mention what was previously stated about customer dissatisfaction and loss.

And hurrying to find a new system isn’t ideal. If your system fails, it could mean you are forced to make a quick replacement decision. Companies that don’t have the time or don’t take the time to research properly before purchase usually discover they’ve spent too much money or are unhappy with their purchase after it is too late to change it. Taking the time to find the right IP Telephony solution or Unified Communications solution will improve your business processes and efficiencies without over-extending your budget.

2. Improved Operational Costs

Maintaining separate systems like directories, conferencing software, voicemail, and telephony is expensive and time consuming for IT departments to sustain. In fact, it can be so time-consuming that the IT department spends the majority of their day keeping these systems functional—time that can be better spent on more strategic IT projects.

The older the system, the higher the operational cost is when you don’t upgrade. Some of the costs businesses accrue using older systems include:

  • Proprietary hardware at each location (equipment, phones, PBX)
  • Installation
  • Licensing
  • Maintenance, repairs and upgrades
  • Additional services
    • Fax
    • Business SMS
    • HD video meetings
    • Audio conferencing

When you factor the lost IT time spent maintaining each separate communications system with the opportunity cost of not having the advanced applications and features that modern unified communications provides, you end up with a total cost that is just too high for most businesses to ignore.

3. Competitive Advantage

Have you stopped to think about whether your competitors are taking advantage of modern communications software? If they are and you’re not, then chances are they are able to work smarter, faster, and more efficiently. Working smarter gives them an edge by increasing their productivity and creating a competitive advantage.

Your competitors that are working with updated communications systems, most likely have these advanced features at their disposal:

  • Audio/video/web collaboration, white boarding and document sharing
  • Support for the mobile workforce with a consistent user experience across smartphones and tablets
  • UC clients that provide status, presence, call history, call control plus more
  • Integrated vertical applications through standard and open services

While the cost of upgrading may seem high, the advanced applications and features associated with modern communications systems will help re-gain lost competitive edge and offer companies an opportunity to better serve their customers.

Unified communications can help businesses re-gain competitive advantage in two ways:

First, a new system can help you increase your revenue by providing your business with the communications applications needed to be more productive and efficient. You could gain better advantages and increased competitive edge by choosing a modern solution with a lower total cost of ownership and features that enable collaboration across your business, improving the speed of your communications.

Secondly, UC provides communications software that makes enterprise-level communications applications available on an ad-hoc basis. This either gives you access to applications that you might not have previously been able to budget for, or, saves your organization money as you no longer have to pay the fees required to utilize multiple services. Replacing hosted web, audio or video conferencing services is a perfect example. The accrued savings can boost the return on your unified communications investment, and expand your competitive edge through re-investment into other IT projects that help your business grow.

Increased Productivity

If you fear that your new technology will become obsolescent and use that as an excuse to avoid upgrading, you shouldn’t. Look for vendors that offer software assurances and extended warranties for hardware that will provide your business with more security and less risk in the long run.

With a modern communications solution, you ensure that your system has the flexibility to handle rapid growth, giving you the ability to provide support to your increasingly mobile and distributed workforce. Your IT team will re-gain some of their time, allowing them to focus on other strategic IT initiatives. And, your employees will re-coup benefits that improve the speed of communication from access to applications that positively impact your daily business—whether it’s through more efficient collaboration with colleagues, or improving customer response times.

Options Available to Your Business

Ultimately there is a high cost, in terms of inefficiencies and operational cost, when you continue to operate an outdated or end-of-life phone system.

Some organizations struggle with selecting the best model (premises, hybrid, or cloud-based) to meet long-term communication needs. Ultimately you’ll look for the platform and vendor that has the flexibility to customize the right solution to meet your specific needs.

Smart Enterprise

Free White Paper
Time to Replace that Old PBX

To learn more about the risks associated with running an outdated communications system and the steps you should take in purchasing a new system, fill out the form to download the white paper written by Dave Michels, principal analyst at TalkPointz.

 
 
 
 
 



In times of financial uncertainty, NEC’s stability is part of the solution

Last week, we learned that Avaya has filed in federal court for Chapter 11 bankruptcy protection due in large part to a significant debt burden carried over a nearly 10-year period. Only time will tell whether the debt restructuring process under bankruptcy will be kind to Avaya. Regardless, I’m sure our industry and the media will continue to study the legacies of both Nortel and Avaya as history lessons for many years to come.

What I know from my own 30-plus years of experience with NEC is that financial stability through diversification and creating operational efficiency has benefited not only us as a company, but our customers and partners through the years. Continuous improvement and innovation are probably the two biggest reasons for NEC’s 117+ years of longevity.

The next reason is our commitment to providing quality, future-proof unified communications and collaboration tools that will last and be relevant for many years to come. As a result, NEC has always had a ready willingness to step in and offer help to customers and partners who need it the most.

Another reason for our longevity is our ability to adapt and transform. NEC has reinvented itself numerous times through the years and will likely do so many more. As TalkingPointz Principal Analyst Dave Michels observed in his No Jitter coverage of our 2016 Advantage Executive Conference, we’ve done this most recently through the virtualization of our UC offerings, the launch of UC as a Service, and the integration of our UC solution set into a broader IT portfolio we call the Smart Enterprise.

Smart Enterprise

Want More Information?
Let us know!

Have questions about an NEC Smart Enterprise Solution? Fill out the form, and one of our solutions experts will be happy to chat with you!

 
 
 
 
 



By leveraging one of our Smart Enterprise solutions, businesses can also benefit from our data center technologies – like our fault tolerant servers, storage and software defined networking – as well as market-leading biometrics and analytics.

As a result, NEC was chosen as one of the 50 Most Innovative Companies by the Boston Consulting Group. Furthermore, Frost & Sullivan recently honored NEC for its “astute strategies for migration of enterprise legacy communications systems to modern solutions” with a 2016 North America Frost & Sullivan Company of the Year Award.

All of these things add up to one clear call to action.

If you are a customer or partner of Avaya and are unsure about your future, please don’t hesitate to contact us for a free consultation. At the very least you’ll learn something about our current programs and migrating to an NEC Smart Enterprise solution. At best, you’ll come away with a better idea of how you can protect your business down the line.

Stay tuned to NECToday.com for additional ideas on how you can future-proof your business with NEC.

What’s the Big Deal About High Availability Unified Communications?

Lately we’re hearing more and more about employee mobility trends and continuously accessible unified communications systems, about high-availability servers and the importance of staying connected at all times. So why is it such a big deal? Well, for one thing, the world has evolved into one huge marketplace where everyone seems to be on the move, and having answers and information at our fingertips, 24/7, has become an absolute necessity – or else!

With the growing need for employees to be able to access their work and collaborate with co-workers wherever they are, and at any time, unified communications applications are now commonplace. In fact, UC has become such a primary business concern that 56 percent of enterprise organizations recently surveyed by IDG Enterprise plan to upgrade or install new UC solutions within the next year, and 66 percent of small and medium sized businesses are also actively planning for upcoming UC improvements.

What’s driving the increase in UC investments?

With the increasing mobility of workforces today and a growing number of remote workers, it’s not surprising that the IDG Enterprise survey also reveals that 43 percent of the organizations reported their UC improvements were driven by the need for improved collaboration between their employees. The ability to resolve issues quickly, to share information, the immediacy of creative brainstorming and collaborative problem solving; these are some of the benefits of these powerful communication tools.

Similarly, 33 percent of the companies specifically attributed the upcoming upgrading of their UC to their need for increased flexibility for onsite employees and for mobile personnel. Enabling their employees to work from anywhere, and at any time, and to access and know when a co-worker is available and be able to quickly connect, these capabilities have serious value to businesses across all industries.

One of the top motivators for improving their UC was evident in the 42 percent of organizations who plan to install or upgrade for reasons of increasing their overall productivity—gaining the efficiency that results from streamlined operations and the immediate information share between departments and personnel.

What is High Availability anyway?

What does high availability of your unified communications have to do with the success or failure of an organization? Why is it so critical? Well, let’s look at what this term actually means.

*Gary Audin states that in the world of IT, the term High Availability refers to “a system or component that is continuously operational for a long length of time.” To repeat, that means constantly working, without any breaks or downtime, providing unified communications that are “continuously operational.”

Usually the ability of an employee to effectively do their job requires them to access the system to submit or alter their work. If the user cannot access the system, then it is termed “unavailable.” This kind of downtime impairs productivity, and causes workflow inefficiency and lost revenue. It has become critical for the UC system of any sized organization to be immediately accessible, with no disturbances or interruptions, for optimal business continuity.

What are some risks of being without a High Availability UC solution?

Your unified communications is mission critical, and accessibility is the very lifeblood of a successful organization, however these investments can suffer outages if not on a high availability infrastructure.  Without reliable redundancy and back up, you risk your people and your customers being cut off from information, workers from the workflow, and everyone from collaboration with each other. The loss of UC, for even a few hours, can mean a substantial loss to an enterprise.

What kind of losses are we talking about here? When your infrastructure fails for any length of time, along with lost productivity that obviously impacts revenue, businesses suffer the sharp decreases in customer satisfaction levels, the number of business relationships and customers lost, a damaged reputation, and the high costs of recovering that reputation.

In fact, the Ponemon Institute reported some interesting 2016 average costs associated with system outages:

  • Business Disruption – $256,000
  • Lost Revenue – $209,000
  • End-User Productivity – $138,000
  • IT Productivity – $62,000
.@PonemonPrivacy reported some interesting 2016 average costs associated with system outages. Click To Tweet

In Conclusion

So what is the big deal about High Availability UC? It becomes evident that the risk of incurring some of the losses that accompany broken communications and business disruption can become a very big deal.  For Smart Enterprises, UC has become a major focus for their strategic budget planning because it is a very big part of the success of their organization, and a critical factor for future growth.

Question: Do you have a true High Availability infrastructure that provides 99.999% UC reliability and prevents these kind of business disruption losses?

To learn more, download our Smart Enterprise eBook called “Achieving High Availability in UC” by industry expert, Gary Audin. This eBook takes a comprehensive look at UC and the importance of system availability plus examines the key components needed to build and sustain a UC-enabled environment.

(*Gary Audin has more than 40+ years of experience in computer, communications and security consulting and implementation, and is a well-known author of over 1000 blogs, articles, podcasts, white papers and webinars. Our quote is from the “Achieving High Availability in UC” ebook.)

 

Free Ebook: Achieving High Availability in UC

Free Ebook:

Achieving High Availability in UC

This eBook by communications and security consultant Gary Audin, president of Delphi, Inc., takes a comprehensive look at UC and the importance of system availability. Also examined in-depth are the components needed to put together and sustain a UC-enabled communications environment.

Why Make SIP A Customer Priority?

How prepared are you for what’s ahead and the technologies that will be the drivers of change in 2016?

Simply put, Session Initiation Protocol (SIP) and SIP Trunking can smartly transform your customers’ communications infrastructure for the better.Why Make SIP A Customer Priority?It can be done rapidly and cost effectively while seamlessly providing access to highly scalable unified communications so their employees and customers can benefit from faster responses enabled by anytime, anywhere availability on any device. Also by enabling ready access to feature-rich collaborative tools, your accounts could experience an increase in workforce productivity and cooperation.

Begin learning today why SIP is a smart technology investment. Get started with a free ebook courtesy of NEC.

Download Success with SIP 2.0 a 52-page ebook by Gary Audin, President of Delphi, Inc., to share a comprehensive assessment of SIP including:

  • SIP and related protocols
  • Session border controllers
  • SIP trunk values, benefits, and economics
  • SIP phones
  • Interoperability with SIP trunks
  • SIP trunk problems (IP PBX, SBC, trunk provider)and their resolution
  • Bandwidth calculations for VoIP and SIP trunks
  • Delivering a successful SIP implementation project

 

Free Ebook: Succhess with SIP 2.0

Free Ebook:

Success with SIP 2.0

Learning the value and operation of SIP is now important to anyone working in the field of communications and collaboration. Understanding what SIP does and does not support helps you to grasp the implementation issues involved.

 

 



UCaaS / Hybrid RFP: What Can Cloud Providers Deliver?

Are you looking to move your communications infrastructure to the cloud?

Download today the IP Telephony and Unified Communications System (Cloud and Hybrid Solutions), a free whitepaper / eBook from independent consultant David Stein of Stein Technology Consulting Group that offers the unique chance to examine cloud and hybrid cloud solutions based on actual vendor RFP proposals.

In this free eBook  you will get:

  • An unbiased evaluation of 7 proposed cloud and hybrid cloud solutions
  • Insight into the merits of 5 leading communications vendors
  • A explanation of vendor differentiators

Free Ebook: UCaas RFP 2016

Free #Whitepaper: UCaaS...What Can #Cloud Providers Really Deliver? Click To Tweet

Download and share this information rich eBook with your decision makers so they can also understand NEC’s leadership position in cloud and hybrid cloud migration, the value of a cloud-based UNIVERGE® Blue solution that is backed by NEC’s more than 117 years of expertise as a leading technologies and services provider.

Free Ebook: UCaaS RFP 2016

Free Ebook:

UCaaS/Hybrid RFP & Review IP Telephony and Unified Communications System

There are significant differences in offerings from the major vendors in terms of architecture, functionality and total cost of ownership. IT organizations are encouraged to work with their business units to understand their unique requirements and to articulate these in an RFP or other formal procurement vehicle.