Cloud UC, Contact Center Show Cost Savings – in Some Cases

Cloud UC, Contact Center Show Cost Savings – in Some Cases

Organizations are starting to show cost savings when they shift to shared cloud services for Unified Communications and Collaboration (UCC) and contact center.

In years past, though IT leaders anticipated cost savings when they moved to the cloud, they did not actually realize that savings right away. For many organizations, it takes two to three years before they start seeing that savings.

When companies move to cloud, they eliminate equipment maintenance costs, but they gain monthly subscription fees. In many cases, those two cancel each other. Vendors and IT staffs then thought they would save money on IT staffing costs because they were offloading day-to-day responsibility for UCC or contact center to a partner.

However, they quickly saw that didn’t come to fruition. In fact, larger companies even increased IT staff costs. They needed people to address four core areas:

  1. Technology integrations
  2. Relationship management with the new cloud partner
  3. Employee and IT staff training
  4. Strategic use of UCC apps to resolve problems or leverage opportunities

Smaller companies (those with fewer than 1,000 licenses for UC, or 100 licenses for contact center) have moved to the cloud more quickly than larger companies. In mass, they are anywhere from two to six years into their deployments.

We’re seeing cost savings now, compared to those still on-premises, primarily because they have reassigned IT staff to other areas and/or because on-premises equipment maintenance costs are increasing. For example, companies with fewer than 1,000 user licenses using a single provider for UCC spend $1,830 per license, per year when on-premises, vs. $1,153 for UC as a Service (UCaaS). Lowest overall costs come from Zoom, RingCentral, Verizon, and CenturyLink.

In the contact center, those with fewer than 100 agent licenses spend $2,547 annually for an on-premises system, vs. $2,272 for Contact Center as a Service (CCaaS). This includes both subscription costs for the entire agent desktop, as well as the associated IT support costs. For small rollouts, the lowest IT support costs are with Talkdesk, Amazon, RingCentral, and Genesys. IT support costs for large contact centers also are lowest with RingCentral and Genesys, along with Cisco and AT&T.

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