Customers are increasingly looking for providers that can offer a comprehensive suite of UC and contact center capabilities, not just individual products.
There is a growing need for providers to deliver not just the technology but also the professional services, managed services, and support to help customers implement and maximize the solutions. Providers are consolidating to meet this demand – notably with CallTower’s recent acquisition of Inoria.
This move has allowed CallTower to expand its contact center capabilities and offer a more integrated solution to customers. Other major players like Genesys, 8×8, and Cisco are also involved in consolidation activities to build out their UC and contact center portfolios.
In this article, we explore how UC/CX synergy can be increased dramatically if both solutions are housed by the same provider – saving time, IT workload and even billing issues.
The Drivers of Consolidation
The factors driving this move to consolidation include:
1. Increasing Customer Demand for Integrated UC and Contact Center Solutions
Customers are increasingly demanding integrated UC and contact center solutions, including not just the products/licenses but also the professional services, managed services, and support to implement and manage the solutions.
2. Need for Comprehensive Professional Services, Managed Services, and Support
There is a move to provide a more personalized, consultative approach to customers rather than just selling licenses. Customers want a partner that can help them understand their needs and design solutions for their current and future requirements.
William Rubio, CRO at CallTower, notes that the goal is to be a “partner” to the customer, helping them not just solve immediate problems but also understand their future needs and design solutions accordingly. This requires a more consultative, service-oriented approach.
3. Desire to Deliver Deeper Customer Insights and Business Outcomes
Customers are always looking for feature-rich platforms but don’t know how to implement them effectively. It is vendors’ responsibility to work with our customers to implement the features to drive the business outcomes they need to increase business efficiency and productivity for their organization.
4. Importance of AI-powered Capabilities
The increasing importance of AI and the need for providers to offer AI-powered capabilities. Customers are demanding AI but often don’t know how to effectively implement it, so providers need to guide them through the process.
5. Expansion of Vertical Expertise
The opportunity exists for smaller, more specialized players to carve out niches in vertical markets, even as larger consolidation happens among the major providers. Vertical expertise can be valuable.
Benefits of Consolidation for Customers
The key benefits are improved pricing, service, simplicity, customer intimacy, and future readiness – all of which can drive better business outcomes for the customer.
Pricing: CallTower’s Rubio notes that, while there are some concerns about pricing becoming stagnant with consolidation, he hasn’t heard customers complaining about pricing if they see value and business outcomes being delivered.
Service quality: The consolidation allows providers like CallTower to offer a more comprehensive, integrated suite of services, including professional services, managed services, and ongoing support. This can improve the overall service quality for customers.
Vendor simplification: By having fewer, more integrated vendors, customers can reduce vendor management overhead and have a simpler, more streamlined technology stack.
Deeper customer understanding: The more consultative, services-oriented approach that consolidated providers are taking allows them to develop a deeper understanding of the customer’s business needs and challenges. This can lead to more tailored, impactful solutions.
Future-proofing: Consolidated providers are better positioned to invest in emerging technologies like AI and stay ahead of the curve – ensuring customers’ long-term needs are met.
How Consolidation Impacts AI Strategies
Customers are increasingly interested in AI implementation but face challenges in deploying it effectively.
William Rubio notes that many customers are simply demanding ‘AI’ without a clear understanding of how to effectively implement and utilize it. Consolidated providers can offer guidance, consulting, and expertise to help customers identify the right AI use cases and deploy AI solutions in a strategic, impactful way.
Rather than overwhelming customers with a broad AI strategy, William suggested taking a more incremental, targeted approach. Start with simple AI automation use cases that can deliver quick wins and build momentum, rather than trying to tackle too much at once.
The focus should also be on the business outcomes rather than the ‘nice to haves’. AI can drive tangible business outcomes for the customer, whether that’s increased productivity, cost savings, or revenue growth. Providers need to demonstrate the financial and operational benefits of AI, not just the technology itself.
The consolidation of the UC and contact center industries, exemplified by moves like CallTower’s acquisition of Inoria, is reshaping the landscape to meet evolving customer expectations. As Rubio concludes, CallTower and Inoria are now “working closely together, with the goal of providing a more personalized, consultative approach to customers that goes beyond just selling licenses.”
By integrating comprehensive suites of technology with professional services, managed support, and AI-powered capabilities, providers are not only simplifying vendor management and improving service quality but also positioning themselves as true partners in their customers’ success. This synergy drives innovation, enhances customer experience, and delivers tangible business outcomes – such as cost savings, productivity gains, and future readiness – that go beyond the limitations of standalone solutions.
