Market Report - PBX & Communications Platforms

Unified Communications PBX is now a mature product and those vendors who are going to offer a UC solution already have an established and proven product line. Competition is now moving to developing sector specific solutions and offering extended support services. Leading this move is Vertical Communications who hold a strong position in the global retail sector and have set new standards in the market by providing 5-year warranty on solutions hardware.

It is the customer facing business sectors that are hungry for the UC applications and ICON believes that throughout 2015 growth in the UC market will come from the customer-facing businesses. 

Retail -- Retail is a key market for UC solutions such as Wave IP. Customers in large global department stores have invested heavily in UC solutions. Likewise, garden centres, automotive dealers and other customer centric business are all seeing the benefits of the UC applications. 

Automotive -- Vertical Communications, the makers of the UC solution Wave IP, has launched and presented an automotive focused solution at the 2015 NADA the National Automotive Dealers Association in the US and in 2014 teamed up with Spectralink wireless to offer a UC wireless solution for retail and other customers. This sector focused solution strategy is expected to continue throughout 2015 as vendors of UC solutions look to find and dominate a sector.

Not surprisingly, the customer facing sectors of retail, hospitality and automotive are the big opportunities for UC solutions such as Wave IP. However, what and why the customers are buying UC based solutions is most interesting. 

Benefits of UC -- The ICON sales team report that often the reason a customer invests in UC based solution Wave IP is because it delivers the ability to track and manage customer communications, links with back office applications and provides the ability to link mobile users with the business applications. 

UC Applications -- The leading vendors have provided the core UC applications as standard to all desk handsets by for several years now. Vendors such as vertical Communications are now providing these applications to the mobile extension be that a cell phone or a business dedicated Wi-Fi handset. Solutions such as Viewpoint mobile delivers all the enterprise UC applications, including call recording, to the mobile handset giving the road warrior the same communications resource as their desk based colleagues. 

Wireless Solutions and how to sell them

Driven largely by the move to Bring Your Own Device (BYOD) and the absence of any uniform 3G/4G coverage in the UK market for wireless connectivity in the workplace (which is anytime, anyplace, anywhere) is expanding rapidly and represents a great opportunity for resellers. It’s not just about creating hot spots and there are some great applications out there that really build margin and lock in the customer for the reseller.

How distributors can help resellers expand in to this market and build new revenue streams

Selling wireless connectivity is all about providing the infrastructure and endpoints to enable business solutions. This solutions driven market is expanding rapidly with real time messaging applications, lone worker, health and safety and day-to-day business solutions driving growth. Moving into this market means selling the solution, the business benefits and the business improvement that can be gained from a total solution. 

Channel partners who have traditionally sold wireless connectivity for voice applications are often unfamiliar with the business problems and needs of a sector and the solutions and applications available to help solve these and enhance business. In addition, they may find themselves competing with VARS who specialises in delivering sector specific solutions. Hospitality and retail are classic examples where specialism counts. These are large markets requiring some specialist sector knowledge and solutions. 

That is where choosing to work with the right distributor matters. Bringing a distributor, such as ICON, in at the early stages of a bid can mean the difference between winning and loosing. Value added distributors, such as ICON, with extensive knowledge of the sector and the available solutions can add the knowledge and experience to the bid that would otherwise be missing.

Often this experience and knowledge of how the sector works can be the key to unlocking an opportunity. It is knowing how the solution influences the KPI (key performance indicators) of a business that can win the bid. VAR distributors such as ICON understand how by integrating solutions such as voice, real-time messaging and alarm monitoring across a wireless network can influence the KPI of a business and how this can be used to open up the bid to the reseller.

What applications are selling well and where?

The popularity of an application depends on the sector being targeted. In client facing, businesses such as healthcare where staff can be exposed to the dangers of physical abuse staff safety solutions are popular. To deploy such a solution requires a handset that can support the solution with features such as an emergency call button, man down sensor, running sensor and no movement sensor. The problem for many businesses is that many BYOD devices do not support these features. 

In service focused industries, such as hospitality, solutions that support guest service and safety are popular. Typically these may be solutions for pre-alarm warnings, guest service call and staff task scheduling.

What constitutes a BYOD checklist for wireless solutions providers?

The key and most important check is will the infrastructure and endpoints support the applications you want to run now and in the future, deliver these at a long-term cost you can afford, and provide the opportunity for future expansion. 

Will 4G access impact this wireless market?

4G is a wireless connectivity technology that supports mobile handsets. It will have significance if the handsets have some advantage in delivering the solutions needed in the workplace. The typical BYOD mobile handset is not suited to long term continuous use in the workplace. 

The mobile handset is not sufficiently robust to survive sustained use in full-on operational environments. In comparison, the purpose built android-based handsets, such as the PIVOT from Spectralink, can deliver everything a mobile phone is able to and is also withstand the knocks and scraps of the workplace.

MS Lync from independent distributors perspective

Can Lync realistically be sold to SME users? 

“SME’s do buy MS Lync.” says Mark Shane, Sales Director at ICON.  Mark explained,

Solutions are MS Lync approved

“ICON is the only UK distributor of MS Lync approved wireless mobility solutions.  These solutions scale from SME to enterprise level and we are seeing as many of these being sold for integration with Lync solutions deployed in SME’s as in enterprises”

Are there any ‘Lync Busters’ out there?

In terms of delivering UC capability Lync is one of many solutions available.  However, in its target niche it is a strong contender with an almost unassailable position.  Mark Shane, Sales Director at ICON , explains

“ICON distributes a range of UC solutions as well as MS Lync approved mobility solutions and it is the Microsoft tag, pedigree and connections that hold sway in its target niche.  This means that in those business and enterprises which are committed users of Microsoft solutions Lync is the natural solution and a contender has to be able to exceed the performance of the Microsoft brand for delivering reliably. There are very few UC solutions which have the brand credentials to do this.”

Wave from Vertical is a contender

That is not to say that MS Lync will dominate the entire UC market.  Outside of its target niche where the emphasis shifts from brand credentials to features, functionality, and price, MS Lync competes on a more level playing field with other UC solutions.   Mark explained

“In niches which are brand agnostic and the focus is more on features, functionality and price than on brand there are other UC solutions that can stand up tall against Lync.  Solutions, such as Wave from Vertical Communications, which are continually stretching the envelop by offering novel business apps in a very advantages commercial package can often be a strong contender against Lync especially in vertical sectors needing specialist solutions.”

Mark added

Lync is unquestionably a force to be reckoned with in the market and it has to be a strong and confident brand to take it head on in its target niche.  ICON and our partner vendors who provide MS Lync approved solutions are betting that there are very few who can do this successfully in its target niche.

The UK PBX market - a review in 2012

Where is the market is going?

Full UC trend continues

The structural trend towards full UC is continuing with vendors packaging more UC features into their standard offering.  The Vertical Communications Wave and Microsoft Lync CPE solutions both offer a mobility solution for mobile phones.    

Downwards for price

However, a key trend to emerge in this market since the start of the year is the downward pressure on the price performance curve.  In the last quarter vendors have launched CPE solutions with increased functionality and higher connectivity at price points which drive the solution down the price performance curve.   

The new FortiVoice IP-PBX

Vertical Communications has bundled 5 years warranty and a free BYOD app with its CPE Wave IP, Fortinet has rebundled and renamed the TalkSwitch CPE solution in a new offering called FortiVoice with offers a substantially lower cost per line for the end user.

Longterm this downwards pressure on the price performance curve will have the effect of tightening the market those in the channel with solutions which are not value competitive.

 

Integrated application- BYOD functionality

True Out-of-the-Box integration is rare in the CPE market but a few vendors are beginning to bundle applications with their solution.

The focus seems to be on BYOD functionality and UC capability for BYOD.  The top vendors are Microsoft with its Lync platform and Vertical Communications with tis Wave solution.  Both offer free mobile apps which extend the capability of the CPE PBX to the mobile phone. 

The Wave BYOD solution is so integrated with the CPE that a call made by a mobile phone user is indistinguishable from one originating from a desk handset.

Hosted telephony & its impact on CPE solutions

CPE business to continue

Hosted solutions have not traditionally competed with the CPE solutions distributed by ICON and long-term the impact on of hosted solutions our Channel Partner CPE business is not expected to change radically from what it is today.    

ICON has always acknowledged the importance of hosted solution in the marketplace but is of the view that this is not a disruptive technology.  Longterm it is unlikely that the market will migrate to hosted solutions.  

The reasons to buy hosted

The motivation for hosted as opposed a CPE solution is driven by the financial imperatives of the firm not its communications requirements.  Hosted or not hosted decision is firmly based in the firms need to manage Capex by using Opex.  The only scenario in which hosted solutions will displace CPE equipment is as a result of some financial imperative which makes investment in non Capex solutions attractive.  A fiscal policy which favoured Opex solutions would have this impact but in the medium term is not likely.

Accreditations costs - slipping out of control?

As distributor for a range of global brands ICON has always recognised that the cost of accreditation can be a formidable barrier to the Channel taking up a solution. When you need to guarantee a certain percentage of staff skilled in the solution and hold stock this can be a significant capital expense even for an established firm.   

High accreditation costs have the effect of tying a reseller into a vendor restricting the options for growth.   

In the UK ICON has provided one of the most open accreditation schemes available.  Its solution training and accreditation for its Vertical, and Fortinet IP-PBX solutions have always been delivered at subsidised cost. 

Butterfly Competition

To mark the launch of the Butterfly ICON, is promoting a competition to organisations to win a Butterfly voice mobility solution .

Competition Prize

In February, Polycom, also known for its video conferencing solutions, launched its newest wireless handset series: the KIRK Butterfly.  The Butterfly is the latest in a line of handsets designed to give mobility to staff ranging from shop floor employees to boardroom executives and at the same time support the latest Unified Communications solutions from Microsoft and others. 

A voice mobility solution from Polycom integrates with an organisations telephone solution and work processes to help staff at all levels to,

•         Manage on the move

•         Get crucial information immediately

•         Build closer more effective teams

•         Eliminate delays, kick start work

In short, a voice mobility solution makes business run smoother (to learn more about how these solutions can benefit the workplace check out our  “Benefits of a mobility solution” web page.

A Polycom voice mobility solution can integrate with other on-premises applications, such as nurse call systems, location-based services, and voice recognition systems to streamline everyday business processes.  Polycom voice mobility solutions are used in organisations ranging from small offices to large process plants where the environment can be hazardous and potentially explosive and the handset range includes speciality handsets for medical, industrial and office use.   

The new Polycom Butterfly solution is aimed at carpeted type environments (offices, retail floors, schools, hotels and similar).  The Butterfly voice mobility solution is supported on the Microsoft Lync Server 2010.  It can be used to connect to Microsoft UC environments and with hosted IP telephone solutions. 

The Butterfly handset is available in a range of fashionable colours - white, black, green, red, and blue. This wide colour palette has been provided to enable the handset to be used to underline business identity or to distinguish employee groups.

Mark Shane, Sales Director at importer and distributor ICON says,

“Butterfly delivers a handset for public workspaces and offices where the accent is on style image and brand.  Until now business handsets have been strictly utilitarian but with Butterfly the handset becomes part of the company image.  It says modern, forward looking and leading edge and delivers this at a very competitive price and without compromising the Polycom KIRK brand values for performance, build quality and toughness. “

The competition closes at 11.55pm on the 30 June 2012.  To find out how to win a Butterfly Voice mobility solution for your business visit www.icon-plc.co.uk./Butterfly where you can learn more about the new handset and submit an entry.