Frank CicconeOctober 08, 2019

Your Next Move to the Future: Why Subscription May Make Sense for Your Business

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In a recent study from ZK Research, organizations listed the top drivers of their digital transformation initiatives as enhancing customer service (63%), improving employee efficiency (58%) and streamlining operations (48%). Unified communications (UC) and contact center are at the heart of these initiatives.

The contact center is the core of human connection where customers expect seamless, natural and intuitive service experiences. UC enables workers to do so by quickly collaborating and making the best possible decisions in the shortest amount of time, regardless of where the people involved are located. Yet the proliferation of cloud-enabled technologies like Artificial Intelligence (AI), automation and omnichannel has created a crossroads for some premises-based enterprises operating under a perpetual license model. Should they consider moving to a subscription model for their on-premises communications infrastructure?

For many organizations, moving to a subscription model is a logical next step in their journey to the cloud or to accelerate their overall business transformation. But that doesn’t necessarily make this the best move for everyone.

Why Subscription May Make Sense

Many enterprises aren’t yet ready to move their communications systems completely to the cloud, but they would still like the benefits of paying only for the services they use and the flexibility to adapt as needed. And there’s truly no good reason for a radical move to be made. In today’s smart, digital world, there’s no “be-all, end-all” cloud solution. The world is neither premise nor cloud, and that makes the on-premise, hybrid cloud model a critical consideration for many enterprises. In fact, ZK Research predicts that 80% of future contact center deployments will be either private cloud or hybrid cloud and on-premises solutions.

A subscription model helps enterprise lower business risk, increase operational agility, streamline budgeting and purchasing processes, and gain flexibility when adding new services and users. The model enables enterprises to shift from Capex to Opex; the former being higher investment and risk and the latter being lower risk with faster time-to-value.

From a budgeting standpoint, new research from Nemertes shows that 69% of successful companies plan to increase their AI budget in 2020 and that adoption of omnichannel (which has been proven to drive 104% customer ratings increase) is expected to grow from 31% in 2019 to 49% in 2020. For some enterprises, a subscription model can provide the operational and financial flexibility needed to get on board with these kinds of technologies. Research from Vanson Bourne, for example, shows that lack of funding is a key barrier to AI adoption for 42% of organizations.

All in all, you should consider a subscription model for your on-premises communications systems if you want to:

  • Scale consumption of contact center and UC solutions based on their unique needs
  • Avoid the hassles of software and support licensing and contract renewals, instead focusing on growing your business with a comprehensive package offering monthly or annual subscription payments
  • Enjoy cost certainty: one price for software, support and upgrades
  • Reduce costs: no large capital outlays with operational funding made more easily available
  • Streamline and optimize the purchasing process
  • Enjoy certain perks and discounts, depending on the provider

Evaluating Subscription Services on the Market

If you’re looking to make the transition, keep in mind that not all subscription services are alike. We can’t speak for others, but our new Avaya IX Subscription for on-premises customers with support for Avaya Aura get the following:  

  • Rights to upgrade to the newest release of Aura
  • Up to 20% expansion allowance at no extra charge
  • The possibility of a limited free IX subscription with the surrender of current licenses  
  • Access to Avaya IX Spaces, our powerful cloud-based platform for team collaboration and meetings
  • A truly simple and cost-efficient path to cloud and next-gen tech

Learn more about our trade-in and upgrade offers for existing customers to protect and extend their current investments in communications infrastructure.

Avaya IX Subscription

Frank Ciccone

Frank is the Senior Vice President of U.S. Sales at Avaya. Frank succeeds at creating value for his customers by understanding the business outcomes his clients need to achieve and applying technology solutions to help them reach those goals. Frank lives in Scarsdale, NY with his wife and three sons.

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