Death of a VoIP Equipment Vendor?
Posted: August 4th, 2006 | Author: Garrett Smith | Filed under: VoIP News | 3 Comments »I am surprsied that I did not catch this one sooner (guess I should start reading Greg Galitzine’s blog with increased frequency). It lookes like IP PBX systems vendor Zultys has ceased operations and let go of most of the company’s 200+ employees. According to Zultys founder and CEO, Ian Miles, the company has simple ran out of money and can not find additional funding at this time.
This is unfortunate news. Prior to this, Zultys was a highly touted IP PBX systems vendor, with a top notch product line. It is difficult to imagine, VC’s not wanting to fund a company with as much media and press coverage (they were featured almost monthly in magazines such as Business 2.0, Inc., and Entrepreneur) in addition to the all of the industry awards they have won. I guess this is an example of live by the VC, die by the VC?
Could we be seeing the beginning of a VoIP industry bubble burst?
Not a burst bubble, merely a busted flush, a whim-wham. Nothing.
Why do you think they have at least one customer on their success story page who doesn’t even own a Zultys product?
If I had my own company I’d buy Cisco, Avay, Mitel, any one of people who know what they are doing and are here to stay. Or I’d wake my brain up and use a hosted service. Who needs a PBX. 1980s thinking.
Zultys product brings not a single unique selling point. It’s a me-too.
James:
The point you made in your reply is exactly why I thought of a bubble bursting. Your description of Zultys as a product deviod of a unique selling feature is exactly the sort of comment you would make about a company within an industry that is about to burst.
How many other me too IP PBX systems are there on the market today?
How long until the other me too systems fall? It seems that everyday a new company, or an existing one is coming out with their “own” solution.
Also, I agree with your advice to go with a brand name solution. There are many excellent, unique IP PBX systems out there. The onus is on you, as a consumer to decide which one fits your business the best.
Hosted solutions are good for SOHO applications, but are not cost effective for the SMB, or Entreprise, as they scale poorly, resulting in a cost per seat equal to or greater than a premise based solution.
[...] This un-neccessary price reduction is not unique VoIP Service Providers. It seems that VoIP Hardware vendors, especially IP PBX vendors, are battling themselves to see who can go out of business first. The IP PBX that cost you $45,000 a few years ago, can now be found for as little as $499.99. Now I know Asterisk is free, and that must of the low cost systems are built off of Asterisk, but if they match a Cisco, Nortel, or Avaya in features, should they not be in the same universe when it comes to price? Would a company not be happy paying $20,000 today for a PBX with more features and functionality then the one they paid $45,000 for just a few years ago? I think they would have, but it is too late. Too many have come in with a low cost strategy, and with Asterisk, just about anyone can become an IP PBX vendor. [...]