Growth Opportunities in UC Endpoint OPEX Models

Growth Opportunities in UC Endpoint OPEX Models

Several providers, including Microsoft, Zoom, Neat, and Crestron, announced OPEX programs focusing on multiple UC endpoints in 2020-21. This move reflects the intense and growing interest in the OPEX space, which has been fueled in part by the pandemic. However, OPEX, particularly leasing as a business model, has been in practice for several years, with a focus on IP desktop phones. Recognizing the immense growth potential associated with delivering a consolidated device+ UCaaS service offering, vendors and UCaaS service providers have capitalized on this opportunity over the past five years. The accelerated adoption of cloud telephony is a key driver for the growing demand for desktop phones on OPEX. This financing model relieved businesses of some significant challenges such as hardware lock-in, unpredictable cashflows, and product obsolescence, while also aiming to improve employee productivity. OPEX allows businesses pay an ongoing monthly fee that builds in a more reasonable life cycle. Additionally, providers can also bundle in support and managed services. Acknowledging the multiple benefits associated with the headsets on OPEX model, other ecosystem participants devised a strategy to extend the model to other UC endpoints such as video, headsets, and end-to-end room devices.

This study discusses how OPEX programs are structured for various device types as well as, how different ecosystem participants can leverage the growth opportunities to stay ahead of the competition.