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Your contact center should be cloud-based. Just ask Jerry…
Jerry, a customer service manager at a large healthcare firm, was evaluating his contact center options: hardware-versus cloud-based. He thought the hardware solution would be less expensive than the cloud-based alternative and decided to go that route.
Fast forward a few years, and Jerry ended up spending over four times the purchase price of the hardware solution. Additional gear for expansions, full-time technical admin, miscellaneous support contracts, unexpected telecom fees, and other costs kept adding up.
Don’t be Jerry.
Let’s walk through the total cost of ownership between hardware and cloud-based contact center solutions and see where Jerry went wrong.
Understanding the Total – and Real – Cost of Ownership
Jerry believed as many do, that an upfront CapEx (capital expense) investment would be ultimately less expensive than the monthly recurring costs associated with cloud-based service. While this may seem logical at first glance, it’s not a true reflection of the difference between the purchase price and the actual total cost of ownership.
Some key questions that can uncover the hidden costs of hardware-based systems are:
- What happens once the equipment is purchased and installed?
- What’s the cost of the required space and power?
- Who will install and maintain the equipment?
- Will new resources be required? What about IT hours and salaries needed for staff to learn this new system?
- What happens if an equipment failure occurs, and replacements or upgrades are required?
- What additional telecom costs could we run into?
Capital investments depreciate over the years – but the associated costs for operating and expanding hardware systems do not. Jerry discovered this first-hand when he realized that he had to pay for additional modules every time he needed to support new customer care vectors. He also did not account for IT maintenance costs, nor for technical personnel required to administer and manage the system. Jerry realized his on-prem system simply wasn’t designed to support a dynamic business environment. These costs were amplified over the implementation process, which was significant given the size of the organization Jerry was supporting.
Jerry was most displeased.
IT maintenance and related personnel salaries represent an estimated 17% of a typical contact center’s operating expenses. Contact Center as a Service (CCaaS) solutions enable organizations to reduce these ongoing operating expenses, not only because of simple all-inclusive licensing models, but also due to the rapid implementation timelines: days, as opposed to months for hardware.
Other Factors to Consider:
Seasonal fluctuations were another challenge for Jerry. Scaling his hardware-based system meant purchasing more equipment and licenses, then implementing the expansions. However, when the company hit slow seasons and needed to reduce staff, Jerry was still paying for all the equipment and licenses he purchased previously to accommodate growth.
Jerry came to detest the changing of the seasons.
Seamless scalability, in both directions, is another hallmark of industry-leading CCaaS solutions. With Intermedia, for example, Jerry would simply have e-mailed or called his Intermedia partner or rep. He would request the additional seats or a reduction in seats and be operational with the changes in a matter of days.
Business Continuity & Survivability
Jerry also needs to consider this: if his equipment fails, his location loses power, or the office is snowed in, he’s at the mercy of his corporate network. Cloud contact centers can leverage the public telephone network and public Internet to get calls to your agents – as opposed to Jerry having to build and maintain all that equipment, voice lines, and staff. Agents can be 100% functional from a remote location, the same as they would be in the office.
Then there are upgrades. Upgrades to a traditional contact center system can require quite a bit of prep work that can put Jerry’s operations on hold, time and time again. Some disruptions may include technicians needing to clear access paths, create space for large tools and equipment, switch off the power, or even make changes to air conditioning and fire protection systems. With cloud-based alternatives, there are none of the above hindrances. With Intermedia, upgrades are literally a phone call or an e-mail away.
Jerry learned critical lessons from his experience with hardware-based contact center solutions. Lessons that can help you avoid his mistakes. So remember: don’t be Jerry. Welcome to the Cloud, as we proudly introduce Intermedia Contact Center.
Intermedia Contact Center is the cloud-based solution designed to scale from the smallest single-channel informal contact center to the most sophisticated omnichannel environment. Intermedia Contact Center gives businesses the power to create efficient interactions, meaningful insights, productive teams and an overall superior customer experience – with our Express, Pro, and Elite packages.
Intermedia Contact Center is also the best option for MSPs because like all Intermedia services, we enable MSPs to resell contact center services under their own brand, grow REAL monthly recurring revenue, own the customer relationship, and drive significant value in their business all the while supporting our partners with our JD Power certified technical support and 99.999% uptime SLA.
Join us on Thursday, October 24 at either 10am PDT / 1pm EDT, or 1 PM PDT / 4 PM EDT. Reza Kamran, our Senior Director of Product Marketing and Joseph Herde, our new Director of Marketing, will cover:
- A detailed walk-through of Intermedia Contact Center, and its capabilities for your customers.
- A breakdown of Contact Center packaging, pricing, promotions, and ordering process.