DRAFT

NEC Dealer Council meeting with NEC

October 3 & 4, 2005

Chicago, IL

 

Initial discussion about a blog posted about NEC Unified.  Charlie Langdon indicated that leadership was reasonably sure it was posted by a former employee that had already been terminated.  End of half sales report shows improvement.

 

Gail Fisher led off the presentations from NEC.  NEC has been #1 in key system station sales for the past 4 quarters.  60% of the sales are IPK.  The Cash Rewards program is continuing.   Key Systems is working on new packages, which they hope to have available by the end of October.

 

Gail said the Web Pro software is in beta and should be released soon.  Software is html and should work from any Windows platform.  Software will work for multi-site locations using VOIP.

 

The conference phone announced at Advantage should be released about October 15th.  One is wired (#750073) and a wireless (#750074) conference phone. 

 

The next release will be in Feb/March time frame with a new turbo charged CPU (4 times faster)  This will allow more phones, which has been a major concern for dealers.  The recent NECSI survey found several dealers requesting hotel-motel features, so that is on the agenda for future software releases.

 

Buyerzone through NEC has been terminated due to rising costs.  Dealers can continue directly with Buyerzone with 50% coop applied directly by emailing the invoice to Pat Smith. Dealers can select the markets they want leads from instead of their entire contract territory.

 

The American Express gift certificates are changing to Visa Card that are loaded twice a month as sales accumulate.

 

Univerge MPS is scheduled for released October 14th.  Council members suggested that beta information be released to provide some comfort for dealers.  Discussion on cost of demo system and in-house systems. Council felt the 50% normal discount wasn’t enough to get dealers started.  Starter package with ISDN-PRI has a MSRP of $11,250.  Demo with COT has a MSRP with $8500.  Normal discount is 40% on Univerge.

 

Bruce Grant discussed the 2000 IPS and DML.  R10 release.  DML will expand with two more slots.  In November, the IM16LX (Linux)  will be released with 3000 R11.  Also being added are station to station SMDR data and Automatic Day Light Savings.  Also,  scheduled for Feb. 2006 is Live Record over CCIS.

 

Extra Edge Promotions will be continued.

 

MSRP implementation will be postponed until April, 2006.

 

Services.  Commission for selling NEC services has increased.  Higher commission for multi-year contracts.  New service will be available soon called “Message Protection Suite”.  This service provides cleaning for all incoming email.  Email is forwarded to this service first, then forwarded to your email server.  Cost about $1 per mailbox per month.

 

Report on Vertical Marketing:  Sales in Health Care up 20%, sales in higher ed up 50%.  Many leads have been gathered and distribution to dealers has been delayed due to data processing challenge?  Twenty-nine dealers that signed up will be notified shortly if they are accepted.  Seven sales so far, 65 dealer staff have attended classes.  About 2000 leads in the pipeline from trade shows.  Leads delayed due to data base issues?

 

Advantage in 2006 will be in Dallas from May 3-6.

 

The AD-8 will be replaced by the IM16LX (Linux).  New web based interface.  New drivers for AD 64 Dialogic D-82 boards can be downloaded from www.activevoice.com.

 

Discussion on increased advantage of NEC PBX is that you can always add an IP adapter to the E or I series phones

 

Discussion on sales of Cisco Call Manager.  Report any Cisco rep running down NEC because NEC Unified sells/installs Cisco right away to NEC top management.

 

Council offered to survey dealers and help design sessions for dealers at next Advantage.  Possible marketing committee of NECSI board members was discussed.

 

Discussion current restriction in AAP where dealers must sell $37.5K worth of services in the 2nd half to qualify for rebates due to increased product sales.  Council pointed out that for most dealers, the AAP would not pertain in the 2nd half.  Charlie Langdon responded that NEC wants to encourage dealers to develop and sell their own services and that requirement would be dropped in the next few days (and it was).

 

Gail announced that NEC was providing extended coverage for hook switch problems through 2006?

 

We agreed to have our next meeting in Dallas on January 12 & 13, 2006.