NICE has revealed that during the last quarter, over 45 “leading brands” have looked to the company to rectify “failed” CCaaS deployments by rival vendors.
During the vendor’s Q3 2024 earnings call, Barak Eilam, CEO of NICE, confirmed that the company is routinely being asked to come in and pick up the pieces when other CCaaS providers have let customers down.
As well as promoting the reliability of NICE CXone, Eilam’s comments hint at considerable CCaaS dissatisfaction from many enterprises.
Indeed, while CCaaS migration is the natural evolution for contact centers – due to its superior ease of innovation, agility, and scalability – it’s not without risks and complications.
Many cloud transformations face challenges such as moving complex workloads, regulatory complications, and budget constraints.
Yet, it’s not just the initial challenges. In the cloud, many businesses will have ambitions to leverage integrations and innovate in areas that don’t align with their current vendor’s roadmap.
Moreover, contact centers are often left to their own devices after the initial deployment. That’s a big problem as CCaaS isn’t something a business installs and leaves. To maximize efficiencies, constant enhancement and ongoing support are necessary.
When vendors are elusive, customers will look for partners who can better meet their evolving requirements – as Eilam’s comments suggest.
Inflexible pricing models, attempts and vendor lock-in, and the opportunity to leverage new forms of AI are amongst other reasons why contact centers are likely switching CCaaS partners.
NICE is an obvious choice, given its deep feature set, global footprint, and favorable positioning in analyst reports – like the Gartner Magic Quadrant and Forrester Wave.
After all, following unfavorable CCaaS experiences, enterprises typically turn to a deep, widely utilized, and well-publicized solution for safety and security.
Indeed, the idea that “nobody ever got fired for selecting NICE” may well play a part in making the decision.
Number Crunching
Away from the news around NICE picking up dissatisfied CCaaS business, the company also posted another quarter of strong results.
During the call, Eilam confirmed that NICE achieved $690 million in Q3 revenue, a 15 percent year-over-year (YoY) increase.
Operating income also grew by 20 percent to $221 million, with the operating margin climbing by 140 basis points to a record 32 percent.
In addition, cloud revenue rose by 24 percent to $500 million, exceeding $2BN in ARR, which the CEO claimed was the “highest cloud growth on the largest cloud revenue base in our industry.
Our scale and superior platform architecture continues to drive outstanding profitability. The number speaks volume.
More News from NICE
Back in October, NICE introduced new features for its CXone Mpower platform to enhance its AI capabilities.
The updated solution now offers automation across the entire customer service journey, allowing businesses to design, build, and manage every aspect of customer interactions for a fully automated, end-to-end experience.