skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Ovum view

Summary

Contact centers have been making a steady transition from premise-based call routing platforms to more flexible cloud-based tools. Although we are still early in the replacement and upgrade cycle, many legacy vendors on the premise side have struggled to develop migration strategies for their customers and road maps for their own technology development. Aspect, which has wrestled with the problem of protecting its legacy investments, reached a turning point in 2015. Its investments in cloud solution providers, particularly Voxeo, have provided a clear path to growth in 2016 and beyond.

Cloud is rivaling premise in the sales pipeline

In a recent analyst briefing, Aspect indicated that its sales pipeline had grown significantly in the second half of 2015. According to the company, roughly 42% of its January 2016 pipeline represented potential bookings from its cloud products, compared to 33% the previous year.

A similar shift can be seen in the company’s revenue performance over the last year. For the first time, bookings from cloud were larger than bookings from core premise platforms in FY15. Although premise remains a significant chunk of Aspect’s business (and will likely continue to be for some time), the current trend lines suggest that the company has found a way to balance legacy upgrades with cloud migration, something that has been difficult for some of its competitors.

The company indicated that it had multiple deals worth in excess of $1m in 2015. Of those large contracts, half were based on the company’s extensive Unified IP platform for multichannel interaction management. Many of the large deals were based on (or included) Aspect’s workforce management software solutions, indicating continued market strength in advanced optimization tools.

The company’s executives signaled continued emphasis on transitioning into a high-end/large market cloud provider in 2016. They argue that the way buyers perceive the cloud is changing from “good enough” into a legitimate, mission-critical enterprise solution that can be safely adopted by even risk-averse businesses.

The company hinted that one of its strategic goals in the coming year will be to simplify the solution choices it makes available. This will be central to the argument that cloud makes sense at the highest levels; Aspect will aim to roll together frequently used applications into coherent suites that can be easily compared side-by-side with premise offerings. Ovum expects workforce management to be a key driver in moving applications to the cloud.

Overall, this seems to be a positive time for Aspect. In discussions over the last two to three years, the company has repeatedly indicated to analysts that it needed time – and industry patience – to come to grips with a shifting technology environment and reconfigure its offerings to meet new buyer criteria. It appears that the time and acquisition resources were well spent.

Appendix

Further reading

SWOT Assessment: Aspect Hosted and Zipwire, IT0020-000147 (August 2015)

Aspect revitalizes its services with workforce optimization and cloud enhancements,” IT0020-000090 (February 2015)

Author

Keith Dawson, Principal Analyst, Customer Engagement

keith.dawson@ovum.com

Recommended Articles

  • Service Provider Markets, Consumer & Entertainment Services,...

    MWC 2018 Highlights

    By Ronan De Renesse 27 Feb 2018

    Over 20 of our senior Ovum analysts and consultants attended this year’s Mobile World Congress in Barcelona at the end of February. In between meetings, briefings and presentations, our analyst team were blogging and tweeting about key developments, trends and rumors. Have a look through our daily MWC 2018 Highlights to find out what happened.

    Topics 5G AI IoT Cloud Payments SDN/NFV Smart home

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

  • Enterprise Decision Maker, Enterprise IT Strategy and Select...

    2017 Trends to Watch: Big Data

    By Tony Baer 21 Nov 2016

    The breakout use case for big data will be fast data. The Internet of Things (IoT) is increasing the urgency for enterprises to embrace real-time streaming analytics, as use cases from mobile devices and sensors become compelling to a wide range of industry sectors.

    Topics Big data and analytics IoT

;

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

Email us at ClientServices@ovum.com

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at pr@ovum.com

Contact marketing - 
marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now