NEC Leaves PBX Behind

NEC announces the end of premises-based PBX systems in the United States. Find out what businesses need to know.

Major Industry Update: NEC Leave PBX

NEC, a leading name in the telecommunications industry, has announced its decision to discontinue the production and support of on-premises business phone systems in the United States. This strategic shift will see NEC exiting the on-premises Unified Communications (UC) market entirely by March 2026, marking a significant transition for businesses relying on these systems. The company’s on-premises PBX services will be phased out, focusing instead on cloud-based solutions.

Why Is NEC Making This Change?

Several factors have influenced NEC's decision to exit the on-premises UC market:

Shift to Cloud Solutions: The telecom industry is witnessing a widespread move toward cloud-based Unified Communications as a Service (UCaaS) solution. Businesses increasingly prefer these over traditional on-premises PBX systems for their scalability, flexibility, and remote-work support.
Post-COVID Financial Challenges: NEC faced significant financial hurdles during the pandemic, particularly in its semiconductor division. This economic strain has prompted the company to pivot towards more sustainable and future-focused offerings.
Focus on Innovation: By discontinuing legacy systems, NEC aims to allocate resources toward advancing cloud-based solutions that align with current market demands.

Implications for Businesses

This transition poses challenges and opportunities for businesses currently relying on NEC’s on-premises systems:

Challenges

Small and mid-sized businesses dependent on these systems may face uncertainties during the transition, including cost and operational disruptions.

Opportunities

Moving to cloud-based UC solutions can enhance collaboration, streamline operations, and offer cost-effective, scalable communication infrastructure. Unified Communications supports remote work, improves customer service, and boosts competitiveness.

Key Dates to Remember

To ensure a smooth transition, businesses should note these critical milestones:

December 31, 2024

End of New Deliveries

Final date to order new on-premises phone system products.

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March 31, 2025

End of Shipment

Last date for shipment of hardware ordered before the cut-off.

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March 31, 2026

End of Service

NEC will cease technical assistance for these systems.

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March 31, 2026

End of Software Support

Software assurance support for affected systems will no longer be available.

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Affected NEC Phone Systems

The following on-premises phone systems will be impacted by this announcement:

Currently Affected Systems:

NEC SV9100
NEC SL2100
NEC 3C

Systems Previously End-of-Life:

NEC XN120
NEC Aspire
NEC SV8100
NEC SL1100

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Universal Connectivity: Your Partner During Transition

Universal Connectivity understands the challenges posed by this industry shift. We are committed to partnering with businesses to ensure a seamless migration to modern communication solutions. Our team provides:

Customized Transition Plans: Tailored strategies to align with your organization’s needs and budget.
Comprehensive Support: Round-the-clock assistance from experienced professionals.
Security and Reliability: Non-intrusive vulnerability assessments to protect your digital footprint during the migration process.

Get started with Universal Connectivity.

Frequently Asked Questions

Is NEC end-of-life?

Will NEC continue selling phone systems?

What systems are affected by this announcement?

Are there alternatives to NEC’s on-premises systems?

Planning for the Future

While NEC’s departure from on-premises systems marks the end of an era, it presents an opportunity to embrace innovative communication technologies. Universal Connectivity is here to guide businesses through this transformation, ensuring continuity, security, and operational excellence.

Schedule a consultation to discuss how we can support your journey to Unified Communications.