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Many Companies Limit Cloud Experience and Leave Benefits on the Table

Cloud Contact Center Featured Article

Many Companies Limit Cloud Experience and Leave Benefits on the Table

May 06, 2015
By Tracey E. Schelmetic
TMCnet Contributor

Most contact centers today are aware of the benefits of cloud-based solutions, even if they haven’t fully embraced them, for budget or other reasons. Cloud-based solutions are ideal for distributed or virtual contact centers and home-based agents, they allow facilities with cyclical call volume (spikes at the winter holidays, for example) to scale up with temporary agents, and they save on internal IT costs. Most companies today run at least one cloud-based solution.

Even companies that have embraced cloud-based solutions in the contact center may be underutilizing them, according to a recent study from Bain and Company highlighted in a blog post. For a variety of reasons, companies aren’t putting enough of their work into the cloud to make a difference: in fact, the study found that companies deliver an average of only 18 percent of their workloads from the cloud today, which severely restricts the benefits they can gain. By contrast, companies that are serious about reaping all the benefits of the cloud are migrating at least half of their workloads to the cloud.

There are misconceptions about the cloud, and these erroneous ideas among executives are causing cloud adoptions to falter, according to the Bain bloggers. One particular sticking point is the benefits of the private cloud versus the public cloud.

“Many executives believe they will gain a competitive edge by migrating workloads to a private cloud. And for some workloads—especially those

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with restrictive compliance, security or IP requirements—private clouds are the best option,” they wrote. “Still, our analysis finds that private clouds deliver only about one-third of the benefits of the public cloud. Putting workloads on public or hybrid clouds delivers more value in the form of bigger cost savings, greater flexibility, more scalability and better built-in services.”

Many companies mistakenly believe they need wildly customized solutions, which drives up costs and delays implementation. The truth of the matter is that many companies could gain a great deal of benefit from more off-the-shelf solutions.

“Executives frequently overestimate the value of customized software, choosing it over more cost-effective and industry-standard SaaS (News - Alert) [software-as-a-service] options,” wrote the Bain bloggers. “When they use SaaS, they often implement it in ways that undermine value—for example, allowing business units to make siloed decisions that result in dozens of instances of a SaaS app running across a company rather than standardizing one or just a few.”

Bain recommends that to overcome misconceptions, poor choices in platforms and solutions and low adoption rates, all stakeholders in a contact center’s operations meet with vendors or systems integrators to ensure they’re getting – and paying for – precisely what they need. Done right, cloud delivery has the power to save money and vastly improve the customer experience in a contact center setting. 

Edited by Maurice Nagle

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