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Hosted vs. Cloud: Evaluating Contact Center Solution Delivery
While the terms “hosted” and “the cloud” are sometimes used interchangeably, it’s important to understand that the two delivery methods are different, particularly when shopping for enterprise software. There are pros and cons to each model, and companies choosing the delivery method of a non-premises-based solution must examine the benefits and drawbacks of both to find the method that suits them best.
A hosted solution is an application that sits on a client server of the solution vendor or a third-party that provides a data center. This dedicated server provides functionality to users through an Internet connection. It’s likely to be less flexible than a true cloud-based solution, writes Monet Software CEO Chuck Ciarlo in a recent blog post.
“Much more costly and less scalable, it also requires support for multiple releases, which is very resource intensive,” writes Ciarlo. “Typically, vendors who sell on-premise software may offer a hosted model for on-demand options and sometimes misleadingly call it SaaS (News - Alert) or Cloud.”
True cloud, of course, is built on a multi-tenant architecture that was designed to efficiently and securely deliver Web-based applications at the lowest possible cost, writes Ciarlo.
“It focuses on fast set up, low operating costs through shared services, highest security for web-based deployment and high performance and scalability through instant and seamless scaling of computer resources (also called “elastic cloud computing”),” he writes. “This ensures available computing capacity when you need it and only when you need it, at the lowest possible cost.”
Experts advise that companies understand their needs and wants before they go shopping so they can determine what works best for them. There are those who maintain that the hosted version can offer better data security (although others dispute this). Other important considerations include the ease of updates and upgrades (are they free or do they cost the end user money?), how well the solution integrates with other key call center applications, whether the solution offers the 99.5 percent (or better) uptime necessary in the call center industry and how the solution is secured against data theft and for the purposes of legal compliance.
It’s also vital, says Ciarlo, to evaluate the value being offered by the two different models.
“Non-cloud solution often have unexpected or hidden costs that emerge later,” he writes. “You should receive a firm quote on total cost of ownership (TCO), including implementation/installation fees, training, subscription, upgrades, maintenance and other components.”
There’s no single “right” solution for all contact centers. Depending on the size of the company, the nature of the business and how distributed the workforce is, one model may be more compelling than another. Find vendors who are willing to lay out all the information for you (and go armed with your own knowledge and data). A true partner will have nothing to hide.
Edited by Stefania Viscusi