'Local SMBs are still reluctant and conservative when it comes to acquiring new IT equipment that could perform multiple tasks or functions,' said Oscar Visaya, head of technical operations for Cisco Philippines.
Visaya added that the main factor contributing to the situation is the lack of knowledge among SMBs as well as their fear that it might equate to additional operational costs.
In Cisco's experience, technologies such as IP (Internet Protocol)-based equipment with multiple functions are relatively new and usually unheard of by the local SMB market. 'Many SMBs, even those that already have existing networks, are not yet interested in purchasing converged equipment mainly because of the cost it entails,' said Visaya.
However, he added that they foresee local SMBs eventually adopting converged equipment as they target bigger markets here and abroad, as well as increasing competition that will lower costs.
'Give them time and they will eventually find better reasons and value to purchase converged technology products that will meet both their voice and data requirements,' Visaya said.
As part of their ongoing program to educate the local SMB market, Cisco Philippines has partnered with several technology partners in promoting trends in IP-based communications. Sponsored seminars intensively discuss new technologies running on local area networks (LAN) and wide area networks (WAN).
Cisco has also recently introduced its Business Communication Solutions as its first complete communication systems targeted specifically at the SMB market. The package is currently priced between US$10,000 to $20,000 and includes voice, routing, switching, security, and wireless functions.
Visaya said that SMB clients could derive a 44 percent savings on its total infrastructure costs over a five-year deployment period.
Presently, about one-third of the total business of Cisco Philippines comes from SMB clients.
Last year, Cisco rolled out $12 billion in investments to strengthen its position in the global SMB sector, which is estimated to have a value of $440 billion in potential revenues.
Cisco Philippines, meanwhile, is also planning to roll out financing programs to allow clients to save on capital costs. Overseas, one of Cisco's financing programs allows partner telecom companies to host and lease their network infrastructure to smaller clients.