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What Are the Costs of Cloud Contact Centers Compared to On-Premise Contact Centers?

June 17, 2017 / Evolve IP

The market for the cloud is growing rapidly. The business market is ready for Software as a Service (SaaS) solutions. CIOs give the flexibility and scalability of the cloud as the most important reason. Furthermore, another beneficial factor is moving towards a predictable cost model where you pay for the features that you actually use. No more investments in expensive systems of which you do not use all the features and that is dimensioned as such that the annual peak loads can be absorbed.


Difference in Flexibility

Customer contact centres can gain a big advantage through the flexibility and scalability of a cloud contact centre. For example, think about absorbing seasonal influences and temporary spikes in load with flexible user models. In addition, it is frequently so that the licensing models of our on-premise systems are based on the total number of users and not based on the number of concurrent users.


No Investment Costs

The Total Cost of Ownership (TCO) of cloud solutions and on-premise software (locally installed in the organisation) also differs. By purchasing business software from the cloud you shift your investment costs to operational costs. This means that the cash flows can be better aligned to the benefits associated with the migration to the cloud.

So, at the start of a project, you, therefore, do not have to make an investment overview for the licensing fees and the required capital investment. In addition, the assets associated with this investment as well as future depreciations can be removed from your balance sheet.


No Hidden Costs

When looking at the savings to be made, look further than just the operational costs for maintaining and managing the system. You also make savings because you no longer need to manage an on-premise environment. For example, think of the maintenance costs for buildings, costs of the required IT infrastructure, staffing savings, lower telecommunication costs and the costs associated with upgrades and patches to your system. These costs are avoided when you purchase your contact centre as a cloud service.


Always the Latest Version

With a cloud service, you always have the latest version and you do not have to invest in a new system with the associated infrastructure every six to eight years. The requirements for the necessary infrastructure and technological systems become increasingly more unmanageable when the used technology ages. With an OPEX model, you have more flexibility to respond to the changing demands of the business sector. In addition, you are freeing up working capital for critical IT projects that support your core business, instead of investing this money in renewing the hardware and infrastructure.


Cost Transparency

The costs of cloud contact centre systems are much more transparent than in case of on-premise. In the case of cloud software, it is known in advance that 68% of the costs are in the (monthly) subscription. In case of on-premise, only the software license is known in advance (9% of the costs). This according to research by Nucleus Research.

In case of on-premise, the majority of the costs is incurred for customisation, implementation, hardware, IT staff, maintenance and training. With cloud software, the unforeseen costs are particularly found in the implementation, customisation and training. Hardware and maintenance are often not charged to the customer, resulting in the costs becoming much more transparent.


Making the Right Choice

If you are looking for a flexible and scalable environment, then the choice of rolling out your contact centre in the cloud is easy to make. The benefits of a Cloud Contact Centre only increase when you want to deploy multiple locations, a flexible pool of employees or use multiple applications and features.


Mtel, the Communication Partner in Customer Contact

Would you like to discuss your advantage with one of our consultants? Evolve IP would like to discuss with you what you can achieve with a Cloud Contact Centre. Contact an Evolve IP consultant via +44 (0)203 326 0800 or


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