Earlier this year, telecommunications giant, Avaya, filed for Chapter 11 bankruptcy. 
Three months ago, Toshiba announced plans to shut down its business phone division, leaving dealers across the nation shocked and scrambling to come up with alternative solutions. Brian Metherell, vice president and general manager of Toshiba America Information Systems’ (TAIS) Telecommunication Systems Division (TSD), sent a letter to dealers notifying them of the shutdown.
When it comes to IP phone systems, Managed Service Providers are missing opportunities
to increase value to their clients in a variety of ways.
The Issue
IP phone systems are replacing traditional systems for a variety of reasons. The primary of which is feature sets. IP systems provide a much richer set of features than a traditional business phone system, including IVR, enhanced voicemail, and advanced call routing options. Like their older cousins, premise-based IP phone systems are largely being ignored by managed service providers. Why? Typically, it’s because the phone system is still managed and supported by the manufacturer or manufacturers rep who provided it. The MSP may simply see it as a device on the network. Understanding a bit more about how premise-based phone systems are architected may offer the MSP additional opportunities to add value to the relationship with their client and add profit to their bottom line.
Not too long ago, the telecom world was divided up nicely. Everyone had their place and 
played their role. The phone system manufacturer made premise-based hardware business phone systems. Carriers ran lines into those systems and billed the customer directly. ISP’s handled internet access, and Managed Service Providers handled the LAN. Even the copier folks only fixed copiers. Everyone was happy and everyone got paid for managing their little piece of the communications pie.
SD-Wan (software-defined wide area network), is a relatively new WAN technology.
Until now, businesses have relied on private WAN architectures like MPLS to support their remote sites. The idea being that their remote users should have the same application experience as those directly connected to the corporate LAN.
Until now, companies would have to run T1’s or some other dedicated access to small remote offices if they wanted a guaranteed quality of service. While good on the service level, ever increasing bandwith demands by cloud-based applications has rendered the old reliable T1 inadiquate as the T1 only supports 1.5 MBPS speed. Add to it that the cost of a T1 can range anywhere from $300-$500/mo on average, and a traditional MPLS installation becomes very costly depending on the number of remote offices needing support.
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As interest and adoption of SD-WAN technology continues, the question as to whether
or not MPLS networks are still relavent has naturally arisen. While it’s going to continue to be a topic of increasing debate over the next few years, here are our thoughts on the matter.
First, make no mistake, SD-WAN is the WAN technology of the future. It offers way too many benefits to be considered a companion technology to other WAN architectures like MPLS. SD-WAN leverages public internet access and uses software to intelligently route traffic. It’s nimble, dynamic, and plays better with cloud-based applications. And the cloud is where it’s at and where it’s been the past five years.
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