Misconceptions about Hosted Call Center Solutions

A recent paper by the research firm DMG Consulting discusses five top misconceptions about hosted call center solutions. We would like to add to this from the “cloud computing” perspective. So, here are the misconceptions and our comments:

  1. It’s only for small contact centers: Actually, with the cloud based approach it is easy to scale and address the needs of larger centers and/or larger organizations. The required computing power can easily grow (and shrink) based on the customer needs – this is called “elastic computing”. There are many cloud computing companies (e.g. salesforce.com) that successfully provide cloud solutions to very large enterprises.
  2. Limited functionality: Since many cloud based solution are already in the 2nd or 3rd version, they offer very rich functionality. Often, they are easier to use and provide an fast way to add new features through automated upgrades.
  3. Not flexible and customizable: Cloud computing solution were designed with lots of users and different customer needs in mind. Therefore, they have a more flexible architecture and often allow customization and configuration without programming.
  4. Implementations and integrations are more difficult than premise-based initiatives. Cloud based solution have a more flexible architecture and they were designed with “inter-connectivity” in mind, knowing that “island” solutions won’t be successful.
  5. Hosting has a higher total cost of ownership than premise-based solutions: If you do a “total cost of ownership” comparison, the cloud based solutions have a clear advantage. In addition to avoiding the overall investment risk of a large upfront capital expenditure, there are costs that are often hidden, such as: upgrades, hardware, ongoing operation, additional software (database, etc.), backup solutions, and IT staffing.
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