Cisco’s SMB Solution Better Be “Hands-Off”

Low-dollar phone systems Must Be Low Touch For VARS to Succeed

The success of the recently announced Cisco Smart Business Communications System (SBCS), that delivers unified communications capabilities to the small medium business, will truly center around the ability for Cisco resellers to easily sell, install, and support the solution. Historically, resellers and integrators have stayed away from the small in small medium business because there is not enough money in the deals to match the amount of hand-holding required to properly sell, install, and support a low dollar solution. With advent of VoIP, a driving force behind the new Cisco SBCS, reseller are now forced with price pressure before they even walk in the door, due to those with marketing dollars in the VoIP industry choosing to spend on the “save money aspect.”

Linksys LVS9000 Is An Example of A High Touch Failure

The small medium business is a different animal, one that wants “something that works” and “something that is affordable.” The marriage of these two wants, at least in the VoIP industry, to date, has been unsuccessful. Linksys, Cisco’s little brother, thought they had a hit (and so did I) with their $399 Linksys SPA9000 phones system for the 15 seat and under business. Unfortunately, the device, which delivered the ultra-low price point that made it affordable for the masses, failed to deliver on the ease of use and operation necessary for it to be adopted by the masses. In addition, due to the low profit gained form the sale of the unit, VAR’s and solution providers were unable or were not profitably (or even break-even) able to support the device due to the low amount of profit generated for the sale of the device.

After all, what small business is going to pay $399 for a phone system, and $3-5,000 a year to support it. Numerous VAR’s abandoned ship or stayed away because of this.

Cisco Knows The Enterprise, But Does It Know the SMB

I for one, am not convinced. I strongly question their ability to get VAR’s to really want to sell this product to the under 100 seat small medium business.

Why?

To start, Linksys, their residential, SOHO, SMB division failed with their SMB phone system offering. If the folks at your company who are working with the target sector daily are unable to pull it off, what leads one to believe that the folks dealing with the 800 LB gorilla’s of the world is going to be able to deliver the right solution. Next, Cisco is notorious for NOT making things easy, especially the set-up, installation, and on-going maintenence of their equipment. What leads one to believe that this is going to change?

I wish Cisco all of the luck, but unless their small business phone system is low touch, they will probably find themselves in the same position as Linksys is with their SMB solution - disappointed.