November 10

Why is enterprise CCaaS penetration low despite its benefits?

CCaaS solutions aim to improve CX operations by improving flexibility for both agents and customers, facilitating scalability, and providing ease of integration.

However, even with these benefits, enterprise CCaaS penetration is still extremely low. Five9’s Chairman & CEO, Mike Burkland, remarked during an earnings call that in terms of cloud replacing on-premise operations, enterprise penetration may still only be around 20%.

This was corroborated by Gartner’s findings, which predicted that only 33% of enterprises have migrated their contact centers to the cloud—which included mid-market calculations.

Let’s explore why enterprise CCaaS penetration may be this low despite its benefits, and how the challenges in migration could be addressed.

Why enterprise CCaaS penetration is low

Historically, the reason behind enterprises not embracing CCaaS was that they tended to have larger contact centers, and the value proposition of CCaaS simply did not resonate with them due to its smaller scale back in the day.

However, this has changed in recent years with more enterprise-focused CCaaS solutions being developed. The above figures from Five9 and Gartner appear in this landscape. So, why might this be?

The investment enterprises have already made in legacy systems can be a big reason for their unwillingness to shift to a cloud CX environment. As stated before, enterprise contact centers tend to be big operations, and they tend to invest a lot more into their contact centers than small or medium-sized businesses.

Integration challenges are also highly prevalent for CCaaS migration across the board. In fact, 62% of organizations cited integration challenges as one of the main reasons for them not moving forward with CCaaS migration.

Security concerns are also a big issue that organizations face in this context. Enterprises in particular face a wide range of data security and privacy challenges in a regulatory sense that must be addressed both legally and operationally. Since cloud migration comes with its own set of challenges despite being much safer in general, enterprises are reluctant to migrate.

Modern solutions to modern problems

Even though enterprises are facing all of these challenges, more cloud migration initiatives are slowly taking hold. Growth in the global digital transformation market is a great example of this—showcasing a compound growth rate of 26.7% from 2023 to 2030.

Even legacy contact center service providers are encouraging their customers to make the shift to the cloud. For example, Genesys stopped its legacy offerings last year and is now completely focused on its cloud CX offerings.

Solutions to facilitate a smoother transition to the cloud have also become more commonplace in recent years. In this context, one of the most impactful offerings is solutions for automated discovery for CCaaS migration.

Automated discovery solutions for CCaaS migration are driving enterprise adoption

Automating a vast majority of core processes associated with pre-migration and migration workflows, these solutions can accelerate the process of transition by up to 25%—all the while driving down costs and resource requirements through automated discovery.

While enterprise CCaaS penetration is low at present, these types of solutions are driving transformation and adoption of cloud technologies across the enterprise landscape.

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