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ABSTRACT2017-2018 Cloud-Based Contact CenterInfrastructure Market Report1
DMG Consulting’s 10th annual edition of the Cloud-Based Contact CenterInfrastructure Market Report presents the foremost, authoritative analysis ofthis dynamic and rapidly growing IT sector. The Report provides detailed coverageof the competitive landscape, vendors, products, and trends and challenges thatare driving this market; it also addresses market share, projections, adoptionrates, benefits, return on investment, pricing, customer satisfaction andimplementation best practices.Please contact Deborah Navarra at deborah.navarra@dmgconsult.com or 516-628-1098 withany questions. To order your copy of the report, visit www.dmgconsult.com.www.dmgconsult.com2 2017 DMG Consulting LLC
2017 was the breakthrough year for the cloud-based contact centerinfrastructure (CBCCI) market. The momentum, which has been building foryears, has created a large and lucrative ecosystem of partnerships amongmany types of vendors. There are over 150 CBCCI competitors world-wide,and hundreds of system integrators, value-added resellers (VARs), distributors,technology partners, and more, who are dedicated to building this sector. Whilethis is positive for the market in general, it makes it difficult for customers whoneed to differentiate between the offerings. This Report provides prospects withthe information they need to help them select the best CBCCI solution for theiroperating environment.need to comply with a proliferation of regulatory requirements around theworld, including the Health Insurance Portability and Accountability Act (HIPAA)in the US, the world-wide Payment Card Industry Data Security Standard (PCIDSS), the UK’s Data Protection Act, the BDSG Federal Data Protection Act inGermany, the upcoming EU General Data Protection Regulation (GDPR), andmany more. The CBCCI vendors are working to address these concerns and staycurrent with rapidly evolving security and regulatory requirements.DMG estimates that the revenue size of the cloud-based contact centerinfrastructure market was at least 2.8 billion (excluding carrier revenue) asof the end of 2016. This represents only 11.4% of total contact center seats, sothe revenue potential of this market is in the tens of billions. DMG predicts thatthe number of seats will grow by 22% in 2017, 22.5% in 2018, 23% in both2019 and 2020, and then the growth will slow to 21% in 2021. This excitingand adaptable market has vendors who have what it takes to succeed, and thisIT sector is poised for great growth and success in the next 10 years.Cloud-based contact center infrastructure solutions offer many benefits.Primarily, they free a company’s IT department to dedicate their time to morehigh-value activities than implementing and maintaining a solution withwhich they may have little expertise. CBCCI solutions also offer a geographicallyredundant environment, simplified upgrades, timely access to new features,and no annual maintenance fees. The CBCCI vendors have invested millions ofdollars over the past 20 years to build their solutions and supporting networks.These solutions are generally much more technologically current than theirpremise-based counterparts. And the innovation keeps coming, includingthe introduction of artificial intelligence, machine learning, natural languageunderstanding and analytics into CBCCI solutions.The 2017-2018 Cloud-Based Contact Center Infrastructure Market Reportcovers 12 leading and contending vendors: 8x8, BroadSoft (who agreed tobe acquired by Cisco), Content Guru, eLoyalty, Enghouse Interactive, Five9,Genesys, NewVoiceMedia, NICE inContact, Serenova, Sharpen and Twilio.New to the Report in 2017 are: BroadSoft, eLoyalty, Genesys, Sharpen andTwilio. 8x8, Content Guru, Enghouse Interactive, Five9, NewVoice Media, NICEinContact (NICE acquired inContact in November 2016) and Serenova wereincluded in the 2016 – 2017 edition of this Report. The Report also includesa comprehensive Vendor Directory that lists providers of cloud-based contactcenter infrastructure systems around the world.Companies need solutions that protect them from security breaches suchas hacking, fraud and industrial espionage. They also need to secure theircustomers’ private and sensitive data, such as social security, credit card oraccount numbers, and protected health information. At the same time, theywww.dmgconsult.com3 2017 DMG Consulting LLC
Key Reasons to Buy this Report Review of the service deployment options for cloud-based contact centerinfrastructure solutions Overview of the core functional components of cloud-based contact centerinfrastructure solutions High-level technical analysis of each of the 12 solutions, including their multitenancy, integration, security and compliance capabilities The market and solution trends and challenges that are driving enterprise investmentsand influencing the direction of vendor research and development (R&D) Cloud-based contact center infrastructure market innovation, including a review ofrecently introduced capabilities, and functionality that is planned to be introducedin the next 12 – 18 months Candid discussion of what end users want most from their cloud-based contactcenter infrastructure vendor partner Examination of the omni-channel capabilities, supporting systems andapplications, and best practices that are required for digital transformation Practical recommendations and practices for developing and retaining agents inthe Millennial workforce A review of the WFO capabilities of the 12 leading and contending cloud-basedcontact center infrastructure vendors Cloud-based contact center infrastructure market activity and market shareanalysis, adoption rate, and 5-year projections Review and assessment of the cloud-based contact center infrastructurecompetitive landscape Overview of the 12 leading and contending cloud-based contact centerinfrastructure vendors, including company snapshots, vendor go-to-marketstrategies and product overviews, including offerings targeted at small and midsize businesses (SMBs) In-depth side-by-side comparative analyses of the key functional and technicalcapabilities of the 12 featured cloud-based contact center infrastructure solutions Implementation analysis, including a review of the vendors’ processes, training,professional services, support and best practices Comprehensive customer satisfaction survey results that measure and rank thevendors across 19 product components and 13 categories Vendor pricing analysis for 50-, 250- and 500- seat cloud-based contact centerinfrastructure implementations from the 12 featured providers Detailed company reports for the 12 leading and contending cloud-basedcontact center infrastructure vendors, analyzing their products, functionalityand future R&D plans Cloud-Based Contact Center Infrastructure Vendor Directorywww.dmgconsult.com4 2017 DMG Consulting LLC
Report Highlights A vast ecosystem of vendors in the CBCCI market presents a wide variety of choices for prospects and customers: Vendors from many categories areparticipating in this sector, expanding its presence and reach. CBCCI solutions offer many benefits: CBCCI solutions allow companies to concentrate on using its capabilities instead of spending their time implementing andmaintaining the system. Other important benefits include built-in system redundancy, simplified upgrades, timely access to new features and ongoing innovation,and elimination of annual solution maintenance fees. The CBCCI vendors are working to address users’ concerns about security and regulatory compliance: Users require solutions that protect data fromhacking and data tampering; sensitive customer information must also be secured. CBCCI solutions must also be able to address a growing number of regulatoryrequirements around the world, particularly for users in the financial services and healthcare verticals. A great deal of innovation is occurring in the cloud-based contact center sector: Two decades of investment have yielded cloud-based solutions that aremore current than their premise-based counterparts. The next step for the CBCCI vendors is to introduce artificial intelligence, machine learning, natural languageunderstanding and analytics into their solutions. The cloud-based contact center infrastructure market is poised for strong growth over the next few years: The CBCCI market is growing rapidly, anda tremendous untapped opportunity remains as more companies transition to the cloud. The revenue potential of this market is in the tens of billions, and DMGestimates that the number of seats will grow by 22% in 2017, 22.5% in 2018, 23% in both 2019 and 2020, and 21% in 2021.www.dmgconsult.com5 2017 DMG Consulting LLC
SAMPLE FIGURECloud-Based Contact CenterInfrastructure SolutionSource: DMG Consulting LLC, November 2017www.dmgconsult.com6 2017 DMG Consulting LLC
TABLE OF CONTENTS1 of 21.2.3.Executive SummaryIntroductionDMG Consulting Research Methodology3.1 Report Participation Criteria4.Service Delivery Models4.1 DMG Service Delivery Definitions4.2 Vendor Service Delivery Options5.Cloud-Based Contact Center Infrastructure Functional Overview5.1 Core Cloud-Based Contact Center Infrastructure Functional Components5.2 Core Cloud-Based Contact Center Infrastructure Functional ed , Reporting and Analytics6.Cloud-based Contact Center Infrastructure Technical Overview6.1 Core CBCCI Technical 3Security6.1.4Compliance Management7.Cloud-Based Contact Center Infrastructure Trends and Challenges7.1 Cloud-Based Contact Center Infrastructure Trends7.2 Cloud-Based Contact Center Infrastructure Challenges8.Cloud-Based Contact Center Infrastucture Market Innovation8.1 New Product Features8.2 Future Enhancements9.Cloud-Based Contact Center Vendors Deliver More Innovation with Less Effort9.1 Ease of Doing Business: One Vendor, One Solution9.2 The Quest for Highly Reliable System Performance9.3 Contact Center Expertise9.4 Ongoing Innovation9.5 Down but not Out: Disaster Recovery/ Business Continuity9.6 Cloud-Based Contact Center Infrastructure Vendor Selection Checklist10. Omni-Channel Contact Centers for the Digital Era10.1 Omni-Channel Contact Centers are the Future of Sales, Service and Support10.2 Building and Transitioning to an Omni-Channel Contact Center Environment10.3 The Omni-Channel Agent Experience10.4 The Omni-Channel Supervisor Experience11.Omni-Channel Key Performance Indicators11.1 Contact Center KPI Requirements11.2 Top Contact Center KPIs11.3 KPIs to Engage and Motivate Agents12. Super Agents: A Guide to Developing, Engaging and Retaining Omni-Channel Agents12.1 Agent Engagement Best Practices12.2 Good and Bad Agent Attrition12.3 Focus on Agent Retention13. Workforce Optimization Suites: An Ideal Complement to Cloud-Based Contact Center Infrastructure13.1 WFO Defined13.2 WFO Capabilities of Cloud-Based Contact Center Infrastructure Solutions13.2.1 Recording13.2.2 Quality Assurance/Quality Management13.2.3 Workforce Management13.2.4Performance Management13.2.5 Gamificationwww.dmgconsult.com7 2017 DMG Consulting LLC
TABLE OF CONTENTS2 of 213.2.6 Voice of the Customer/Voice of the Employee/Surveying13.3 WFO Analytics Offerings13.3.1Speech Analytics13.3.2 Text Analytics13.2.3 Desktop Analytics13.2.4 Robotic Process Automation13.2.5 Customer Journey Analytics14.Cloud-Based Contact Center Infrastructure Market Activity Analysis14.1 Cloud-Based Contact Center Infrastructure Customers and Seats15. Cloud-Based Contact Center Infrastructure Market Projections16.Adoption of Cloud-Based Contact Center Infrastructure Solutions17. Cloud-Based Contact Center Infrastucture Competitive Landscape17.1 What is a Contact Center Infrastructure Solution?17.2 Hybrid Contact Center Software17.3 What Companies Should Look For When Selecting Cloud-Based Vendors17.4 What’s Next for the Cloud-Based Contact Center Infrastructure Market18.CBCCI Vendors and Solutions18.1 Company Snapshot18.2 Vendor Strategy18.3 Cloud-Based Contact Center Infrastructure High-Level Functional Summary18.4 SMB Offerings19.Implementing and Managing a Cloud-Based Contact Center Infrastucture Solution19.1 Implementation Analysis19.2 Cloud-Based Contact Center Intrastructure Implementation Best Practices19.3 License Management19.4 Maintenance and Ongoing Support20. Cloud-Based Contact Center Infrastructure Vendor Satisfaction Analysis20.1 Summary of Survey Findings and Analysis: Vendor Categories20.2 Summary of Survey Findings and Analysis:Product Categories20.2.1 Product Satisfaction by Sub-Category and Customer20.3 Customer Background and Insights20.3.1 Customer Background20.3.2 Customer Insights20.3.3 Challenges to Address by Implementing a Cloud-Based Contact Center Infrastructure Solution20.3.4 Strengths of Cloud-Based Contact CenterInfrastructure Solutions20.3.5 Product Enhancements20.3.6 Additional Comments21.Pricing21.1 Pricing Structure21.2 Pricing for a 50-Seat Implementation21.3 Pricing for a 250-Seat Implementation21.4 Pricing for a 500-Seat Implementation22. Company Reports22.1 8x8, Inc.22.2 BroadSoft, Inc.22.3 Content Guru22.4 eLoyalty, LLC (a TeleTech Company)22.5 Enghouse Interactive22.6 Five9, Inc.22.7 Genesys22.8 NewVoiceMedia22.9 NICE inContact22.10 Serenova22.11 Sharpen22.12 Twilio, Inc.Appendix: Cloud-Based Contact Center Infrastructure Vendor Directorywww.dmgconsult.com8 2017 DMG Consulting LLC
TABLE OF FIGURESFigure 1:Figure 2:Figure 3:Figure 4:Figure 5.1:Figure 5.2:Figure 6.1:Figure 6.2:Figure 7.1:Figure 7.2:Figure 8.1:Figure 8.2:Figure 9.1:Figure 9.2:Figure 10.1:Figure 10.2:Figure 11.1:Figure 11.2:Figure 12.1:Figure 12.2:Figure 13.1:Figure 13.2:Figure 14:.1:Figure 14: 2:Figure 15.1:Figure 15.2:Figure 16.1:Figure 16.2:Figure 17:Figure 18:Figure 19:Figure 20:Figure 21:Figure 22:Figure 23.1:Figure 23.2:Figure 24.1:Figure 24.2:Figure 25.1:Figure 25.2:Figure 26:Figure 27:Figure 28.1:Figure 28.2:Figure 29.1:Figure 29.2:Figure 30.1:Figure 30.2:Figure 31:Figure 32:Figure 33:Figure 34:Figure 35:Figure 36.1:Figure 36.2:Figure 37.1:1 of 2Service Delivery Models, Advantages and DisadvantagesDMG’s Service Delivery DefinitionsVendor Service Delivery OptionsCloud-Based Contact Center SolutionsAutomatic Call Distributor (ACD)Automatic Call Distributor (ACD)IVR/IVAIVR/IVAComputer Telephony IntegrationComputer Telephony IntegrationUnified CommunicationsUnified CommunicationsOutbound SolutionOutbound SolutionCustomer Relationship ManagementCustomer Relationship ManagementDashboards, Reporting and Analytical CapabilitiesDashboards, Reporting and Analytical CapabilitiesHigh-Level Technical AnalysisHigh-Level Technical AnalysisMulti-TenancyMulti-TenancyIntegration CapabilitiesIntegration CapabilitiesSecuritySecurityCompliance FeaturesCompliance FeaturesCloud-Based Contact Center Infrastructure TrendsCloud-Based Contact Center Infrastructure ChallengesNew Product Features, by VendorNew Product Features, by CategoryFuture Enhancements, by CategoryCore Functional CapabilitiesService Level Agreements (SLAs)Service Level Agreements (SLAs)Professional Services and TrainingProfessional Services and TrainingData Center, Back-Up, Disaster Recovery and ContingencyData Center, Back-Up, Disaster Recovery and ContingencyVendor Selection ChecklistOmni-Channel Contact CenterOmni-Channel CapabilitiesOmni-Channel CapabilitiesAgent DesktopAgent DesktopSupervisor InterfaceSupervisor InterfaceContact Center KPIsAgent Balanced ScorecardThe Super-AgentAgent Success CycleContact Center Workforce Optimization SuiteRecordingRecordingQuality Management (QM)www.dmgconsult.com9 2017 DMG Consulting LLC
TABLE OF FIGURESFigure 37.2:Figure 38:Figure 39.1:Figure 39.2:Figure 40:Figure 41.1:Figure 41.2:Figure 42.1:Figure 42.2:Figure 43.1:Figure 43.2:Figure 44:Figure 45:Figure 46.1:Figure 46.2:Figure 47:Figure 48.1:Figure 48.2:Figure 49:Figure 50.1:Figure 50.2:Figure 51:Figure 52.1:Figure 52.2:Figure 53:Figure 54.1:Figure 54.2:Figure 55:Figure 56:Figure 57:Figure 58:Figure 59:Figure 60:Figure 61:Figure 62:Figure 63:Figure 64:Figure 65:Figure 66:Figure 67:Figure 68:Figure 69:Figure 70.1:Figure 70.2:Figure 71:Figure 72.1:Figure 72.2:Figure 73.1:Figure 73.2:Figure 74:Figure 75.1:Figure 75.2:Figure 76.1:Figure 76.2:Figure 77.1:Figure 77.2:2 of 2Quality Management (QM)WFM Building BlocksWorkforce Management (WFM)Workforce Management (WFM)Historical vs. Real-Time Performance ManagementPerformance ManagementPerformance ManagementGamificationGamificationSurveying/Voice of the Customer (VoC)Surveying/Voice of the Customer (VoC)What is Speech Analytics?Historical vs. Real-Time Speech Analytics Use CasesSpeech AnalyticsSpeech AnalyticsText AnalyticsText AnalyticsText AnalyticsDesktop Analytics DefinedDesktop AnalyticsDesktop AnalyticsRobotic Process Automation (RPA)Robotic Process Automation (RPA) and Desktop AnalyticsRobotic Process Automation (RPA) and Desktop AnalyticsCJA DefinedCustomer Journey Analytics (CJA)Customer Journey Analytics (CJA)2016 Cloud-Based Contact Center Infrastructure Customers and Seats, as of July 20172016 Cloud-Based Contact Center Infrastructure Market Activity, as of July 2017Cloud-Based Contact Center Infrastructure Market Share, by Seats, as of July 2017Cloud-Based Contact Center Infrastructure Market Share, by Customers, as of July 2017Cloud-Based Contact Center Infrastructure Market Activity by Number of Seats, 2016 vs. 2015 ComparisonCloud-Based Contact Center Infrastructure Market Activity by Number of Seats, 2016 vs. 2015 ComparisonCloud-Based Contact Center Infrastructure Market Activityby Number of Customers, 2016 vs. 2015 ComparisonCloud-Based Contact Center Infrastructure Market Activity by Number of Customers, 2016 vs. 2015 ComparisonCloud-Based Contact Center Infrastructure Seat Trend Analysis, 2008 – 2016Cloud-Based Contact Center Infrastructure Seat Trend Analysis, 2008 – 2016Cloud-Based Contact Center Infrastructure Seat Projections, 2017 – 2021Cloud-Based Contact Center Infrastructure Seats and Growth RatesCloud-Based Contact Center Infrastructure Actual 2008 – 2016 Seats and Growth RatesCloud-Based Contact Center Infrastructure, Projected 2017 – 2021 Seats and Growth RatesCloud-Based Contact Center Infrastructure Seats, Growth and Adoption Rates, 2008 – 2016Company InformationCompany InformationVendor StrategyHigh-Level Functional SummaryHigh-Level Functional SummarySmall/Mid-Size Business (SMB) OfferingSmall/Mid-Size Business (SMB) OfferingEnterprise Resources for Cloud Contact Center Infrastructure SolutionsImplementation AnalysisImplementation AnalysisImplementation AnalysisImplementation AnalysisLicense ManagementLicense Managementwww.dmgconsult.com10 2017 DMG Consulting LLC
TABLE OF FIGURESFigure 78.1:Figure 78.2:Figure 79:Figure 80:Figure 81:Figure 82:Figure 83:Figure 84:Figure 85:Figure 86:Figure 87:Figure 88:Figure 89:Figure 90:Figure 91:Figure 92:Figure 93:Figure 94:Figure 95:Figure 96:Figure 97:Figure 98:Figure 99:Figure 100:Figure 101:Figure 102:Figure 103:Figure 104:Figure 105:Figure 106:Figure 107:Figure 108:Figure 109:Figure 110:Figure 111:Figure 112:Figure 113:Figure 114:Figure 115:Figure 116:Figure 117:Figure 118:Figure 119:Figure 120.1:Figure 120.2:Figure121.1Figure 121.2Figure 122.1Figure 122.2Figure 123.1Figure 123.22 of 2Maintenance and Ongoing SupportMaintenance and Ongoing SupportCustomer Survey Rating CategoriesAverage Satisfaction Ratings, by CategoryCurrent Product Satisfaction Ratings, by CustomerImplementation Satisfaction Ratings, by CustomerSystem Availability and Up-Time Satisfaction Ratings, by CustomerProfessional Services Satisfaction Ratings, by CustomerTraining/Workshops Satisfaction Ratings, by CustomerService and Support Satisfaction Ratings, by CustomerSystem Upgrade Satisfaction Ratings, by CustomerInnovation Satisfaction Ratings, by CustomerEase of
need to comply with a proliferation of regulatory requirements around the world, including the Health Insurance Portability and Accountability Act (HIPAA) . Five9, NewVoice Media, NICE inContact (NICE acquired inContact in November 2016) and Serenova were included in the 2016 – 2017 edition of this Report. . High-level technical analysis .
