Cloud Contact Center vs. On-Premises

When it comes to contact center solutions, there are more options now than ever before.

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You may have heard of two types of contact centers: cloud and on-premises. But do you know the difference and why one might be better than the other? 

When picturing a traditional call center, you might think of agents sitting in cubicles with headsets on chattering away. But modern-day contact centers look very different.  

Contact center agents can now log in and interact with customers from the comfort of their own homes using just a laptop or even their mobile .  

What has changed over the years to make this possible? The answer is the cloud or, more specifically, the introduction of cloud contact centers.     

What are Cloud Contact Centers? 

Cloud contact centers are customer service platforms that run on cloud-based infrastructure. Their software, hardware and data are all stored and hosted by a third-party provider in the cloud.   

To understand cloud contact centers, you must first understand what &#;the cloud&#; is. In the software world, the cloud refers to servers that are accessible remotely (over the internet) as opposed to servers that are available locally.  

Before the internet, servers were only available locally and were referred to as on-premises.   

By leveraging cloud-based technology, cloud contact centers are able to offer better flexibility, cost savings, and improved accessibility for remote workers, among many other benefits.  

According to a study by Metrigy, 29.5% of global companies have moved their contact centers to cloud-based platforms and another 21% have moved to a hosted/managed platform.    

What are On-Premises Contact Centers? 

On-premises contact centers are installed and hosted on a company&#;s own infrastructure. This means the hardware, software and data are all owned by the company and located within their place of business.  

The advantage of on-premises contact centers is that everything is managed and controlled internally. This provides companies with a level of control that cloud-based solutions cannot.  

Typically, companies would need to rely on dedicated IT teams to install, maintain and upgrade their on-premises contact centers. Unfortunately, this type of internal infrastructure and maintenance comes with high costs and limited flexibility.  

While popular many years ago, on-premises contact centers have lost out in popularity to their more modern counterpart, the cloud-based contact center.  

Key Differences Between Cloud and On-Premises

Cloud contact centers have become more popular in recent years, due to advancements in technology and the shift to remote work. Still, it is important to know the differences between cloud and on-premises when choosing the right contact center for your business.  

Here are the major differences between cloud and on-premises contact centers:   

Setup costs and deployment time: Setting up an on-premises contact center can be very expensive and time-consuming. Since all the infrastructure is hosted locally, the upfront costs are much higher compared to cloud contact centers. They also require more time to deploy as everything must be built from scratch. Cloud contact centers can be deployed much faster as there are no capital expenses and they are usually priced based on a pay-as-you-go, monthly subscription.  

Hardware and infrastructure: Cloud contact centers are hosted on remote servers, meaning all their infrastructure is offsite. On-premises contact centers require their infrastructure to be located on the company&#;s premises. Not only does this take up physical space, but it also means companies must purchase their own servers and hardware.       

Maintenance and ongoing costs: For on-premises contact centers, companies must employ dedicated IT staff to maintain their onsite hardware. With cloud contact centers, the hardware is hosted and maintained by a third-party provider, which minimizes the amount of ongoing costs related to upkeep and maintenance. 

Data security and privacy: The greatest advantage of on-premises contact centers is their superior levels of security. When contact center infrastructure is kept onsite, companies can implement their own unique security protocols. Companies who prefer to maintain complete control over their data, software and hardware for security or privacy reasons tend to choose on-premises over cloud-based solutions. 

Agent productivity and analytics: Cloud contact centers rely on newer software that is typically more feature-rich and user-friendly than on-premises software solutions. For example, many cloud contact center solutions offer time-saving features like auto-dialing and call transcription. This helps contact center agents be more efficient and productive in their day-to-day tasks. Cloud-based solutions also tend to offer better analytics and data reporting compared to on-premises solutions.  

Remote access: A major benefit of cloud contact centers is the ability for workers to access them remotely. Since everything is hosted over the internet, cloud contact centers allow agents the freedom of working from home. In contrast, on-premises contact centers often rely on outdated technology, such as desk phones, and typically require workers to be onsite.  

Scalability: Expanding or shrinking the size of your contact center is much easier with a cloud-based solution as opposed to on-premises. For example, bringing on new agents in an on-premises contact center usually involves the purchase of new phones and other hardware modifications. Cloud contact centers are much easier to scale up and down since new users can be onboarded by just downloading an application.   

Reliability and downtime: The biggest weakness of on-premises contact centers is their reliance on localized infrastructure. If anything happens at the place of business, whether it be a power outage or natural disaster, significant downtime can easily occur. On the other hand, cloud contact centers rely on infrastructure that is geographically redundant, meaning that critical components are distributed across different locations. This geo-redundancy is a major benefit of the cloud and provides cloud-based contact centers with superior reliability.     

Third-party integrations: Cloud-based contact centers rely on software that is more modern and agile, allowing for more options when it comes to third-party integrations. Contact centers often connect to popular software solutions for CRM, workforce management (WFM), call transcription, and other key functions. These integrations are already built into most cloud contact center solutions. On-premises contact centers, however, usually require custom coding to integrate with third-party applications.   

Choosing the Right Contact Center

It&#;s important to assess your business requirements and consult with experts when choosing a contact center. That being said, more businesses are turning to cloud-based contact centers over on-premises for a variety of reasons.    

Benefits of a cloud-based contact center

• Can be deployed faster with less upfront costs
• Can easily be scaled up or down
• Requires less IT staff and resources to upkeep
• No physical space or hardware requirements
• Less downtime and service disruptions
• More advanced software with better features and integrations 

Benefits of an on-premises contact center

• Lower ongoing, monthly costs
• Offers complete control over hardware, infrastructure and data security
• Allows for greater in-house customization   

At the end of the day, every business has different needs and the right contact center for you may not be the right solution for someone else. Factors to consider include your overall budget, your customers&#; communication preferences, and your existing CRM and software applications.  

How To Migrate from On-Premises to Cloud 

The first step in migrating your contact center from on-premises to the cloud is defining your business objectives. What do you want to achieve with this migration?  

For some companies, the goal is to reduce the cost of hardware and maintenance. For others, it might be to improve scalability and accessibility or simply to leverage more advanced technology in their contact centers.  

After evaluating your objectives, the next step is to assess your current on-premises system and understand its capabilities and weaknesses. This will help with picking a new contact center solution as well as help avoid any surprise expenses down the road.   

After selecting a new cloud-based solution, you will need to work with your current provider to come up with a migration plan. The migration plan should be comprehensive in scope with the goal of minimizing downtime and service disruptions. It should also include training staff on how to use the new system.  

During and after the migration, thorough testing should be conducted to ensure full compatibility and functionality of the new system.     

What are the Best Cloud Contact Center Solutions? 

With so many cloud-based solutions out there, choosing the right one for your business can feel like a daunting task. Here is a brief overview of some of the best cloud-based contact centers on the market today. 

ComputerTalk ice 

Features: Outbound dialer, real-time analytics and data reporting, AI-powered call transcription, and more.  

Advantages: Integrates with the entire Microsoft suite of products including Azure, Power BI, Dynamics and Teams. Ideal for companies based in Canada and the United States. 

Genesys 

Features: Comprehensive solution aimed at larger enterprises. Has all the usual features such as voicemail, predictive dialing, and intelligent routing.  

Advantages: Backed by one of the largest and longest-standing companies in the contact center world. Advanced AI-powered tools and gamified performance scorecards.  

Want more information on Cloud Call Center? Feel free to contact us.

Five9  

Features: Predictive dialer for outbound calls, text-to-speech recognition, inbound and outbound call management, and more. 

Advantages: Ideal for larger contact centers and enterprises. Five9 has many built-in integrations with applications such as Salesforce, Netsuite, Zendesk and Kustomer.   

NICE CXOne 

Features: Omnichannel IVR offerings, workforce optimization (WFO) tools, and automatic call distribution.  

Advantages: Best solution for large, global contact centers with 24-hour operations. Backed by one of the largest and most established companies in the industry.    

Talkdesk 

Features: Aimed at small to midsize companies. Includes all standard contact center features such as omnichannel routing, auto dialing, and screen recording.   

Advantages: Ideal for companies that need good messaging functionality. Agents can send and receive SMS texts and even set automatic event-triggered notifications.   

Summary 

There are many differences between on-premises and cloud-based contact centers, but most companies see the benefits of migrating to the cloud.  

If you are still using a legacy on-premises solution, it might be time to consider an upgrade. You can work with your current contact center provider or choose a new one based on your business&#; needs.  

To learn more about ComputerTalk&#;s cloud-based contact center solution, click here.   

 

Small- and mid-size businesses must make smart choices about their contact center type and provider. Having the correct contact center setup will ensure great customer service experiences while eliminating excess technology costs that could slow your business growth. 

In this article, we&#;ll walk you through the differences between cloud and hosted contact centers to help you make the right choice for your customers and your business.

What we&#;ll cover: 

What is Contact Center Software?

Before we find out what a hosted and cloud contact center are, it&#;s important to clarify that both models run contact center software.

Contact center software is an omnichannel platform that allows your customers to communicate with your business in multiple ways, including , , web chat, video chatting, text messaging (SMS), and social media. On your end, the contact center software captures all these contact channels in one software platform. 

Depending on the software provider, you also may have API access for other software integration, and dashboards for supervisor control.

Now that we know how hosted and cloud contact centers are similar, let&#;s learn more about each model and understand how they are different.

What is a hosted contact center?

A hosted contact center  is a communications solution hosted at your service provider&#;s physical location instead of on your premises. 

With a hosted contact center, your service provider&#;s physical location becomes the epicenter of your IT infrastructure, meaning that your agents only need their laptops, headsets, and an internet connection to be effective.

It is important to note that it is still possible for companies to carry significant IT costs and responsibilities in a hosted contact center model, such as updating, patching, and tweaking your contact center software and its integrations. 

What is a cloud contact center?

A cloud contact center moves beyond the hosted contact center model to fully leverage the capabilities of cloud computing. There is no need for direct network connections or client-side infrastructure; virtual servers are used, along with Voice over Internet Protocol (VOIP) for calls. 

Plus, there are no dedicated physical servers. Your company will have access to the full range of available server space when needed, allowing you to scale up in high-demand periods without carrying excess costs during less-busy times. And because you aren&#;t tied to physical server locations, you enjoy a level of business continuity resilience that on-premises and hosted contact centers do not offer.

What are the cost and maintenance differences between hosted and cloud contact centers?

While hosted and cloud contact centers will both save you money over the traditional on-premises model, it is essential to understand that they come with different fixed and maintenance costs.

Hosted contact centers relieve you of onsite server hosting, but you are still tied to physical servers. Suppose you have migrated from legacy on-premises software that were not originally designed to operate in hosting environments. In that case, you may expect to have dedicated resources on your IT team ready to deal with ongoing maintenance, patches, and adjustments.

But, hosted contact centers can be less resilient since they do rely on specific servers and direct network connections. 

Cloud contact centers, on the other hand, avoid this problem by provisioning you access to whichever virtual servers are online and functional.

Why On-Premises Contact Centers Are Bad for Business

For a long time, companies were forced to operate physical &#;on-premises&#; call centers to support their customers. This could present real cost challenges to growing businesses because it requires serious investments in real estate, IT infrastructure and staff, PBX systems, etc. 

Not only was this model expensive, but it also was virtually impossible to scale up or down quickly to meet sudden changes in demand, such as increased call volume. And it left company contact centers exposed to business continuity risk in the event of natural disasters or other localized events. This led to the evolution of both hosted and cloud contact centers.

Migrating from a hosted contact center to a cloud contact center

If you are considering upgrading from a hosted contact center to a cloud model, there are a few key things to keep in mind.

First, your cloud center software will no longer be running on dedicated physical servers. Cloud architecture and security present different challenges than traditional network security. Your IT team may need training or outside expert advice to ensure they are equipped to operate in a fundamentally new model.

You will also want to understand your deployment options. While a hosted contact center has already removed you from the traditional on-premises environment, you may still be operating elements of your contact center at your physical office locations. Make sure to evaluate how to best leverage the cloud&#;s flexibility and scalability features to save the most money in the long term.

Finally, make sure you understand that not all hosted or cloud contact center solutions are alike. You may find that your current operating model matches most closely to the Contact Center as a Service (CCaaS) cloud platform, in which customer services and sales professionals are the primary team members leveraging your call center technology. 

But you may want to use your migration as the opportunity to switch to the broader Unified Communications as a Service (UCaaS) model, in which you unite all of your business communication tools across the firm and greatly enhance your collaboration capabilities.

Next Steps to Upgrade Your Business&#; Contact Center Ecosystem

Hosted and cloud contact centers will offer significant cost and scalability advantages over the legacy on-premises model. Evaluate both models carefully to determine the best fit for your business. 

If you&#;re ready to evaluate contact center solutions that will fit your business, reach out today to book a demo or talk to an expert.

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