Toshiba Business Communications Division (BCD) announced it plans to withdraw from UK and Irish markets in early summer. This announcement comes after the company admitted to overstating profits for the last six years. With an expected 550bn yen ($4.5bn) annual loss and subsequent axing of 6,800 jobs, Toshiba are undergoing a major restructure.
A spokesperson for the company said: “After careful consideration, Toshiba has decided to move its IP Edge and Strata CIX products into technical support phase on the 1st June 2016 for the UK and Irish market. Toshiba is committed to providing ongoing technical, licensing and spares support to its partners and customers and is already in communication with relevant parties regarding this decision to assist in their current and future planning.”
Stephanie Watson, General Manager, MZA gave her view on Toshiba’s announcement that it proposes to withdraw the existing Strata CIX and IP Edge from the UK, stating that this was not unexpected given the relatively small portion (<1%) of market share Toshiba held for the past few years, as well as its desire to focus activities on areas of greater opportunity, observed.
She went on to say: “Importantly, Toshiba will offer technical support to existing customers and channels, and naturally those customers and channels represent an opportunity for other vendors.”
According to Ms Watson, Toshiba has a much stronger position in the US market and has already introduced cloud solutions in that territory: “As Toshiba rounds out its global portfolio, one cannot discount that it may choose to bring an appropriate cloud solution to the growing UK hosted market,” she said.
Toshiba are disappointed that the loyalty of UK partners to the Toshiba brand has not been repaid with the expected level of support: “This is very disappointing,” Colin Hepher, MD of Toshiba distributor SOS said. “There is bound to be a backlash from large companies, county councils and schools to name but a few that have been loyal to the brand.”
Although this move by Toshiba means it will no longer supply telephony products, the company have stated they will continue to offer technical support.
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