Mid-Summer’s Musings (Part 2)

If you haven’t read part one, start there.

The UC market in North America is less than 25 percent penetrated and the Cloud Contact Center (CCC) market is less than 15%. Despite 17 years of effort on the part of 2000+ providers.

Avaya has a huge customer base (100M+ UC seats and 5.5M contact center seats) that have yet to migrate to the cloud.

NEC has over 80 million business users worldwide, NEC is in the top three globally for installed unified communications seats, and ranks No. 1 for global line shipments over the past 3 quarters. [source]

Mitel has 3.2 million seats, most of which have not gone cloud.

183M premise based seats!!!! That is just 3 PBX manufacturers. There are many users still captured on Cisco Call Manager and HCS as well as outdated PBX from extinct manufacturers.

The Big Question: Do these customers migrate to the cloud with the same PBX vendor or do they RFP it?

The next question: What is the incentive for the sales reps for these legacy companies to migrate users to the cloud when they are certainly making money on them now? Follow up: Do these reps even have the skills to sell a cloud solution after years of pushing boxes?

On the Buyers’ Side:

When users move, do they want to get another best-of-breed solution like they did when they purchased Mitel/NEC/Avaya 15 years ago? Will they migrate to separate UC and CCC vendors? Or will they choose a platform – such as 8×8, RingCentral, Nextiva, Dialpad, Vonage or Intermedia? Or do they go Microsoft Teams and a Cloud Contact Center? There is a lot of choice now in the marketplace. Way more than there was ten years ago.

In addition, do these buyers now desire an Agent focused, Call Center specific vendor – like Genesys, NICE Incontact, Serenova/Lifesize or Five9? Or do they want a more general purpose built platform for communicating with customers, prospects, vendors, employees that also allows for contact center ability in various departments like accounts receivable, customer care and support? That is where the sector is going – either agent-centric or ecosystem.

Even the ecosystem model allows for build it yourself with Salesforce, Amazon, Twilio and Vonage and a devops team.

Extra Tidbits:

Zoom revenue has grown 272% in the first six months of its fiscal year. $ZM is up 397% over the past year and now worth nearly $130 billion.

Dialpad acquired HighFive (video conferencing) to add to Dialpad, its contact center and its UberConference platforms.

The entire addressable fixed broadband market in the U.S. is well over than 100 million subscribers, 40% of which get their connectivity from Comcast. FastCo

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