CCMG After Forever Conference Day 2, Solutions Stream 11:00 - “To Cloud or Not To Cloud – the big Contact Centre Question, Interactive Intelligence

1. “To Cloud or Not To Cloud – the big
Contact Centre Question
Pani Harito, Territory Manager – South Africa

2. Who we are and what we do

3. Mission
Founded in 1994
by Dr. Don Brown

4. Global Coverage
Over 6,000 customers
in 96 countries

5. Since 1994
All-in-One, All-Software
Solid Exec. Team Origin
35+ Offices
20 Countries
1800 Employees Reach
In SA since 2001
>50 employees
SMaleas,r Skueptpsort
>6,000 Customers
100+ Countries
Deep Vertical Focus Customers
Global Ecosystem for
Support and Service
Cloud or Premises Distribution
$318M in 2013
34% growth
No Debt Financials

6. Interactive Intelligence SA Office

7. Local Customers
More than 60 customers in Africa – via Direct and Indirect Channels

8. Multiple Delivery Models

9. Choose Your Service – the Cloud Ecosystem

10. Recognition: Magic Quadrant for Contact Center
Infrastructure, Gartner, Inc., May 22, 2014

11. Cloud trends and realities

12. Key reasons for adopting cloud
31%
30%
28%
28%
Source: Frost & Sullivan
16%
15%
15%
11%
16%
25%
30%
35%
Capital budget constraints
Growth of data storage…
Slow/poor performance of…
Keeping up with new technology
High maintenance costs
Aging, inefficient infrastructure
Increasing availability of apps
Managing mult data center…
0% 5% 10%15%20%25%30%35%40%
Delivering apps to remote users
Administrative complexity
Lack of infrastructure flexibility
Scalability of dynamic applications
Source: 2013 Frost & Sullivan Cloud User
Survey

13. Frost & Sullivan…
Source: Frost & Sullivan
Motivators
• Potential cost savings owing to
lower TCO
• Attractiveness of OpEx vs CapEx
• Access to latest technologies
• Multi-site/remote agent
provisioning
Trends
• Outsourcing
• Multi-sourcing
• Remote agents
• IP Migration
• SME and downstream markets
Restraints
• High investment in on-premise
solutions
• Network security concerns
• Perceived lack of control over
operations
• Unfamiliarity or poor
experience with hosted
solutions

14. Market Overview—Adoption and
Familiarity Trends
Source: Frost & Sullivan analysis
Cloud Computing Market: Enterprise Cloud Deployment
Types, South Africa, 2013
12.0%
63.0%
25.0%
Public Private Hybrid
Cloud Computing Market: SME Cloud Deployment Types,
South Africa, 2013
23.0%
31.0%
23.0%
23.0%
Public Private Hybrid Community

15. Still room for growth
Cloud Computing and Hosted Contact Centre
Markets: Market Cycle (US, EU and SA), 2013
Sources: WIPO, Frost & Sullivan
Time
Development Growth Maturity Decline
Market Value
US, 2013: Just
15% of US
businesses are
using public
cloud
Global cloud
service market,
2013: $133 billion
Enterprise cloud
market growing
at 30% CAGR for
next 5 years
AWS, 2013: 66%
of US public
cloud market
volumes
EU
SA
Cloud

16. Introducing cloud-based contact centres
Cloud Contact Centre Market: Market Cycle
(South Africa), 2011
Time
Development Growth Maturity Decline
Source: Frost & Sullivan
Defining a Cloud-based Contact Centre
Market Value
Cloud-based
contact centre
“A network-based service in
which a service provider owns
and operates a contact centre
technology platform, and
leases its services and
features to end-users for a
monthly or usage-based fee.”
• It therefore retains all defining
characteristics of cloud
computing such as:
‒ Shared resources
‒ Flexibility
‒ Scalability
‒ Pay as you go/Metered/On
demand

17. The Growth of the SA CC Market
Source: Frost & Sullivan
100%
80%
60%
40%
20%
0%
Cloud Contact Centre Market: Adoption Rate
(South Africa), 2011 and 2016
2011 2016
Hosted Premise
Growth in the hosted market will be driven by a combination of switching and new customers. Solution
providers will likely experience some cannibalisation of their on-premise revenues.

18. 2013 Product Leadership in South African
Hosted Contact Centre Market
• Leveraged global pedigree
• Range of product functionality
• Innovative solutions e.g.
‘Local control’ hybrid model
o Bandwidth optimisation
• Cost control - TCO
• Easy integration and flexibility
• Seamless migration

19. EMEA Cloud Customers

20. Customer video: Voxpro

21. Pro’s & Con’s & Considerations

22. You Need Trust when migrating services
to the Cloud
Service that is
secure and
reliable
Partner that is
experienced and
proven

23. Capabilities

24. Interactive Intelligence Cloud Growth
Number of customers
2006 1 Customer
2007 2 Customer
2008 4 Customers
2009 12 Customers
2010 34 Customers
2012 86 Customers
2013 140 Customers
2014 Q1 160 Customers
Seats by Region
US - 14500
UK - 3200
DACH - 1350
Benelux - 1120
Iberia - 380
France - 850
Nordics - 260
E. Europe - 560
Italy - 180
Switzerland - 230
South Africa - 450
JANZ - 2250
Japan - 1200
LATAM - 950
Cloud now represents over 75% of
annual Business.
85% of all EMEA orders are Cloud

25. High level cloud drivers
Increased flexibility
Faster deployment time
Lower initial capital investment
Reduced IT requirements
Tactical Strategic

26. Strategic Alignment
Business Strategy
Vision/goals/identity
Products/services
Customers/target markets
Competitive position
Drives
Supports
Contact Center Strategy
CC positioning and value
Processes, Organization
Media, Metrics
Drives
Enables
Technology Strategy
What technology when
Benefits
Architecture, Integration

27. Why should I make the switch to the cloud?
Questions for the business
• Are you looking for new ways to gain the
customer service advantage in your market?
• Are there additional services, options you’d like to
offer customers?
• Is there a need to deploy new technology and
capabilities rapidly?
•Would it help to have more direct control over
your environment?

28. Why should I make the switch to the cloud?
Questions for IT
• Is it hard to meet the needs of the business with
the resources and expertise you have in-house?
• Do you have a limited capital budget?
• Has the job of keeping servers and applications
up-to-date and running demanded too much of
your time versus adding new capabilities?
•Would you prefer to empower the business to
make more changes, modifications on their own?

29. Why should I make the switch to the cloud?
Possible Timing Considerations
• Direction given with strategic imperatives
• Adding a new centre (group), location
• System nearing end of life
• System fully depreciates
• Upgrade event
• End of maintenance contract

30. Why should I make the switch to the cloud?
Versus: Costs to consider when maintaining in-house
systems
• IT Staffing Costs
• System Integration (staffing & development)
• Data Centre costs
• Security (Staffing & Equipment)
• Power
• Ongoing Support/Maintenance costs
• Telco costs

31. Reasons not to go to the cloud
• Quality of service: Support and Bandwidth
• The service provider may not be as responsive as an in-house
team, and it may take days to make simple changes
• The hosting vendor may not have the depth of technology expertise
needed to “push the technology envelope” into the new value-added
areas required to maintain a competitive service advantage
• The client depends on the vendor to implement new features as
needed
• Hosting vendor may not be willing to support unique requirements
• It may be challenging to integrate the hosted solution into the
existing operating environment
• Data security and back-up are no longer under the client
enterprise’s direct control

32. Concerns….

33. Security certifications

34. Reliability

35. Financials
Cloud Costs to consider
• Set-up fees
oMay be rolled into monthly fees
•Monthly fees based on
oType of Service
oNumber of users
oAdd-on applications, components
oSupport level
oLength of contract
oNetwork services
• In-house technical resources (incl. training)

36. Financials
In-house cost to compare
• Maintenance fees
• Upgrade costs (if applicable)
• New applications, capabilities
• Support of dependent platforms
• Network services
• In-house technical resources (incl. training)
• Internal data center costs
• Additional security, resiliency and disaster
recovery (if applicable)

37. Financials

38. Multiple paths to the cloud

39. Hybrid deployment

40. Case Studies

41. 2014 Cloud Customers signed

42. T–Mobile Leading Mobile Operator
Drivers for Change
Wanted to replace their mixture of Avaya/Aspect/Genesys
Netherlands
Solution Chosen
CaaS Private Cloud 4.0 – Multimedia ACD, Recorder,
Feedback, Dialer, Hosted Voxeo Speech Reco
Benefits Realized
Two separate country entities can share the same system
Retained all existing functionality and added much more
Savings of €40k per MONTH

43. ASML - Dutch Provider of Calibration equipment to
95% of global semiconductor manufacturers
Drivers for Change
•Needed to reduce wait times for customers waiting for an engineer
•Lack of ACD meant customers would be ping-ponged through different
departments
Solution Chosen
•CaaS 4.0 – 200 phone only agents
Benefits Realized
•Engineers are now part of the call center
•Calls are routed to the best qualified engineer reducing wait times
System Replaced – Siemens

44. Dekatel - Dutch Telco Provider
Drivers for Change
•Existing Avaya solution End of Life
•Not happy with functionality
Solution Chosen
•CaaS 4.0 – 33 agents with Multimedia
•Back office users also on platform
Benefits Realized
•Contact Center and Backoffice in one solution
•Enabled dynamic call routing strategies unavailable on Avaya
System Replaced – Avaya Competitors Faced – Avaya, Vocalcom

45. Lilly
• Overview
o 10th Largest pharma company worldwide, $23B in Revenue, #115 on F500
• Initial Size
o 100 seats contact center, 5 shared service centers (Indianapolis USA, Cork
Ireland, KL Malaysia, Brazil and Japan).
o Applications include multichannel ACD, Fax, Recorder (voice), WFM
o Using Cisco gateways and Cisco phones
o Future seats – 1000+ seats contact center, 20 other contact centers
• Replaced
o Premise-based system and AT&T managed network
• Drivers
o Corporate mandate to move technology to the cloud
o Cloud contact center direct from the manufacturer
o Scalability at multi-locations
o Manage the call center, not the call center technology

46. • Overview
o One of world’s largest floor covering companies/part of Berkshire Hathaway
o Approximately $4B in annual revenue
o Approximately 25,000 employees
• Initial Size
o 550 seats, Five year commitment at 2 locations
o Applications include multichannel ACD, recorder (voice & screen), knowledge
management, customer satisfaction surveys, and WFM
• Replaced
o Nortel on-premise solution
• Drivers
o Speed of deployment
o Open platform – greater ability to customize
o Solid integration to Salesforce.com
o Ability to migrate to premise if desired

47. • Overview
o Largest distributor of cell phones globally
o 4,000 employees, 40 global locations
• Initial Size
o 250 contact center seats, 2,000 seats IPPBX/UC, 26 of 40 locations, 5 year
contract
o Applications include IP-PBX/UC, voicemail/UM, multichannel ACD,
recorder (voice), WFM
• Replaced:
o You name it, they had it (via several acquisitions)
• Drivers:
o Reduced capital expense requirements
o Flexibility to add/reduce users as they enter new countries
o Open platform – greater ability to customize
o Competitor’s pilot failed (a telco)

48. Great resources

49. Thank you!
Pani Harito, Territory Manager – South Africa
Panajotis.harito@inin.com