Market Research Report

2012 - 2013 Cloud-Based Contact Center Infrastructure Market Report

cover Published by DMG Consulting LLC
Published Product code 250312
Content info 433 Pages
Price

Introduction

Abstract

DMG Consulting's fifth edition of its Cloud-Based Contact Center Infrastructure Market Report provides an in-depth analysis of all aspects of this booming and highly competitive IT sector. The 433-page report gives contact center and IT managers the comprehensive vendor, product, functional, technical and pricing information they require to determine if a cloud-based solution is right for their organization and, if so, which one. This Report also provides insights into adoption, market trends and challenges, analyzes market activity, reviews customer satisfaction with vendors, and offers implementation best practices to help users realize the greatest continuing return on their technology investments.

We've been talking about the Great Recession for four years now, mostly focused on doom and gloom. One positive thing that came out of the Great Recession was that the cloud finally became a reality for contact center solutions. Economic instability helped make cloud-based contact center infrastructure solutions extremely appealing. In the last two years, the Great Recession kicked cloud-based implementations into high gear, with growth reaching unprecedented numbers across industries, geographies, and companies of all sizes.

Faced with the uncertainties of the recession, companies that needed contact center infrastructure but did not want to make large capital expenditures tiptoed their way into the cloud as a short-term solution. They soon realized that the cloud-based business model had more benefits than challenges. The initial skepticism that held companies back from trying something other than a premise-based solution has morphed into an entire generation of contact center and IT leaders embracing this acquisition model and regarding it as a key enabler for their future.

The staggering statistics best illustrate the story. In 2008, the adoption rate of cloud-based contact center infrastructure solutions was only 2.2%. In just three years, that rate has nearly tripled to 5.9%. After a decade of creeping forward seat by seat, this market suddenly grew by 26.4%, from 268,794 seats in 2008 to 339,850 seats at the end of 2009. It picked up more momentum in 2010 when it grew by 42.4%, and exploded in 2011, growing by 80.2%.

This rapid adoption has and will continue to drive and speed the pace of innovation. As more established and larger contact centers look to move their infrastructure to the cloud, they are demanding the functionality, reliability, and ease of use they've become accustomed to with their premise-based solutions. Cloud-based vendors are being forced to achieve parity in many areas. Unlike their premise-based competitors, these vendors use agile development cycles that enable them to bring enhancements and new capabilities to market quickly.

As was the case in 2011, much of the innovation in the contact center infrastructure market now comes from cloud-based vendors. They continue to invest in research and development (R&D), and many are introducing functionality that truly sets them apart. Some vendors are adding workflow engines to attract back-office users. Others are focusing on pre-arrival routing options to enable their customers to realize the true benefits of cloud-based technology. As the solutions mature, cloud-based vendors are offering more out-of-the-box third-party integrations with other contact center applications such as customer relationship management (CRM), quality assurance (QA), and workforce management (WFM). DMG expects to see additional innovation in the areas of routing and integration capabilities over the next couple of years.

While cloud-based contact center infrastructure solutions are not yet the answer for every department, contact center, or enterprise, they have altered the competitive landscape for the better. Today, end users have more vendor and solution choices than ever before, giving them unprecedented leverage to negotiate a favorable deal. DMG advises buyers to be aware that there are significant differences among available solutions. When seeking a cloud-based provider, end users must establish clear, specific business requirements, follow best practices for selecting applications, and invest the time and resources necessary to craft contracts that include vendor management programs and service level agreements to protect them for the short and long terms.

To aid users in their research and evaluation process, DMG conducted an independent survey to measure end-user satisfaction with cloud-based contact center vendors and their products, service, support, professional services, training and innovation. This study evaluates the performance of the six vendors analyzed in detail in the 2012 Cloud-Based Contact Center Infrastructure Market Report. A majority (51.6%) of satisfaction ratings across all vendors for the ten major categories surveyed fell into the satisfied range (3.0 to 3.7 out of 5.0). 38.3% of the average ratings fell into the highly satisfied range (4.0 to 4.7), and 10% of the ratings fell into the somewhat satisfied range (2.0 to 2.7). What this means is that end users are generally very satisfied with their cloud-based solutions, even though there is still room for improvement.

The last few years have shown that while cloud-based contact center infrastructure solutions sell well when budgets are tight, there is uncertainty about a company's performance, and capital spending is limited. However, DMG expects these solutions to continue to gain ground once the economy completely recovers, now that they are recognized as technically and functionally viable alternatives to premise-based solutions. DMG projects that the cloud-based contact center infrastructure market will grow by 45%, 40%, 40% and 35%, each year, respectively between 2012 and 2015. DMG estimates that a minimum of 18.1% of all contact center seats will be in the cloud by the end of 2015. And it's likely that these numbers are conservative, as more companies are buying into the benefits of having vendors maintain the hardware and software, freeing them to concentrate on managing their business. This is the fastest-growing sector of the contact center market, and cloud-based solutions will account for an increasing percentage of new purchases for the foreseeable future.

The 2012 Cloud-Based Contact Center Infrastructure Market Report is the most comprehensive, fact-based and timely analysis of this explosive technology sector. It covers 13 vendors in total, six at an in-depth level, including 8x8 (Contactual), Echopass, Five9, inContact, Interactive Intelligence and NewVoiceMedia. Seven others are covered at a slightly higher level, including Cisco, Connect First, Enghouse, Magnetic North, NexxPhase, VoltDelta and West. The inclusion of contenders along with the market-leading vendors gives readers a deep appreciation of the range of cloud-based contact center infrastructure offerings.

Key Reasons to Buy This Report

  • Overview of cloud-based/hosted contact center infrastructure technology and applications and the changing competitive landscape
  • Review of the state of the market and vendors, market share analysis, adoption rate, and projections through 2015
  • Analysis of the market trends that are attracting interest and driving innovation, and the challenges that are presenting opportunities for the hosted/cloud-based contact center infrastructure vendors
  • Insights into the new and emerging functionality and innovation that has recently been introduced into the market, or is planned for the next 12 to 18 months
  • A balanced, impartial discussion of the pros and cons of cloud-based contact center infrastructure solutions, including a checklist of considerations to help determine if these solutions are right for your organization
  • Vendor selection guide, including a comprehensive roadmap to help end users choose and acquire the right solution from the right vendor at the right price
  • Straightforward advice on contracts, vendor management best practices, and service level agreements
  • Detailed pricing analysis by vendor and typical price ranges for the market, as well as return on investment (ROI) data
  • Comprehensive vendor satisfaction analysis addressing 14 aspects of each vendor's products, implementations, service, training, professional services, innovation and pricing
  • An examination of the most common cloud-based contact center infrastructure topologies, including schematics that display how each model addresses data center redundancy, carriers and applications and services
  • In-depth side-by-side comparison of the technical and functional components of available solutions
  • A detailed analysis of the best practices required for a successful cloud-based contact center infrastructure implementation
  • Detailed company reports for 13 leading and contending providers, including company, financial, strategy and product overviews, as well as a preview of their future product direction
  • Cloud-Based Contact Center Infrastructure Vendor Directory

Report Highlights

  • The Great Recession paved the way for the cloud to take center stage: Companies that needed contact center infrastructure but did not want to make large capital expenditures hesitantly tried out cloud-based solutions. They soon realized that the benefits far outweighed the risks. Now, companies of all sizes, across industries and geographies, are embracing the cloud model and see it as key to executing on their vision for the future.
  • Growth has been staggering for the last two years, despite the economic slowdown: In 2008, the adoption rate of cloud-based contact center infrastructure solutions was only 2.2%. That rate nearly tripled to 5.9% in just three years. The market grew by 224.3%, from 268,794 seats in 2008 to 871,717 seats, as of the end of June 2012.
  • Demand is driving innovation and functional parity with premise-based solutions: As more established companies look to move their contact centers to the cloud, vendors are being forced to improve their solutions to achieve parity with their premise-based counterparts. Their flexibility and agile development cycles are making this possible, and then some. They are coming up to speed quickly and also introducing new functionality like workflow engines, enhanced routing solutions, and more out-of-the-box third-party integrations with other contact center and enterprise applications.
  • End users are in control, but should undertake a thorough selection process: With a vast array of vendor and solution choices, end users have unprecedented choice and leverage to negotiate a great deal. DMG advises buyers to establish clear, specific business requirements, follow best practices for selecting applications, and craft contracts that protect them for the short and long terms.
  • This market will continue to grow, in good and bad economies: Cloud-based solutions have already proven their ability to sell when the economy is uncertain. DMG also expects these solutions to sell well once the economy completely recovers, particularly now that they are recognized as viable alternatives to premise-based solutions. DMG projects that the cloud-based contact center infrastructure market will grow by 45%, 40%, 40% and 35%, each year, respectively between 2012 and 2015.

Sample Figure:

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Table of Contents

Table of Contents

1. Executive Summary

2. Introduction

3. DMG Consulting Research Methodology

  • 3.1 Report Participation Criteria

4. Service Delivery Model and Definitions

  • 4.1 DMG Service Delivery Definitions
  • 4.2 Vendor Service Delivery Options

5. Hosted Contact Center Technology and Applications

  • 5.1 The Changing Technology Landscape
  • 5.2 Are Cloud-Based Solutions Reaching Functional Parity with their Premise-Based Competitors?
  • 5.3 Integration with Third-Party Applications

6. Cloud-Based Contact Center Infrastructure Trends and Challenges

7. Cloud-Based Contact Center Infrastructure Product Innovation

  • 7.1 New Product Features
  • 7.2 Upcoming Product Innovation

8. Cloud-Based Contact Center Infrastructure Competitive Landscape

  • 8.1 Categories of Cloud-Based Contact Center Infrastructure Competitors
  • 8.2 Impact of Hosting on Premise-Based Vendors
  • 8.3 Cloud-Based Contact Center Infrastructure Executive Guide

9. Pros and Cons of Cloud-Based Contact Center Infrastructure Solutions

10. How to Determine if Hosting is Right for Your Organization

11. Vendor Selection Guide: Roadmap for Selecting a Contact Center Infrastructure Solution

  • 11.1 The Request for Proposal Process
  • 11.2 Building a Contact Center Infrastructure Decision Matrix
  • 11.3 The Scoring Process
  • 11.4 The Commercialization Process

12. Cloud-Based Contact Center Infrastructure Contracts, Vendor Management and Service Level Agreements

  • 12.1 Vendor Management
  • 12.2 Establishing Service Level Agreements

13. Cloud-Based Contact Center Vendors and Products

  • 13.1 High-Level Company and Financial Information
  • 13.2 Vendor Strategy and Positioning
  • 13.3 Vendor Products and Offerings
  • 13.4 Packaged Applications
  • 13.5 Small/Mid-Sized Offerings

14. High-Level Functional and Technical Analysis

  • 14.1 High-Level Functional Components
  • 14.2 High-Level Functional Analysis
  • 14.3 High-Level Technical Analysis

15. Benefits and ROI of Cloud-Based Contact Center Infrastructure Solutions

  • 15.1 Benefits
  • 15.2 Return on Investment

16. Cloud-Based Contact Center Infrastructure Market Share Analysis

17. Cloud-Based Contact Center Infrastructure Market Projections

18. Adoption of Cloud-Based Contact Center Infrastructure Solutions

19. Pricing

  • 19.1 Pricing Structure
  • 19.2 Price Ranges
  • 19.3 Vendor Pricing: 50- and 250-Seat Configurations
  • 19.4 Pricing: Contending Solutions

20. Vendor Satisfaction Analysis

  • 20.1 Summary of Survey Findings and Analysis
  • 20.2 Detailed Survey Findings and Analysis
    • 20.2.1 Product Satisfaction, by Category
    • 20.2.2 Vendor Satisfaction, by Category
  • 20.3 Customer Background and Insights
    • 20.3.1 Customer Background
    • 20.3.2 Customer Insights

21. Cloud-Based Topologies

  • 21.1 Data Center-Centric Contact Center Infrastructure SIP Topology
  • 21.2 Data Center-Centric SIP/TDM Contact Center Infrastructure Topology
  • 21.3 Hosted Contact Center Infrastructure Distributed Applications Topology

22. Cloud-Based Contact Center Infrastructure Technology Analysis

  • 22.1 Detailed Technical Analysis
  • 22.2 Unified Communications
  • 22.3 Multi-tenancy
  • 22.4 Internet Protocol/Session Initiation Protocol (IP/SIP)
  • 22.5 Security
  • 22.6 Data Center, Disaster Recovery and Contingency
  • 22.7 Integration Capabilities

23. Detailed Functional Analysis

  • 23.1 Automatic Call Distributors
  • 23.2 IVR/Voice Portal
  • 23.3 Computer Telephony Integration
  • 23.4 Dialer
  • 23.5 Customer Relationship Management
  • 23.6 Call Recording
  • 23.7 Quality Assurance
  • 23.8 Performance Management
  • 23.9 Speech Analytics
  • 23.10 Surveying/Voice of the Customer
  • 23.11 Social Media
  • 23.12 Workforce Management
  • 23.13 Desktop Analytics
  • 23.14 Text Analytics

24. Vendor Implementation Analysis

  • 24.1 Vendor Implementation Best Practices
  • 24.2 Professional Services and Training

25. HCCI Company Reports

  • 25.1 8x8 (Contactual)
  • 25.2 Cisco Systems
  • 25.3 Connect First
  • 25.4 Echopass
  • 25.5 Enghouse Interactive
  • 25.6 Five9
  • 25.7 inContact
  • 25.8 Interactive Intelligence
  • 25.9 Magnetic North
  • 25.10 NewVoiceMedia
  • 25.11 NexxPhase
  • 25.12 VoltDelta
  • 25.13 West Interactive Corporation

Cloud-Based Contact Center Infrastructure Vendor Directory

Table of Figures

  • Figure 1: DMG's Service Delivery Model Definitions
  • Figure 2: Service Delivery Options
  • Figure 3: Contact Center Infrastructure Technologies and Applications
  • Figure 4: Typical Hosted Contact Center Infrastructure Solution
  • Figure 5: 2012 Cloud-Based Contact Center Infrastructure Trends
  • Figure 6: 2012 Cloud-Based Contact Center Infrastructure Challenges
  • Figure 7: New Product Features Introduced in Last 12 Months
  • Figure 8: Future Application Enhancements
  • Figure 9: Contact Center Infrastructure Selection Process Best Practices
  • Figure 10: Contact Center Infrastructure Selection Categories
  • Figure 11: Contact Center Selection Decision Model
  • Figure 12: Contact Center Infrastructure Decision Framework Criteria
  • Figure 13: Commercialization and Negotiating Tips
  • Figure 14: KPIs for Cloud-Based Contact Center Solutions
  • Figure 15: Service Level Agreements (SLAs)
  • Figure 16: Company Information
  • Figure 17: Company Information
  • Figure 18: Company Strategy
  • Figure 19: Products
  • Figure 20: Packaged Solutions
  • Figure 21: Small/Mid-Sized (SMB) Offering
  • Figure 22: Cloud-Based Contact Center Infrastructure Solution Overview
  • Figure 23: High-Level Functional Summary
  • Figure 24: High-Level Technical Summary
  • Figure 25: Hosted Contact Center Infrastructure Payback Analysis
  • Figure 26: Cloud-Based Contact Center Market Activity, as of June 30, 2012
  • Figure 27: 2011 Cloud-Based Contact Center Market Share, by Number of Seats
  • Figure 28: 2011 Cloud-Based Contact Center Market Share, by Number of Customers
  • Figure 29: Seats by Vendor, 2010 vs. 2011 Comparison
  • Figure 30: Customers by Vendor, 2010 vs. 2011 Comparison
  • Figure 31: Seats by Vendor, 2010 vs. 2011 Comparison
  • Figure 32: Cloud-Based Contact Center Infrastructure Seat Trend Analysis, 2008 - 2011
  • Figure 33: Cloud-Based Contact Center Infrastructure Seat Trend Analysis Graph, 2008 - 2011
  • Figure 34: Cloud-based Contact Center Infrastructure: Actual and Market Projections, 2008 - 2015
  • Figure 35: Cloud-based Contact Center Infrastructure: Actual and Projected Adoption Rates, 2008 - 2015
  • Figure 36: Cloud-Based Contact Center Infrastructure Pricing Structure
  • Figure 37: Cloud-Based Contact Center Infrastructure Price Ranges, 2010 - 2012 Comparison
  • Figure 38: 2012 Price Range by Cost Category
  • Figure 39: Pricing (50-Seat System)
  • Figure 40: Pricing (250-Seat System)
  • Figure 41: Monthly Pricing (in USD), 50-Seat System
  • Figure 42: Monthly Pricing (in USD), 250-Seat System
  • Figure 43: Customer Survey Rating Categories
  • Figure 44: Average Satisfaction Ratings, by Category
  • Figure 45: Product Satisfaction Ratings, by Category
  • Figure 46: Product Ease of Configuration/Use/Maintenance Satisfaction Ratings, by Customer
  • Figure 47: Product Ease of Integration with Third-Party Applications Satisfaction Ratings, by Customer
  • Figure 48: Product Routing and Queuing Satisfaction Ratings, by Customer
  • Figure 49: Agent Interface Satisfaction Ratings, by Customer
  • Figure 50: Supervisor Interface Satisfaction Ratings, by Customer
  • Figure 51: Overall Product Features and Functionality Satisfaction Ratings, by Customer
  • Figure 52: ACD Feature Set Satisfaction Ratings, by Customer
  • Figure 53: IVR Feature Set Satisfaction Ratings, by Customer
  • Figure 54: Platform Reliability and Scalability Satisfaction Ratings, by Customer
  • Figure 55: System Flexibility Satisfaction Ratings, by Customer
  • Figure 56: System Security Satisfaction Ratings, by Customer
  • Figure 57: Dashboard Satisfaction Ratings, by Customer
  • Figure 58: Real-Time Reporting Satisfaction Ratings, by Customer
  • Figure 59: Historical Reporting Satisfaction Ratings, by Customer
  • Figure 60: Implementation Satisfaction Ratings, by Customer
  • Figure 61: Training Satisfaction Ratings, by Customer
  • Figure 62: Service and Support Satisfaction Ratings, by Customer
  • Figure 63: System Upgrades Satisfaction Ratings, by Customer
  • Figure 64: Professional Services Satisfaction Ratings, by Customer
  • Figure 65: Product Innovation Satisfaction Ratings, by Customer
  • Figure 66: Responsiveness to Product Enhancement Requests Satisfaction Ratings, by Customer
  • Figure 67: Product Pricing Satisfaction Ratings, by Customer
  • Figure 68: Overall Satisfaction Ratings, by Customer
  • Figure 69: What contact center applications are you using your hosted contact center infrastructure vendor for?
  • Figure 70: What channels do you use your hosted contact center infrastructure to support?
  • Figure 71: What were the 3-5 primary drivers of your decision to implement a hosted contact center infrastructure solution?
  • Figure 72: What were the 3-5 biggest concerns you had to overcome in choosing a hosted contact center infrastructure solution?
  • Figure 73: What are the top 3-5 benefits you have gained from using a hosted contact center infrastructure solution?
  • Figure 74: What does your hosted contact center infrastructure vendor do well?
  • Figure 75: Verbatims: What would you like your hosted contact center infrastructure vendor to do better?
  • Figure 76: Verbatims: What type of product enhancements would you like to see?
  • Figure 77: Verbatims: Please feel free to provide any additional comments about your experience with the vendor and/or solution.
  • Figure 78: Data Center-Centric Contact Center Infrastructure SIP Topology
  • Figure 79: Data Center-Centric Contact Center Infrastructure SIP/TDM Topology
  • Figure 80: Cloud-Based Contact Center Infrastructure Distributed Applications Topology
  • Figure 81: Detailed Technical Analysis
  • Figure 82: Unified Communications Framework
  • Figure 83: Unified Communications
  • Figure 84: Multi-Tenancy
  • Figure 85: IP/SIP
  • Figure 86: Security Best Practices for Cloud-Based Contact Center Infrastructure Vendors
  • Figure 87: Security
  • Figure 88: Data Center Back-up, Disaster Recovery and Contingency
  • Figure 89: Integration Capabilities
  • Figure 90: Automatic Call Distributor
  • Figure 91: Interactive Voice Response/Voice Portal
  • Figure 92: Computer Telephony Integration
  • Figure 93: Dialer
  • Figure 94: Customer Relationship Management
  • Figure 95: Call Recording
  • Figure 96: The Analytics-Enabled QA Process
  • Figure 97: Quality Assurance/Quality Management
  • Figure 98: The Contact Center Performance Management Process
  • Figure 99: Performance Management
  • Figure 100: The Speech Analytics Process
  • Figure 101: Speech Analytics
  • Figure 102: Surveying/Voice of the Customer (VOC)
  • Figure 103: Types of Information Gleaned from Social Media Interactions
  • Figure 104: Social Media
  • Figure 105: Contact Center WFM Building Blocks
  • Figure 106: Workforce Management (WFM)
  • Figure 107: Desktop Analytics Defined
  • Figure 108: Desktop Analytics (DA)
  • Figure 109: Text Analytics (TA)
  • Figure 110: Implementation Analysis
  • Figure 111: Vendor Implementation Best Practices
  • Figure 112: Professional Services and Training

2012 - 2013 Cloud-Based Contact Center Infrastructure Market Report published by DMG Consulting LLC in October 15, 2012. This report consists of 433 Pages and the price starts from US $ 4250.

Press Release

New Cloud-Based Contact Center Infrastructure Market Report Explores Vendors, Solutions, Pricing, ROI, Planned Innovation and More

November 7th, 2012

Global Information Inc. would like to present a new market research report, "2012 - 2013 Cloud-Based Contact Center Infrastructure Market Report" by DMG Consulting LLC.

DMGs fifth annual report on this sector explores vendor, product, functional, technical and pricing information to help contact center and IT managers determine if a cloud-based solution is appropriate for their organization and which solution is the best fit. The report also provides insights into market trends and challenges, analyzes market activity and adoption, reviews customer satisfaction with vendors, and offers implementation best practices to help users realize the greatest continuing return on their technology investments.

The Great Recession opened the door for the cloud to finally become a reality for contact center solutions. Companies that needed contact center infrastructure but did not want to make large capital expenditures gave the cloud a try as a short-term solution, and soon realized there were more benefits than challenges. DMG expects to see the rapid adoption continue, even as the economy strengthens, now that organizations appreciate the benefits of these solutions.

Over the last three years, adoption has nearly tripled from 2.2% to 5.9%, with the number of seats growing from 268,794 in 2008 to 871,717, as of the end of June 2012. Rapid adoption will continue to drive and speed the pace of innovation as larger companies consider moving their contact centers to the cloud. Cloud-based contact center infrastructure vendors are agile, innovative, and delivering new functionality to market quickly.

"The cloud-based contact center infrastructure market is exploding -- more and larger companies are moving their contact centers to the cloud to take advantage of the many tangible benefits like lower start-up and implementation costs, increased flexibility, and the freedom to focus on their core business rather than on managing in-house solutions," said Donna Fluss, President of DMG Consulting.

DMG projects that the cloud-based contact center infrastructure market will continue to build momentum, growing by 45%, 40%, 40% and 35%, each year, respectively, between 2012 and 2015. DMG estimates that a minimum of 18.1% of all contact center seats will be in the cloud by the end of 2015.

The 433-page 2012 Cloud-Based Contact Center Infrastructure Market Report covers all aspects of this booming and highly competitive IT sector. It analyzes 13 vendors in total, six at an in-depth level, including 8x8 (Contactual), Echopass, Five9, inContact, Interactive Intelligence and NewVoiceMedia. Seven others are reviewed at a slightly higher level, including Cisco, Connect First, Enghouse, Magnetic North, NexxPhase, VoltDelta and West.

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