Yesterday, while working on a press release I reviewed a quote written for me. (Having the partner write the quote is usually a quick way to learn their priority for the release.) As I read the quote, I initially felt it was appropriate but later I decided it was the wrong tone. Since the release is pending, I'll paraphrase, "The economy is bad, we must limit business spending."
So what's wrong with that? The economy is bad. In fact, it was announced last week that the country has been in a recession for a year and parts of it (rural and small towns) have been in a recession since 2003. Therefore, that part of the quote is true. However, a slowing economy should be used by a business to position for the future. This does not mean reckless spending but it does mean making decisions that strengthen the business either through its infrastructure, personnel or product offering. The problem with the quote is the second half.
Limiting spending should not be a strategy in and of itself. Wisely, strategically or even tactically limiting spending would be much better. Additionally, do not assume saying "limit spending" infers those types of thoughts. In most cases business initiate an across the board cut that does not carve out just waste but effects even the best functioning areas of the business.
Telecom faces a very tough year when it comes to infrastructure spending. Early estimates see at least a 5% reduction. Moreover, the business community will react to reduce overall telecom expenses much more quickly and deeply than residential users. Moving to IP communications will reduce overall spending very quickly and if a business wants to retain its existing infrastructure, doing so makes the initial cost look even better. Legacy PBXs can leverage IP using media gateways. Broadvox offers SIP Trunking this way through key partners. Nevertheless, a business shouldn't make the move to simply limit spending; they should be making the move because strategically, it is the right thing to do.
Recently, I heard Warren Buffett remind us that that a slowing economy is the time to position yourself to make more profits in the future. So, the right quote is to say (again paraphrasing). "During a slowing economy, it is imperative for a business to make wise decisions about its future. Moving to IP communications, is one such decision."
"But how much will I save?"
See you on Friday...