You may be wondering why cloud-based contact center software companies are on the rise in comparison to traditional call center software company models.
Companies that offer Software as a Service (SaaS) operate on a unique hybrid business model, which differs from traditional software company models. The focus has shifted from building a solid product and then trying to get as many people as possible to use it, to creating a product that adapts to the changing needs as its market grows.
These are the three main or common elements of software company business models.
- The API (Application Programming Interface), which is a library of source codes that establish the functions or routines of a specific task or that allow specific software components to interact. Essentially, the API is the point of communication, or an interface, that enables a user to program software to the specifications of their market.
- The software application itself. What are its essential functions? How easy is it to use? What does the dashboard or user interface look like? Software companies need to strike a delicate balance between creating software that is easily accessible and intuitive to users, and software that has a full range of functions to anticipate its practical uses in the market.
- Infrastructure with growth potential. What does the infrastructure enable the company to do as it develops more practical usages? If the infrastructure is too set in place and is not scalable, it may prevent the company from growing and adapting to its target market and their changing needs.
These three elements are the essential parts of any software company business model. However, the way that SaaS companies and traditional software companies prioritize these elements is completely different.
The Set Nature of Tradition
Traditional software companies operated/built software by prioritizing:
1) The application
2) The API/user interface
3) An infrastructure with stability for growth
Traditional software companies often find themselves in a last-minute scramble to scale up once they find success with steps 1 and 2. They may have to drastically change their entire business model over time to keep up with demands. Without a scalable foundation, what worked as a start-up isn’t going to cut it as the company grows and attempts to handle mid-size and even the full-scale demands of a corporation and its respective market.
Expanding in the Cloud
However, the rise of cloud computing has changed the business model. Hosted software solutions or companies that offer SaaS, in particular for call centers, now start with the following:
1) The API/user interface
2) An infrastructure with a strong foundation for infinite scalability
3) The actual application, including bug fixes and product adjustments.
The change of this business model is a good thing because cloud based or hosted software is an emerging and vastly applicable marketplace dictated by the needs of the customer. The user interface comes first. But, the focus on the foundation is so incredibly important for scalability and future growth.
A strong foundation will support all other motives of the company and product, similar to the way that the base of a pyramid is large so that the apex can be unfathomable levels high and still be supported structurally. It also means that with the foundation in place, the actual application can be adjusted accordingly to the changing needs of the market and customers.
This means that customers get an actual say in how they want the product to work and what they want it to be able to do for them and do better. The capability for customer input improves the quality of the overall software and its service delivery model.
SaaS companies can now offer the most scalability not just growth of customers and workload, but also in the way that the software works to meet the demands and intended usages of the customer. The right cloud-based contact center solution comes from a company whose infrastructure, not just their software, allows for unlimited scalability to your needs. Go SaaS!
