Samsung Networks may be withdrawing from the business UC market. Although less prevalent within the UC landscape recently Samsung has been a hugely successful brand with apparently successful growth figures in the UK over recent years.
Rumours have been circulating over recent months speculating that Samsung will be withdrawing from the business communications market. Recently the rumours have heightened and it appears that a decision has been taken to withdraw their offerings for the business market place, although there has been no official announcement so far.
A world leader in display and mobile technology Samsung have a long history in the PABX and PBX telephony markets. Industry experts cite a lack of cloud alternative as an indication that Samsung’s focus lies elsewhere within their business and not in the provision of business telephony systems.
Samsung operates a full portfolio of products including IP Solutions, Office Desk phones and Unified Communications Solutions. With over 20 years’ experience manufacturing telephony products it may come as surprise to many that Samsung may be looking to exit the market. The landscape has changed significantly over recent years with the continued enhancement of cloud UCaaS and CCaaS solutions and it may be the shifting market that will force Samsung’s hand.
Having only recently announced an exclusive distribution deal with Nimans for supply of their UC suite to the UK market the immediate ramifications for partners and customers is yet to be confirmed.
With huge global revenue of over $200 billion across their vertical markets Samsung might be reflecting the importance of their business telephony proposal with any strategic changes. Their business telephony proposition accounts for just a tiny fraction of their huge finances. Samsung’s hugely successful mobile communications business accounts for nearly 25% and their semiconductor division, including their DRAM, SSD and chipset products, for around 20%. By contrast the their business telecom systems make up less than 1%.
It will be interesting to see how the market reacts and how this potential withdrawal will affect Samsung partners and customers. Nimans in particular would be affected within the UK market and focus on their reaction would be interesting.
Onlookers might also consider the potential ramifications for other more traditional PBX manufacturers such as Panasonic. Also Samsung’s possible withdrawal opens opportunities for other vendors to step in and target their existing customer base for upgrades and replacements.
As the momentum behind more modern cloud alternatives grows, the pressure on the more traditional providers to compete for a shrinking market increases.
