microsoft-response-point1After weeks of speculation, Microsoft has essentially killed Response Point — the company’s former VoIP system for small businesses. According to a Microsoft Town Hall meeting today with VARs, the product is in maintenance mode with no future releases planned. Sorry for the following comparison, but Response Point has become Microsoft’s modern day OS/2. Here’s why.

Alas, Response Point is a product with an eager, niche following that didn’t officially die. Instead, Response Point will fade away (quickly, The VAR Guy predicts) through maintenance mode support. IBM used the same strategy to walk away from OS/2 a decade ago.

Of course, comparing Response Point to OS/2 is a bit of a stretch by The VAR Guy — since OS/2 gobbled up millions in IBM R&D and generated millions in financial losses for Big Blue. In stark contrast, Response Point was a very small, targeted R&D effort by Microsoft. But our resident blogger does like to pump up the drama with crazy comparisons from time to time.

You’ll find the back story on Response Point’s demise here, plus a recap of today’s Town Hall call here.

Microsoft Partner Opportunities Elsewhere

Response Point VARs invested time and money in the VoIP system so they have a legitimate gripe. But in the bigger picture, Microsoft continues to invest heavily in Small Business Server and a range of cloud services. There’s going to be some pain, friction and confusion as VARs shift to some of those cloud services.

Microsoft has beaten the odds (and the competition) before. The VAR Guy bet heavily on Microsoft when Windows NT debuted in 1993 and was essentially dismissed by the Unix and NetWare advocates. And our resident blogger is guessing Microsoft’s Business Productivity Online Suite (BPOS) SaaS applications will be a big hit with partners and their customers over the long haul. Short term, no doubt, the transition will trigger some channel pain.

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14 Comments on “Microsoft Kills Response Point Development”

  1. Chris Chase Says:

    I have not heard “OS/2″ in so long… We used to be an OS/2 Partner and ran a regional user group. Was very sad when MS won.

  2. Harry Brelsford Says:

    With All Due Respect - I disagree with the VAR Guy on this one.

    What I heard today was “dog bites man” which translates into “no news.” Microsoft has really kept the lid on this one. I’m inside the “beltway” out here in Seattle and I can’t get the inside dirt. Note to self - send compliments to WagEd on this one.

    Frustrated? Yes - I am surprised MSFT isn’t heavily investing in VoIP right NOW for a long-term payoff. Arrggggg…..

    I still use RP and it is a workhorse. I hope its not the end.

    harrybbbbb

  3. The VAR Guy Says:

    Harry: In this case, The VAR Guy thinks no news is bad news. However, our resident blogger always respects your opinions. And our comment sections will always welcome constructive criticism and differing views.

  4. Daniel Says:

    Interesting.. I’ve been keeping an eye on this.

    3CX is a Windows VOIP solution targeted at SMB. We have been selling quite a bit of it throughout Australia. Probably a good replacement for VARs looking too fill the gap.

  5. matt landis Says:

    I wonder too if “no news isn’t bad news”. We are a Dynamics partner and were big supporters of Microsoft Small Business Financials which was discontinued. The path they took with SBF sounds creepy similar to RP. But one thing I will say: We worked with SBF product managers and have emerged stronger than before.

    With phone systems we’ve been using a Windows Server based IP PBX which fits nicely with our networking side of things, but I can really feel for VARs who have poured themselves into RP.

    My thots on town hall:
    http://dynamicssmallbusiness.blogspot.com/2009/06/microsoft-response-point-future-rp-in.html

  6. The VAR Guy Says:

    @Daniel: Do you represent 3CX?
    @Matt Landis: Thanks for keeping readers informed with your perspectives. Your ability to tell VARs that you emerged stronger after Small Business Financials went away is a welcome message.

  7. Chris Chase Says:

    We have been selling TeleVantage for 6 years (Company is “Vertical”, they used to be “Artisoft” makers of Lantastic).

    TeleVantage has always been a tough sell for SMB’s because it’s SO pricey. We were just beginning to look into RP as a less expensive alternative for our smaller clients. Now I don’t know if RP is an even an option.

    I have also been looking at Asterik and 3CX. I’d love to hear about experiences with these and any others.

  8. The VAR Guy Says:

    Chris: The VAR Guy will be speaking about Asterisk reseller sales strategies during Astricon (Oct. 13-15, Arizona). In the meantime, check out the partner programs organized by Digium and Fonality.

    The VAR Guy isn’t endorsing Asterisk or those vendors. However, our resident blogger can confirm that they enjoy growing momentum in the IT channel.

    Also of note: SMB Nation (Oct. 2-4, Las Vegas) will surely have lots of Small Business VoIP content for VARs.

    Readers, do you agree? Other ideas?

  9. Chris Chase Says:

    Digium, who writes asterisk is we’re pretty deep in discussions with. Next step is to just become a reseller. Just paused for a moment to make sure they are the best solution for our SMB clients. I really hate picking a solution twice.

  10. Chris Chase Says:

    is who*

  11. The VAR Guy Says:

    Chris: Keep The VAR Guy posted as you weigh your considerations. Our resident blogger would love to know when you reach a final decision…

    Best
    -TVG

  12. Bruce Says:

    Hi guys, my two cents. I’m shocked to see that MS put RP on hold. It doesn’t make sense to me - they could have owned the SMB space with it. It was one of the finalists for the system I’m implementing at my company. For various reasons, we decided to go with an Asterisk-based system, and I then chose PBX in a Flash after having demoed the current candidates. I would encourage you to check it out - strong, enthusiastic community, lots of customization, small learning curve, modest system requirements. It’s great.

  13. Brian Rosenfelt Says:

    We took a serious look at RP last year, but thought it really wasn’t mature enough for “prime time”. I know they made a massive amount of improvement, but as a long-time Fonality (PBXTRA/TRIXBOX) partner, MSFT had an big hill to climb. We’ve been really happy with the Fonality product set, and have been even more impressed with their partner program and commitment to the channel (not to mention the fact that their product JUST WORKS!!).

  14. The VAR Guy Says:

    Brian: The VAR Guy has been tracking Fonality as well. And clearly, the market has voted. Fonality is growing. Response Point is essentially dead…

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