Cloud-based Communications is Here to Stay

Starts and stops…more starts…more stops. That is what multi-named hosted, on-demand, or cloud-based computing and communications has seen since the early 90’s when the ASP (application service provider) was touted as a model to change technology forever. Well, here’s a new flash for you…this time it stuck!

Adoption rates of cloud-based communication services are growing fast. Some vendors of those services are posting order growth rates of more than 100% year/year. And the well-respected analyst firm Ovum shows premise-based contact center growth for the next five years of less than 3%, but growth of the cloud-based contact center market to be 17%-20% for that same period of time.

The reasons you ask? First, the technology deployment model has been proven by companies such as Salesforce.com. Additionally, issues such as security, reliability, and control have been minimized, if not eliminated completely. With those items behind us, the as-a-service model is now exploding because  customers are seeing the primary benefits. As I talk to customers, analysts, and any other smart person I can get an opinion from, the primary drivers for adoption of cloud-based communications are:

  • Increased flexibility (such as the ability to add and reduce user counts to meet demand
  • Faster deployment time (significantly less than premise deployments
  • Minimal upfront capital expense (no big upfront check to write or get approved)
  • Reduced IT requirements (from staffing to power, to administration, to server requirements)

Have you made the switch to cloud-based communications? Are you considering such a move? Share you comments with our readers.

Joe Staples — CMO and cloud seed pilot