Earlier this month, Cisco announced the bundling of multiple Cisco products aimed at the SMB market, specifically businesses with 8-16 employees (i.e. that's how many phone sets are supported.) Dubbed the Smart Business Communications System, it consists of a bundle of of Cisco VoIP, switch, router, firewall, wireless access point, VPN and management software.
Cisco announced this at their partner summit, clearly indicating who would be the channel for delivering, and more importantly installing, these services for customers. Businesses that small rely on a service provider or integrator to sell and install voice and network services unless someone in the business has a pre-existing "geek chromosome".
Rather than a "business network in a box", this is a bundling of multiple Cisco products: hardware - UC 500 router/IP PBX/firewall/VPN, CE500-8PC power-over-Ethernet switch, 7931 IP phone, Wireless Express Access Point (pre-configured for security), and software - Smart Assistant remote configuration and troubleshooting software, Configuration Assistant (to configure all SBCS elements), and Monitor Manager and Manage Director.
Everyone has wondered what Cisco would do in SMB after its investment in the retail market through Linksys, and SBCS represents a clear move into the lower end of the SMB market. Cisco is treading into a part of the SMB market many have feared and question how to make money in. Key to this working of course will be showing the channel they can make more money with Cisco gear rather than other providers. The cost to the customer has got to be very competitive as opposed to other alternatives. This is yet to be seen so we'll have to watch the uptake on Cisco SBCS by the channel.
In addition to hardware/software cost, a very important part of this profit equation is largely going to be the ease of installation and operation of Cisco's SMB equipment. (Garrett Smith of Smith on VoIP commented on this as well.) Installers are going to insist that installation be quick and easy so they can either focus on other differentiated services or (more likely) quickly move on to the next customer installation. Ease of use has never been a Cisco strength. Even recent attempts through the Express product line and it's GUI-like configuration software haven't changed the minds of many about Cisco's ease of use.
When it comes down to it, in this part of the market hardware is hardware - the customers don't much care. If the last Linksys broadband router failed, then lets try Netgear this time. It's about cost to the customer and cost incurred by the channel to deliver. A law office with a staff of 8 isn't going to care if it is Cicso, Netgear or XYZ gear. They just want it to get installed quick, and never have to call the service provider back because of problems. The secret to solving the problem here is enabling the channel to deliver services cost effectively and make good money at the same time.
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