Toshiba Exits North American Telecom Market

Toshiba Exits North American Telecom Market

By Phil Edholm March 25, 2017 6 Comments
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Toshiba Exits North American Telecom Market by Phil Edholm

At the end of the week before Enterprise Connect 2017, we were all waiting to hear the plan for Avaya to emerge from bankruptcy when another piece of telecom news came out, Toshiba announcing they are exiting the North American business telecom equipment market. In the letter to their dealers shown here, Toshiba announced that, as part of the overall global Toshiba restructuring, they are winding down their Telecommunications Systems Division (TSD) in North America. Channels were told that the last orders must be placed by May 22. While Toshiba is committing to support under current contracts, they are openly encouraging customers to move to third party support. Beyond the U.S. wind-down, Toshiba is also terminating its TDSD business in Canada and Mexico.

Clearly, the business telecom market has shifted in North America and vendors that are not well situated financially are increasingly challenged to succeed. Whether a company with heavy debt like Avaya or with a parent organization that is challenged like Toshiba, it is becoming increasingly clear that the overall financial health of vendors is a critical consideration in acquisitions. In some ways, this is an argument for cloud subscriptions that do not have a large up-front commitment to a vendor. I am sure we will hear more about this next week at EC17.


6 Responses to "Toshiba Exits North American Telecom Market" - Add Yours

George Platt 3/27/2017 9:14:31 AM

For many large enterprises this news may be shocking in two ways. First in understanding that Toshiba was even in the Telecommunications business and secondly in hearing that they were exiting the market. For many SMB's and Interconnects however the news of their exit from the business has created a significant problem. Many Toshiba exclusive interconnects are scrambling to stay in business while still others that may not have been exclusive are searching for replacement products for everything from small digital phone systems, to IP PBX products through to cloud UC products.

For those interconnects or resellers that have yet to speak with us or for those still searching for viable alternatives please give ESI a call. For the past 30 years ESI has been an expert in providing communications products to the SMB market. We have a solution that fits the needs of all SMB's and the interconnects that support them. From small digital solutions to sophisticated multi site cloud UC deployments ESI has products that improve the productivity and efficiency of any business.

We are committed to small and medium businesses and the interconnects that support them. At ESI "We Make it Easy to Communicate."
Karl Heiman 3/27/2017 1:21:59 PM

As a result of Toshiba’s TSD shutdown, business owners will look to the cloud for communication solutions with a low CAPEX and an immunity to obsolescence. This can be a complex process with seemingly endless options and confusing new terminology.

As a leader in Unified Business Communications, TelePacific Communications wants your business. We are ready to work with you to determine how our UCx solution to VoIP can make the transition to cloud based communications affordable and painless. Please contact me for more information.

Karl Heiman | Senior Business Consultant
Steve Maric 3/27/2017 1:37:34 PM

With Toshiba’s recent notification, you may have concerns about your telecommunications business and what the future holds. You may be asking yourself…what now? Is there a telecom manufacturer that I can be assured of that will be around for the long-term? The answers to your questions is NEC!
NEC brings 118 years of expertise in technological innovation benefitting businesses and people around the world. This expertise and innovation is the foundation in which all of NEC’s solutions are built upon – without exception – including NEC's UNIVERGE SV9000 Unified Communications solutions. NEC is a company that is financially stable, growing and here to stay.
Here are two of the many reasons to consider NEC:
• Frost & Sullivan recently honored NEC for its astute strategy to migrate enterprise communications customers to newer systems

• In 2016, NEC was chosen as one of the 50 Most Innovative Companies by Boston Consulting Group
BoB Bishop 3/27/2017 3:13:00 PM

This makes more space in a cluttered market for MITEL !
Ramesh Jayavaram 3/29/2017 7:49:58 AM

First Avaya, and now Toshiba.

The world of telecommunications is changing rapidly and customers are more educated about various options available now than just buying equipment worth thousands of dollars. Every business customer needs a reliable, affordable, scalable and flexible solution catering to their needs, not the other way around. The recent events in the industry clearly convey that the big guys were not customer-centric or innovative, and the results are clear. We expect some more old heavy-weight box sellers to fall.

We at Vodia, believe that the future of communications is in the cloud and very flexible where customers buy their hardware of choice, add features based on their necessity, and pay only for what they use. Our leading-edge PBX solution has empowered thousand of businesses worldwide to buy a communications system of their choice.
Laura Espinosa 4/20/2017 10:14:14 AM

It is unfortunate that Toshiba dealers have been put in a situation where they not only have to find and switch to a new provider, but also may feel forced into moving to the cloud. The cloud is great for many telecoms, but not all.

If you are a Toshiba dealer looking for a new provider, cloud or no cloud, Bicom Systems would love to partner with you. We have not only cloud, but also premise and even Key Systems solutions.

We have a promo going for any Toshiba dealers that transition to Bicom Systems. For more information:

Laura - Bicom Systems

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