The Top 12 Reasons to Invest in the Cloud Today

Many authors, including myself, have written about the benefits of the cloud in its many forms, yet there have been very few detailed case studies on the hard benefits and savings we expect. Given the dearth of hard evidence, I felt many would benefit from the results of a recent private cloud study by Forrester.

Forrester Research performed one of its forward thinking Total Economic Impact™ (TEI) studies on the potential return on investment (ROI) enterprises might realize by leveraging a private/hybrid cloud model, versus a traditional CAPEX communications solution approach.

Forrester took a look at how cloud services for unified communications and contact centers are benefiting five companies. They interviewed companies that had outdated legacy communications environments that included different types of solutions.

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In several cases, the companies had solutions managed by disparate third parties providing inconsistent service experiences. Costs were increasing. All of the subject companies had a goal of reducing capital expenditures while transforming and evolving their communications environment. The five companies consisted of the following:

  • A global telecommunications company with operations in 20 countries
  • A U.S.-based medical and research organization that started with 1,500 users and grew to 4,000 users
  • A UK-based insurance company with a multivendor contact center and UC solution serving more than 10,000 users
  • A U.S.-based provider of electronic design automation and semiconductor solutions with a solution covering 6,500 endpoints in more than 50 offices across the globe.
  • A diversified technology company with operations in more than 150 countries, which requires dedicated on-site support for their multivendor UC and CC environment.

Based on interviews with executives at the five companies, Forrester used a composite representative company model to define the benefits they saw from a private cloud solution. Their results showed a total ROI of 42 percent in capital expenses for data center and telephony costs, improved contact center productivity, and simplified transformation to new communications technology.

How? According to Forrester’s research, there are 12 benefits that the composite organization saw from a private cloud deployment. Of the 12 benefits, five were quantifiable and generated an estimated 42 percent ROI (based on an average savings over five years) of $6,493,000, or about $12,987 per employee (500 employees).

The five key measurable benefits:

  • Handle customer interactions more efficiently by helping to ensure that the right resources are readily available to customers. Through an interwoven, interoperable unified contact center and workforce optimization solution, enterprise goals, contact center targets, and customer objectives can be aligned and linked together.
  • Intelligent routing and resource selection features allow systems to be configured to determine if customers should be served by the least-busy agent, the first-available agent, or the agent with skills that best match the customer’s needs.
  • Internet-based text chat sessions with contact center agents improved agent productivity, as do self-service online customer service.
  • Reduced capital expenditures for telephone devices per user/per month fees moved unified communications and contact center expenditures from initial CAPEX to longer-term operations expenses.
  • Infrastructure cost avoidance savings included server and data networking hardware, software, and maintenance; network monitoring tools; primary rate interface (PRI) and analog trunk lines; interactive voice response (IVR) software and maintenance, contact center databases and maintenance; and associated power and cooling. Also included were the IT manpower savings associated with no longer managing the legacy multivendor, multi-location infrastructure, and allowing IT staff to focus on more strategic business initiatives.

In addition, executives at the interviewed companies identified the following seven benefits to using private cloud that were not as easily measurable:

  • Using the cloud and a set of enterprise communications services that are based on and aligned with the industry-adopted tools of the internationally recognized Information Technology Infrastructure Library (ITIL) elements, customers can start with a baseline level of service management and then add extra elements as needed.
  • Increased utilization of legacy technology assets meant avoiding the need to purchase new assets.
  • Rising customer satisfaction scores were made possible by a number of factors, and were a strong driver for implementation.
  • Customer service representatives can work in the office or from home using the same agent desktop interface. With a home agent program, organizations can recruit the best agents from a larger external talent pool.
  • Acceleration of business transformation and increased agility.
  • Increased focus of resources on core business outcomes such as improving customers’ experience and employee productivity, rather than day-to-day operational tasks.
  • Establishment of a global standardized support structure.

What do you think? How has the cloud improved your businesses? What are your documented savings?

Follow me on Twitter at @pat_patterson_v

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Avaya Predictions for 2017 Services Trends: Top Focus is on Smart Customer-Centric Engagement

Recently, we asked six Avaya services experts to help us reflect on the past year and to peer ahead into 2017. Our panel:

  • Richard English, Managing Director, Avaya Professional Services
  • Camille Lewis, Product Management Director, Avaya Client Services
  • Barbara Sidari, Customer Engagement and Executive Cadence, Avaya Client Services
  • Thomas Brennan, Vice President of global support services, private cloud and managed services delivery
  • Michael Sale, Director Online Engagement, Avaya Client Services
  • Dan Pratt, Senior Director, Business Transformation and Strategy, Avaya Client Services

According to our six experts, our predictions for these 2016 trends proved to be spot on—and they will continue to be a force in 2017:

  • Use of hybrid/private cloud

    will continue to dominate for large enterprises until public cloud providers can demonstrate that compliance to privacy/security regulations such as HIPAA can be achieved. However, Public Cloud is quickly becoming a flexible and effective delivery model for the midmarket.

  • A flexible delivery model

    to achieve growth in modular steps that helps IT maximize ROI and support rapid business scaling has been, and will continue to be, extremely successful. Taking some of the burden off the enterprise enables IT managers to focus on more strategic corporate initiatives.

  • The need for person-to-person human touch

    will continue to rise. It will become critical in 2017 as unassisted support and self-healing systems grow smarter in identifying trends and problems before they happen and engage in machine-to-machine maintenance for resolution. The use of video will be more widely used, providing personalization and higher customer satisfaction.

The panel thinks that 2017 will mean an increasing focus on smart customer centric engagement when it comes to service. In 2017, it’s all about using analytics and even smarter technology to increase customer satisfaction (CSAT) scores, loyalty and revenue—and to achieve a better return on investment.

The Avaya panel sees these three trends emerging in 2017:

  • Transforming legacy systems and increased customer use of omnichannel will streamline the customer journey to increase customer satisfaction, loyalty and revenue.

    For example, many retailers will transform their Contact Centers into profit centers. The shopping experience for their customers starts on the mobile device or web-based applications—retailers want it to end with an order placed. The customer will experience a seamless transition from mobile to voice (or to web chat or video) without having to repeat who they are and what they want to purchase. The agent will already know the value of the customer to their company and will provide a personalized shopping experience.

  • Analytics, Internet of Things (IoT), and big data will enhance the experience of the Customer Journey.

    The predictive and preemptive active workflow will match people to people, machine to machine, as preferred by the customer for maximum satisfaction and profit. For instance, service vendors will use data captured from customer service requests, alarms, outage history, and project volume to identify risks and take appropriate actions to proactively mitigate issues. Utility companies can leverage web-based applications to proactively communicate to customers the status of affected service areas via maps on smart phones, reducing the burden of customers calling the service center to report an outage. Similarly alarm companies will analyze alarms and preemptively fix them before the consumer arrives home.

  • Demand for holistic application service management will grow as siloed and disparate cloud applications shift focus from managing assets in the field to delivering on business processes.

    Enterprises will need a dashboard that provides a single pane view by business process vs CPU performance. The workforce needs to be trained to leverage all the data in a way that includes human touch.

The year 2017 promises to be very exciting as service transforms and demonstrates its value by preemptively fixing issues before they become problems. It is imperative that knowing the customer and providing what they want, as well as the human touch, will become ever more critical in a big data world. After all, it’s all about the customer experience!

What do you see emerging in 2017? Drop me a note at sithomso@avaya.com

Avaya Aura® Platform—The Original Pragmatic Hybrid Cloud

In a recent InfoWorld post David Linthicum wrote of “an organic movement driven by rank-and-file enterprise IT people who simply want to solve their issues using the best technology and approach.” Linthicum called this the “pragmatic hybrid cloud.” Reading this from the perspective of someone with decades of experience in the enterprise communications market, my immediate reactions was, “Aha, he’s talking about the Avaya Aura® Platform.” He isn’t, but here I’ll explain why this thought struck me.

Linthicum writes, “What this movement has discovered is that you can combine the public cloud and modernize some of your legacy systems to be more cloudlike.” That is exactly what Avaya customers have been achieving in an evolutionary process spanning almost two decades. Long before the term cloud came into vogue, Avaya customers have been able to gain the benefits of the cloud paradigm while avoiding the need to comprehensively lift workloads to a public cloud provider and the need to wholesale forklift and abandon existing investments.

Today, many Avaya customers—including a large swath of the globe’s most notable organizations in industries ranging from financial services, to healthcare, to government, and many small and medium businesses—process their mission-critical workloads using a combination of premise-based solutions and both public and private cloud-served applications. It is a “pragmatic hybrid” approach that since the mid-2000s has provided these Avaya customers with unparalleled reliability, cost savings, and business agility.

The Avaya Aura Platform is the reason why. Avaya Aura had its genesis in a time tested methodology for allowing geographically distributed organizations to link islands of resources to gain economies of scale. Back in the day, to create either a contact center that followed the sun or a single enterprise communications solution that served the needs of a worldwide workface, expensive dedicated circuits were required. As IP Telephony evolved, companies began to use packet-switched technologies to more cost-effectively link together distant resources into single holistic systems. Rather than centralized in isolated locations, communications applications could now be seamlessly and cost-effectively shared across distances. This made new ways to organize communication assets and the work that depended upon those resources possible.

Avaya’s great insight was to take advantage of the session initiation protocol (SIP). Over time Avaya’s customers have “pragmatically” converted the networking connections of their existing standalone investments to create fabrics of SIP internetworked appliances. The Avaya Aura® Session Manager lets companies treat their owned assets as part of a private cloud and combine those resources with public cloud capabilities both from Avaya and from a growing ecosystem of additional providers. It is a strategy that has resulted in significant cost savings while unleashing new innovation.

Today the Avaya Aura Platform has moved far beyond simply a “pragmatic hybrid” for sharing resources. It has become a strategic tool for many organizations. It gives companies a flexibility and agility to adapt and reconfigure at the speed of business. Avaya Aura has also opened the doors to both internal Avaya inventions and new external development.

Avaya Breeze™ Platform is but the latest application development platform that takes advantage of Avaya Aura. Avaya, Avaya’s customers, and an industry of third-party companies are leveraging Breeze with their own creativity for solving business problems. Breeze allows the creation of unique ways to leverage the inherent capabilities of Avaya products in combination with cloud and third-party capabilities. Whether those assets reside in a private data center, on premises-based servers, or in public clouds, because of the Avaya Aura Platform, the only barriers to progress are the limits of human ingenuity.

Linthicum concluded that, the “pragmatic approach is very sensible. It makes the most of what you have, reducing the need for new resources and letting you transition to the cloud at a pace you can handle, both in terms of cost and time.” Your Path, Your Pace, Your Choice, where have I heard that before? Avaya circa 2004 maybe? Nice to see the industry finally following Avaya’s lead.

 

Smarter Cloud Networking is Here, and it Starts with Avaya

The rise of digital transformation, along with growing application and data center needs, has placed more security demands on enterprise networks than ever. So much so that half of CEOs believe their industry is going to become “substantially or unrecognizably transformed by digital.”

These dynamic changes are significant for IT managers, as they are responsible for expertly managing today’s increasingly complex networks. IT resources are entrusted with one critical job: find a way to securely and reliably deploy wired and wireless networks with complete control and visibility—anytime, anywhere.

This of course isn’t as easy as it sounds, especially for companies that lack the necessary IT resources or budget. In fact, “budget and resource constraints” was listed as one of eight top challenges cited by IT professionals in a global survey last year. The average company spent $400,000 on networking equipment in 2014—a number that increased by nearly 20% in 2015.

Here’s the good news: cloud managed networking has emerged as an affordable and efficient network management alternative for many companies. There are a large number of advantages to leveraging a managed cloud solution. First, the technology is easier to operate than an on-premises platform, accelerating time to deployment. The technology also requires virtually no in-house maintenance, which frees up internal teams to handle other high-priority tasks while drastically lowering the risk of manual, error-prone, on-premises deployment work. Perhaps best of all, managed cloud solutions enable businesses to optimize their expenses and reduce costs.

For IT managers, cloud networking translates into reduced day-to-day maintenance tasks (i.e., software upgrades, patches) and improved operational agility—all at a fraction of the cost of traditional solutions. Businesses understand these benefits; in fact, it’s expected that by 2020, 90% of IT industry growth will be fueled by third-party managed technologies.

There’s only one problem: cloud solutions of the past will never effectively meet today’s next-generation networking needs. Businesses require a managed cloud solution that explicitly addresses today’s core IT issues of reliability and security; a solution that enables them to not just survive, but thrive in today’s smart, digital world. That’s exactly why Avaya is announcing its all-new Cloud Networking Platform Solution.

Our advanced solution for large enterprises and medium-sized businesses is inherently built to address security and reliability head on, with a strong underlying focus on simplicity and ease of use. Here’s how businesses will uniquely benefit:

  • Deploy wired and wireless networks with minimal resources:

    Users can seamlessly centralize network management, visibility and control without the complexity of controller appliances or overlay management software. That means hardware (like switches and access points) that are installed on premises can be easily configured and managed in the cloud.

  • Add, change or modify network services on the fly

    : The agile nature of our solution allows IT managers to easily add, change or modify their network services via an easy-to-use dashboard, enabling them to meet their business needs as they inevitably grow and change. For example, zero-touch activation enables managers to automate software upgrades, patches and licenses in order to relieve maintenance burdens. The solution also boasts built-in guest and BYOD on-boarding.

  • Guarantee data isolation among cloud tenants with true multi-tenancy:

    This key security component of our solution guarantees that user traffic will always remain on your firewall-protected LAN. This way, cloud connectivity is only required for out of band management functionality. Meanwhile, standards-based encryption prevents visibility of communications between a customer site and the cloud.

  • Guarantee service availability with data center redundancy and data replication:

    Avaya’s solution helps ensure wireless access points act autonomously, even when the cloud connection is lost. Furthermore, the technology enables high availability by always processing traffic locally and providing security directly at the network edge in each access point.

As companies face insurmountable pressure to reduce IT resources and budgets, it’s clear that the market needs a smarter networking solution. Our new Cloud Networking Platform Solution allows businesses to enjoy the native benefits of the cloud that they have come to know and love, with the critical level of networking reliability and security they has been lacking—until now.

Learn more at our webinar “Debunking the Myths of Cloud Management” on October 26 at 10 am PST. Sign up now.