Should your CX operations be on-prem, or is it finally time to migrate?

As the CX landscape evolves, contact centers face a critical decision; stick with on-prem solutions or migrate to the cloud? This choice isn’t just a matter of following trends, it’s about aligning technology with business goals and customer needs.

The shift towards cloud-based contact centers has gained momentum, yet on-premises solutions persist. A 2023 Metrigy study revealed that only 29.5% of global organizations have switched to Contact Center as a Service (CCaaS).

However, 48% of these businesses – that’s almost half! – are considering changing CCaaS platform providers, with 14% even contemplating a return to on-premises platforms. This shows that the decision to move away from on-prem operations is not that straightforward of a decision—and making the the right choice for your organization is extremely important.

What’s driving the move towards cloud contact centers?

For many businesses, cloud solutions offer lower capital expenditure, improved security, and access to cutting-edge technologies. These benefits are particularly attractive now, where customer expectations are constantly evolving, and businesses need to adapt quickly.

Cloud-based contact centers also facilitate seamless integration with broader CX processes. For example, many organizations are moving their CRM systems to the cloud. Having a cloud-based contact center allows for easier integration, enabling a more holistic view of the customer journey and more personalized interactions.

From a vendor perspective, prioritizing cloud solutions makes sense. It’s more cost-effective to maintain and update a single platform rather than supporting both cloud and on-premises versions. This consolidation allows vendors to focus their resources on innovation and improvement, potentially leading to better products and services for their customers.

Should your CX be on-prem?

While the cloud offers numerous advantages, there are valid reasons why some organizations choose to maintain on-prem solutions. Regulatory requirements in certain industries and jurisdictions may require keeping data and systems on-site. For example, financial services or healthcare organizations often face strict data privacy and security regulations that can be easier to manage with on-premises solutions.

Data sovereignty and governance are also important concerns, particularly for multinational corporations or those operating in regions with strict data localization laws. On-premises solutions provide greater control over where data is stored and how it’s managed, which can be crucial for compliance.

Some organizations prefer the level of control and customization that on-premises solutions offer. They may have unique integrations or workflows that are hard to replicate in a cloud environment. Plus, for businesses with massive investments in existing infrastructure, the cost considerations of “sweating the assets” can make staying on-premises more attractive in the short term.

However, it’s important to note that while these factors are valid, they don’t necessarily make moving to the cloud impossible. Many cloud providers now offer solutions that address these concerns, such as private cloud options or hybrid deployments that can satisfy regulatory requirements while still providing some of the benefits of cloud technology.

What should you consider when making the decision?

When weighing your options, several key factors deserve consideration. First, consider the pace of innovation. Cloud solutions often receive updates and new features more frequently, which can be crucial in the fast-evolving CX landscape. However, some on-premises vendors are also making strides in this area, so it’s worth investigating the roadmap of any solution you’re considering.

Openness and integration capabilities will also be an advantage. Your contact center doesn’t operate in isolation; it needs to work seamlessly with your other business systems. Look for solutions that offer robust APIs and pre-built integrations with common business tools like your CRM, ERP, and sales automation tools.

Modern software architecture is also something you must consider in this case. Whether cloud or on-premises, a solution built on modern architecture will be more flexible, scalable, and future-proof. This is particularly important when considering the integration of new technologies to support your agents.

In fact, 74% of agents say that having access to more tools and data will give them more opportunities to personalize interactions. Migration to a modern platform can enable the integration of technologies like ACD, IVR, intelligent call routing, and chatbots. These tools can significantly enhance your agents’ ability to deliver personalized, efficient service.

Finally, consider solutions that offer flexibility between on-premises and cloud deployments. Your needs may change over time, and a solution that allows for hybrid deployments or easy migration between on-premises and cloud can provide valuable future-proofing.

There is no one-size-fits-all answer when it comes to CX—make an informed decision for optimal CX delivery

As we’ve explored, the choice between on-premises and cloud-based contact centers isn’t straightforward. There’s no universal solution that fits every organization. Your decision should be based on a thorough assessment of your unique needs, regulatory environment, existing infrastructure, and long-term business goals.

If you’re currently on-premises, is it time to explore the benefits of CCaaS migration? If you’ve already moved to the cloud, are you leveraging its full potential?

Remember, the ultimate goal is to deliver exceptional customer experiences. Whether you choose to stay on-premises or migrate to the cloud, the key is to select a solution that enables you to meet and exceed your customers’ expectations.