Communications as a Service (CaaS) Featured Article

Frost & Sullivan: Big Gains Ahead for Australian Cloud Contact Center Market

October 06, 2015

The cloud contact center market is growing in popularity and importance worldwide, and a new report from Frost & Sullivan (News - Alert) shows how far this market has to go, even with the impressive gains it’s made in the recent past.

In 2014, the Frost & Sullivan report notes, the Australian cloud contact center market represented $6.1 million in revenues, as more small and medium-sized businesses (SMBs) in the region brought cloud capabilities into play. The move to lower cost operations that focused on a pay-as-you-go billing model proved enticing to Australian firms, and the ability to stage a more mobile workforce that could turn most any mobile device into a contact center was hard to pass up.

Indeed, the developments brought by the cloud contact center are proving valuable, as the Frost & Sullivan survey expects the market to reach fully $51 million by 2021, with a compound annual growth rate (CAGR) of 35.4 percent in the time between 2014 and 2021. This will be largely driven by further growth in the field, and steadily-increasing business use of cloud computing technologies. A report from the Australian Bureau of Statistics reveals that, even back in the 2013-2014 reporting period, almost 70 percent of businesses were using cloud services, and of those, one in five was turning to a paid service.

Audrey William, who serves as Frost & Sullivan's head of ICT research in Australia and New Zealand, offered up some comment around the use of cloud, noting that cloud was often less expensive than using on-premises systems. She further noted “Costs associated with consulting, implementation, maintenance and service are quite high for the on-premise model for many SMBs. Cloud as a platform will enable various technologies such as mobility, WebRTC, mobile self-service via applications and Web self-service will soon become a reality in the contact center space.”

It's something of a misnomer to call cloud services cheaper than on-premises systems. While cloud systems come without the hefty onboard costs that the on-premises equivalents do, cloud systems generally demand monthly payments for continued use. Essentially, that one-time payment of an on-premises system is replaced with smaller, but more frequent payments, so that's a consideration to keep on hand as well.

But it's easy to see where cloud services could have room to expand, especially given that there is not only a large chunk of Australian businesses that aren't using such services at all, but also a fairly large number that aren't using paid services, either. Get either of those markets in play, and that could be the driving force behind some major expansions in the market.

While there is value to both cloud-based and on-premises solutions alike, it comes down to a matter of choice more than anything else. For the SMB market, meanwhile—particularly the SMB market in Australia—the choice appears to have been made, and the choice looks like it's overwhelmingly in favor of cloud systems.




Edited by Kyle Piscioniere

Article comments powered by Disqus




Communications as a Service (CaaS) Homepage ››