Recently, the leading technology company, Panasonic, revealed that it would be closing its business communications arm over the course of the next two years. The announcement arrived in the form of an email from the Head of Business Communications for Panasonic, Carlos Osuna.
Ultimately, Panasonic felt that business communications were no longer a realistic option for the brand. Lack of factory assets and the inability to compete with other major brands meant that Panasonic was losing more opportunities than it was gaining.
Manufacturing will still continue in this region up to 2022, and companies will be able to access spares and support until 2029, but the opportunities stop there. As a big fan of Panasonic products, I felt compelled to give my thoughts on the latest decision.
Fond Memories of Panasonic
The two things I remember the most about Panasonic phone systems are their DDKs, and their awesome DECT phones. Way back in 2000, before UC Today, I was installing and fixing the Panasonic PBXs, and I have great memories of the technology back then. More commonly in those days, it was the DBS systems or A-Series that I was working with. Then eventually the KXT and KXT-D range.
I was a fresh-faced communications engineer in those days, 19 years old, with a set of ladders on the roof of my car, and a roll of four pair cable in tow. Life on the road was fun, there was no such thing as remote programming or PC programming on Panasonic devices back then! When things went wrong, it was me and my Vauxhall Astra estate car that took to the road to set things right.
Now, as we all know, the old fashioned strategies for rolling out business communications weren’t without their challenges. Wiring was usually a pain, and the central control units (CCUs) had tiny DDK style connectors that I used to cut my fingers on when pulling them open with a screwdriver.
Installing phone systems was challenging, but it was also satisfying. When the job was done, and the lights flashed on the handsets – I knew I’d done something right.
Looking Back on the Old Communication World
Everything back in those early days was a lot more complicated than it is today. You needed a lot of knowledge and experience to successfully provision a phone, and things didn’t always go according to plan. Programming was something that we did through a handset, and it usually felt like plotting the course of a battleship on a calculator-style interface.
On the other hand, you got the benefit of Panasonic DECT phones that were practically bulletproof. Like the PBX solutions they built, these phones stood the test of time. I think I still have a device from 20 years ago in a box in my loft, I just don’t have the PSTN line to plug it into anymore.
Since the early days of working with Panasonic, I’ve learned a lot of things. Like old cars and mobile phones, technology evolves, and as things evolve, we need to grow with them. Whether you’re the MD of a reseller business, a salesperson, or an engineer, transformation is inevitable. You either need to roll with the tide, or you won’t survive in the modern era.
So, why didn’t Panasonic evolve with us and go large on UCaaS? I’m really not sure about the answer to that. There seemed to be some effort from Panasonic to move in this direction in 2019. We even posted a story with Panasonic partnering with Blueface in the EU for new cloud communications services.
Shortly after that, of course, Blueface sold to Comcast, and then not long later the pandemic hit. Now, every business needs a cloud solution, and maybe Panasonic are just too late to the race.
Good Luck Panasonic
It’s a shame to see a major brand like Panasonic leaving the market, but with so many entrants to the landscape in the last few years, it’s not a surprise to see Panasonic go. If I were at the head of that company, I’d probably go and give RingCentral a call and join the queue to Vlad’s office. It seems like every other legacy vendor in the phone space is looking to the Magic Quadrant for UCaaS market leader for a lifeline (solution) right now.
Who knows what this ever-changing landscape will deliver next?
