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January 22, 2024
There is a lot of money to be made in a cloud migration journey, according to researchers at Grand View Research, who found that the global cloud migration services market in 2022 reached $11.7 billion. That figure, they added, will have a compound annual growth rate (CAGR) of 26% from 2023-2030.
Factors like COVID-19 influenced the number of firms migrating previously on-premises solutions to the cloud, or at least to a hybrid solution. That number skyrocketed during the pandemic, with a survey produced by Flexera finding some 27% of leaders said they had a significant increase in cloud spending because of COVID-19.
Some reports suggest as many as 70% of companies have shifted their critical services like communications to the cloud, while others, like Gartner, anticipate that number reaching some 85% of enterprises adopting a cloud-first approach by next year.
Partners are playing a pivotal role in ensuring the cloud migration journey goes smoothly, Brett Weigl, senior vice president of digital, artificial intelligence (AI) and journey analytics at contact-center-as-a-service provider Genesys told Channel Futures.
The other half of the equation comes from AI enhancing contact center agent efficiency, extending more self-service options, and optimizing workforce investments, Weigl shared. And partners can make money from AI, noted Weigl, who believes that will come from adjacent and ongoing management services.
The tool can help organizations migrate to the cloud to forecast, schedule and optimize resources, Weigl added.
Whether you're a reseller or a systems integrator, Weigl says many partners in the contact center space historically have a hefty amount of telecommunications experience.
Genesys' Brett Weigl
"They are not AI experts, but they want to bring a differentiated offering to market," said Weigl. "It's no longer butts in seat anymore. The concern is, 'how can you help me automate?'" Weigl conveyed.
He noted that moving to cloud-based infrastructure can also lessen IT infrastructure and support costs by up to 70%.
This is something Weigl says his company helped Stanley Steemer pull off. It helped it migrate from dated technology to the cloud in one year, achieving the above results in the process.
With more than 200% growth of Genesys' native AI features, Weigl told Channel Futures it appears customers are modernizing their tech stacks at a record pace.
"It's difficult to do AI on-prem," he said.
And while over-the-top services are available, they are not as user-friendly in many circumstances; hence, the push to get outdated firms to the cloud.
These over-the-top services could benefit some channel partners — those who have yet to change how they do things, meaning they have a customer base who, for one reason or another, must operate on-prem, like those in cybersecurity, tech, life sciences and design/engineering spaces.
They often require on-prem technology and can also benefit from a hybrid situation with AI. Some can't justify migrating fully to the cloud because of legacy investments or legislation that dictates otherwise.
In the end, however, the trend is toward cloud, argues Weigl. There is the potential for colossal revenue for channel partners in CCaaS with customer experience playing a prominent function too, as AI is likely what will help contact centers achieve higher customer satisfaction scores.
Genesys is further betting on its software winning the day for partners and the fact that it can differentiate even more via the recent acquisition of Radarr Technologies, a company it hopes will help take it to the next level of customer experience.
Contributing Editor, Channel Futures
Moshe has nearly a decade of expertise reporting on enterprise technology. Within that world, he covers breaking news, artificial intelligence, contact center, unified communications, collaboration, cloud adoption (digital transformation), user/customer experience, hardware/software, etc.
As a contributing editor at Channel Futures, Moshe covers unified communications/collaboration from a channel angle. He formerly served as senior editor at GetVoIP News and as a tech reporter at UC/CX Today.
Moshe also has contributed to Unleash, Workspace-Connect, Paste Magazine, Claims Magazine, Property Casualty 360, the Independent, Gizmodo UK, and ‘CBD Intel.’ In addition to reporting, he spends time DJing electronic music and playing the violin. He resides in Mexico.
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