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INFOTECH STUDY: POST WARRANTY MAINTENANCE PRICING SIGNIFICANTLY HIGHER FOR SMALL IP-PBXS THAN TRADITIONAL KEY TELEPHONE SYSTEMS - Coverage for Larger Systems Competitive with Medium and Large PBXs June 5, 2001 - IP/PBX Markets PARSIPPANY, NJ June 5, 2001 - End users that purchase a small IP-PBX (Internet Protocol Private Branch Exchange) system can expect to pay significantly higher rates for post-warranty maintenance than those that chose to purchase a competing Key Telephone System (KTS). According to a report from InfoTech (www.accessintel-infotech.com), IP-PBX maintenance providers charge 105% more per port on average than their traditional KTS counterparts do for configurations smaller than 100 ports. "On average, an annual maintenance contract for an IP-PBX under 100 ports, will cost an end user more than double what they would pay for the same level of coverage for a comparable KTS system," said Frank Stinson, senior product manager at InfoTech, research and consulting firm. According to Stinson there are 2 major reasons for this. "The first is that some small IP-PBX manufacturers wish to discourage end users from purchasing a maintenance contract, as a way of promoting the ease of administering their systems. Their position is that because end users can learn their user-friendly administration packages, they can handle basic problems and moves, adds, and changes themselves." For channels that have traditionally focused on data networking, it is more an issue of adapting to the voice communications market. "In the data networking market, most end users perform their own maintenance. If there is an equipment problem, they will typically call a manufacturer's support line first, and then return the faulty component if that does not resolve the issue. Most data networking channels view an on site visit by a technician as a luxury, and charge a corresponding premium price for that level of service. However, for end users who are accustomed to the level of service they receive from traditional voice system channels, prompt on site service is an expectation," Stinson added. According to the study, the cost of coverage for IP-PBXs larger than 100 ports, however, is similar to what one would expect to pay for competing medium and large PBXs. "For these solutions a substantial portion of annual maintenance costs applies to system hardware such as call management servers. In small configurations that require server redundancy, this can be quite expensive. But, for large configurations that allow these costs to be spread over many ports, IP-PBX systems become competitive," explained Stinson. The InfoTech study includes profiles of maintenance offerings from both IP-PBX and traditional PBX and KTS channels including: 3COM (NASDAQ: COMS), Cisco Systems (NASDAQ: CSCO), Avaya Communication (NYSE:AV), Nextira, NEC (NASDAQ: NIPNY), Norstan Communications (NASDAQ: NRRD), Verizon (NYSE: VZ), SBC Communications, Inc. (NYSE: SBC), Qwest Communications (NYSE: Q), Bell South (NYSE: BLS), and Sprint Communications (NYSE; FON). InfoTech is a subsidiary of PBI Media, specializing in global information and professional services for the telecommunications and data networking industries. InfoTech offers a comprehensive scope of information and professional services, including custom project consulting, market and competitive intelligence programs, tactical sales support tools, primary research studies, industry conferences and custom marketing programs. Further information about InfoTech can be obtained at the company's web site at www.accessintel-infotech.com. To purchase a copy, or learn more about this study, please contact Craig Borne at infotech@accessintel.com or at 973-602-0137. |
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