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Yana Ermilova - Blog

CX Experts


The Cloud holds all the advantages for directors and managers of small to mid-sized Contact Centers (30-400 agents) In the U.S. and Canada. The top-level Contact Center as a service (CCaaS) solutions give you access to features and applications that were previously only affordable for the large end contact centers.


Not only will access to omnichannel functions, Dialers, Analytics, Call Routing, Work Force Management, IVR, Data Base Dips and automated Work Flows send your efficiency through the roof! They also give you the ROI to build the case that this top end CCaaS solution will pay for it-self.

Combine these with the ability to make your IT team happy by getting rid of all the on-site equipment and greatly reducing their required interactions with the Contact Center and the advantages continue to grow.

The last step is the TCO that will help show your CFO that there is no other direction.


In the following TCO comparison we look at the TCO for a mid-level premise based Contact Center solution that you find in the Gartner Challengers quadrant. We use an 80-agent example to compare the TCO of a premise solution at this size to a top-level Cloud offering, that can bring more high -end features and applications to the table. As well as next generation integrations and work flows.





Business Users 50  $28,750.00   $7,749.50 
Inbound Agents 80  $56,000.00   $5,599.20 
Outbound or Blended Agents 20  $4,000.00   
Supervisors 10  $7,000.00   $699.90 
Telco Voice Monthly Costs 3  $1,500.00   $700.00 
Call Minutes Per Month      
Data Center or Internal Rack Space 1  $600.00   $-   
Annual Upgrade Costs 1  $4,500.00   $-   
Implementation 1  $45,000.00   $14,000.00 
Annual Support Costs 1  $16,000.00   $7,500.00 
Annual Technical Labor Costs 1  $30,000.00   $10,000.00 

Total Day One Cost




On Going Annual Cost    $75,700.00   $105,083.20 
Year 2    $75,700.00   $105,083.20 
Year 3    $75,700.00   $105,083.20 

TOTAL at 4 years




The much larger upfront costs, coupled with a moderate dedicated labor cost and the ongoing support pushes the breakeven past 48 months. When you factor in the rapid pace of new application and feature development that the Cloud adopts rapidly to and the likelihood that very few premise-based solutions will continue innovation on their premise contact centers past the next 24-36 months a strong case is built for CCaaS. 


In the second comparison, we look at the TCO for a high-level premise based Contact Centre solution like you would find in the Gartner Leaders Quadrant. We use a larger contact center of 140 agents for the comparison. These solution for the most part have been restricted to Contact Centers with more than 500 agents but with the demand for the functionalities they bring and the ability for good Contact Centers to produce real ROI they bring value to many Contact Centers in this mid-sized market.





Business Users 75  $37,500.00   $11,624.25 
Inbound Agents 140  $238,000.00   $13,998.60 
Outbound or Blended Agents 40  $8,000.00   
Supervisors 15  $25,500.00   $1,499.85 
Telco Voice Monthly Costs 6  $2,700.00   $1,800.00 
Call Minutes Per Month      
Data Center or Internal Rack Space 1  $900.00   $-   
Annual Upgrade Costs 1  $7,500.00   $-   
Implementation 1  $95,000.00   $14,000.00 
Annual Support Costs 1  $54,300.00   $18,000.00 
Annual Labor Costs 1.5  $75,000.00   $25,000.00 

Total Day One Cost




Ongoing Annual Cost    $130,000.00   $246,972.40 
Year 2    $130,000.00   $246,972.40 
Year 3    $130,000.00   $246,972.40 

TOTAL at 4 years




Using the same parameters adjusted for size and a larger dedicated labor cost we see once again a TCO pushed past 48 months. Although it is far more likely in these Leader Quadrant solutions development of new software and features will good out much longer than the small market, feature parity for the top-level cloud solutions is closing in fast. Like the mid-level there is a great case for the CCaaS being the best solutions for this space.

The examples above are based on the average cost of the leading premise solutions and the PureCloud prices in the Cloud space. 


Publish Date: October 24, 2017 9:15 PM

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