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NEC On prem phone systems
Nathan Morrison September 23, 2024 0 Comments

NEC announces move away from on-premise phone systems

In a significant shift for the telecommunications industry, NEC has announced it will no longer be involved in the on-premise PBX (Private Branch Exchange) phone system market. For years, NEC has been a key player in this space, but changes in the industry have prompted this decision. If your business relies on NEC’s on premise PBX system, understanding the timelines and impacts is essential for smooth future planning.

Why Is NEC Stepping Away from On-Premise Systems?

Several factors have influenced NEC’s decision to exit the PBX market, primarily the growing demand for cloud-based communication solutions. As businesses embrace flexible, remote work options, the need for traditional on-premise phone systems has significantly declined.

The rise of remote work during the COVID-19 pandemic has only accelerated this trend. Businesses are increasingly seeking scalable, cost-effective, and accessible solutions—benefits that cloud-based systems provide far more easily than on-premise alternatives.

Key Dates for NEC’s Product Lifecycle

If your business uses NEC’s PBX system, understanding the following key dates is critical for making informed decisions about your communication needs:

  1. End of New Sales of Hardware:

    • 12th December 2025: This is the last date to place new hardware orders with NEC Australia for any new implementations or expansion needs.
  2. End of Hardware Shipments:

    • 31st March 2026: NEC will stop shipping hardware by this date for any orders placed before 31st December 2025.
  3. End of Add-on Sales for Software Licenses:

    • 31st March 2030: After this date, no further purchases of software licenses will be available.
  4. End of Support Services:

    • 31st March 2030: NEC will no longer provide contracted support services, including technical support, field services, incident management, or hardware and software support after this date.
  5. End of Software Maintenance:

    • 31st March 2030: After this date, no new software patches or minor releases (e.g., security updates) will be provided by NEC.

What Does This Mean for Your Business?

If your business currently uses NEC’s PBX system, NEC’s withdrawal presents a few key challenges and opportunities. Here’s what you should consider:

1. End of Hardware Sales – 2025

With NEC stepping back, ongoing hardware sales will cease at the end of 2025. If you have a large PBX system and wish to ensure its operational continuity through to its software license & support period of 2030, we’d suggest investing in handsets & critical spare parts to see you through. We can assist with this process.

2. End of Software License Sales & Support – 2030

As security updates, ability to license additional hardware & support will cease as of this date, it’s essential for you to source an alternative phone solution prior to 2030. Having an unsupported or security patched phone system in your business can leave you open to compiance or security issues. We will also not have the ability to seek support from NEC regarding your phone system.

3. Switching to the Cloud

Consider moving your phone system to the cloud. Cloud-based PBX solutions offer many benefits, including greater flexibility, cost savings, and the ability to work from anywhere. Cloud platforms are designed to meet the needs of today’s dynamic workplaces, and shifting to the cloud can help future-proof your business communications. We offer NEC Univerge Blue & Cirus Networks CloudPBX solutions and trade in options for your existing hardware. We can also assist with a Microsoft Teams Phone Solution.

4. Migration and Integration

Moving from an on-premise system to the cloud isn’t just about switching technologies. There’s a lot of planning that goes into ensuring your system is migrated properly and that your new cloud system integrates seamlessly with your existing infrastructure. A well-thought-out migration plan will help you avoid disruption and ensure a smooth transition.

Looking to the Future

While NEC’s decision to leave the PBX market might feel like a big change, it’s also a chance to embrace new technology and improve your business communications. Cloud-based phone systems offer more flexibility and efficiency, making it easier to stay connected with your team and customers—no matter where they are.

At the end of the day, NEC’s exit doesn’t have to be a setback for your business. By staying proactive, exploring your options, and finding the right partners to support your transition, you can turn this shift into an opportunity for growth and digital transformation.

Contact us today for more information or to arrange a quote to move to a more modern cloud solution.