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Death of a VoIP Equipment Vendor?

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?

Garrett Smith

Garrett Smith is a Technology Marketing and Sales Professional

This Post Has 3 Comments

  1. James Smith

    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.

  2. gsmith

    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.

  3. Pingback: Has the VoIP Service Provider Bubble Burst? | Smith On VoIP - Insights on VoIP Products and Services

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