by Joe Taylor Jr.
Recent M&A activity in the business telephone systems industry raises concerns about service levels, pricing, and support.
For CIOs, department heads, and other company leaders staked with purchasing telephone systems, the process for selecting vendors often requires lots of time, energy, and conversation. That's why sudden mergers and acquisitions can jar business decision makers, especially when vendor relationships, compatibility, and product quality distinctions help shape corporate policy. Recent news about telecommunications mergers and bankruptcy auctions has left some technology managers nervous about recent phone system purchases and pending proposals. Buyers can use a handful of critical tips now to prepare for any future industry upheaval.
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Select Phone Systems with Interoperability Guarantees
Over the past decade, the digitization of business phone systems has required vendors to support common communications and quality standards. While manufacturers and data providers put their own spin on products and solutions, many companies now produce equipment that can be ported to a competitor's network if absolutely necessary. CIOs no longer have to feel "locked in" when a less desirable competitor purchases their favorite vendor.
Understand Distinctions Between Phone Systems and Phone Service
With standards-based equipment in place, company leaders find it easier to divorce the process of managing handsets from sourcing data pipelines. Although some vendors marry telephone equipment to data connections in complex leasing agreements, more phone systems companies allow customers to split hardware management from phone line maintenance. Just as deregulation made it easier for consumers to purchase their own handsets, industry cooperation makes it possible for a company to change carriers without tossing away previous generations of effective equipment.
Develop Relationships with Honest Phone System Vendors
Even in a world of free online quotes and heavy comparison shopping, most business leaders make purchasing decisions based on the quality of their relationships with vendors. That doesn't necessarily mean enjoying rounds of golf or skybox invitations from eager salespeople. A strong relationship with an account executive means having a real understanding of a vendor and its culture. If a well-liked, influential sales professional remains with the merged phone systems provider, company leaders can often rest assured that they should be taken care of. On the other hand, if a respected brand and culture disappears entirely in favor of a less popular brand, purchasing managers can start looking for new vendors.
Review Phone Systems Contracts for Clauses Involving Successor Companies
In most cases, a phone systems vendor's contract specifies the impact on customers of any unforeseen merger or acquisition. Sometimes, a company buyout may release a customer from the remainder of a contract or a lock-in period. In other cases, a new company simply absorbs the current contract requirements, even if it requires a pricing or a service exception. Industry experts warn prospective customers to review contracts for language that allows a successor company to change the terms of an agreement.
Not every purchasing manager may embrace the reasons behind a phone systems industry merger or acquisition. Raving fans of disappearing companies may feel disappointed to have lobbied for a brand that fades away. Companies that previously fired a vendor may become frustrated to discover them back in their business after taking over a competitor. Keeping an open mind about a merger can help allay some fears. In many cases, buyouts and mergers result in stronger service levels and fewer worries that a vendor should be around for the long haul.
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About the AuthorJoe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.
