Many organizations are reevaluating how they manage customer interactions. Traditional contact centers hosted on-premise often come with limitations related to hardware, manual upgrades, and fixed capacity.
This article explores why businesses are transitioning from traditional on-premise systems to cloud-based platforms like Five9. It begins by examining what Five9 offers and how it compares to older models.
Five9 is a cloud-based software platform that delivers Contact Center as a Service (CCaaS). This means contact center technology is hosted in the cloud by a third-party provider, rather than installed on physical servers at a company's location.
In on-premise contact centers, infrastructure such as servers, phone systems, and data storage is managed internally. This typically requires in-house IT teams for setup, maintenance, and upgrades. In contrast, cloud-based platforms like Five9 are accessed over the internet and managed externally.
The key differences between Five9 and on-premise systems include:
|
Feature |
Five9 (Cloud-Based) |
On-Premise Contact Center |
|---|---|---|
|
Deployment Time |
Weeks |
Several months |
|
Maintenance |
Handled by provider |
Managed internally by IT staff |
|
Software Upgrades |
Automatic and frequent |
Manual and often delayed |
|
Scalability |
Elastic, based on usage |
Limited by physical infrastructure |
|
Remote Work Support |
Built-in cloud access |
Requires VPN or additional setup |
|
Upfront Investment |
Minimal (subscription-based) |
High (hardware, software licensing) |
|
Total Cost of Ownership |
Predictable operating expense |
Higher long-term maintenance costs |
More businesses are using cloud contact center platforms due to their adaptability, faster deployment, and lower overall cost. Cloud models also support distributed teams and integrate more easily with other digital tools.
Scalability means a system can grow or shrink depending on demand. In contact centers, this means adjusting the number of agents, features, or locations without needing new hardware or major upgrades.
Five9's cloud architecture allows companies to adjust operations quickly. Because the system runs in the cloud, businesses aren't limited by physical servers or hardware. This makes it possible to respond to changes in customer demand without delays.
During holidays or special promotions, customer service teams often receive higher call volumes. Five9 allows businesses to add more agents and phone lines temporarily to handle the increase. When the peak period ends, they can reduce usage and avoid ongoing costs.
On-premise systems have fixed capacity based on the physical equipment installed. To handle more calls, businesses would need to buy and install additional hardware, even if it's only used for a short time.
When businesses expand into new regions, they often need new contact center capabilities in each location. Five9 operates through the cloud, which means teams in different countries can access the same system without setting up physical infrastructure.
This supports consistent customer service across multiple regions. Agents can use the same tools and processes, even if they're in different time zones or countries.
Customer preferences change over time, and new communication channels become popular, such as messaging apps or social media. Five9 allows companies to add these new channels to their contact center as needed, without replacing hardware.
Traditional systems typically require hardware updates to support new channels. This process can take months and involve additional costs, making it harder to keep up with changing customer behavior.
Learn more about our Five9 Partnership.
Omnichannel engagement means customers can interact with a business across many communication channels—phone, chat, email, and social media—and have a consistent experience every time. It connects each channel so that conversations feel continuous, no matter how a customer reaches out.
Five9 keeps different channels connected in a single system. This allows businesses to track customer conversations across platforms and provide agents with a full view of past interactions.
Five9 integrates voice and chat channels into one platform. When a customer moves from a chat conversation to a phone call, the agent has access to the full conversation history.
With this integration, agents don't need to ask customers to repeat information. This provides a smoother transition between communication types and helps agents respond more accurately.
Five9 includes email and social media management in the same platform used for voice and chat. Agents can view and respond to messages from Facebook, Twitter, and other platforms alongside traditional emails.
This setup gives agents a complete picture of the customer's communication history. It helps them understand the context of requests and respond with more relevant information.
Five9 includes artificial intelligence (AI) and automation tools designed to improve contact center operations. These technologies help automate repetitive tasks, reduce wait times, and provide support without requiring a live agent for every interaction.
AI in contact centers uses machine learning and natural language processing to understand and respond to customer questions. Automation uses software to complete tasks that would otherwise be done manually, like routing calls or sending follow-up messages.
Learn more about our Contact Center Consulting Solutions.
Interactive Voice Response (IVR) is a system that answers phone calls and guides callers through options. Traditional IVRs often use number-based menus, such as "Press 1 for billing" or "Press 2 for support."
Five9's Intelligent IVR uses natural language processing, which allows callers to speak their requests instead of pressing numbers. The system can understand phrases like "I'd like to check my balance" and then respond or route the call based on what the caller says. This eliminates rigid menu structures and can reduce call transfers.
Predictive dialers are used in contact centers that make outbound calls, such as for sales or appointment reminders. Unlike manual dialing, a predictive dialer automatically calls multiple numbers at once and only connects agents when a live person answers.
Five9's predictive dialing system evaluates patterns such as call duration and agent availability to adjust the pacing of calls. This method can improve agent talk time, meaning agents spend more time speaking with real people and less time waiting for calls to connect.
Intelligent Virtual agents are software programs that interact with customers through voice or text. These agents answer common questions, complete simple tasks, or guide users through basic processes, like checking an order status.
Five9's intelligent virtual agents use AI to understand customer intent and respond with relevant information. If the virtual agent can't handle the request, it transfers the conversation to a human agent with full context of the interaction. This reduces the time customers spend repeating themselves.
Use this calculator to understand how much you can save by using a team of Intelligent Virtual Agents to handle routine service tasks.
Five9 includes tools for workforce optimization that support contact center operations by providing visibility into agent activity. These tools collect and organize data to help supervisors monitor operations and make informed decisions.
Workforce optimization features include scheduling, forecasting, performance tracking, and analytics. These functions help align staffing with customer demand, monitor service levels, and evaluate agent productivity.
Five9 provides real-time dashboards that display current activity in the contact center. Supervisors can view call queues, agent availability, and customer wait times as they happen.
In traditional systems, reporting often relies on batch processing, which introduces delays between data collection and report availability. With Five9, supervisors can respond to issues immediately by reallocating resources or identifying bottlenecks as they occur.
Five9 includes built-in tools for call recording and quality management. These tools allow organizations to record voice interactions and review them for accuracy and service quality.
Supervisors can listen to recorded calls and evaluate them using standardized scorecards. This process helps identify areas where agents may need additional training and ensures conversations meet internal standards.
Cost efficiency is a key consideration when comparing cloud-based contact center platforms like Five9 to on-premise systems. The cost structure for each model differs in how and when businesses spend their money.
Key factors in calculating CCaaS ROI include:
Initial investment: On-premise systems require hardware purchases; cloud platforms use subscription-based setup costs
Ongoing maintenance: On-premise systems need IT personnel and manual updates; cloud platforms include maintenance in service fees
Scalability costs: On-premise systems add costs with each expansion; cloud platforms adjust based on usage
Productivity gains: Cloud platforms often include tools that improve agent efficiency
Customer retention impact: Service improvements can reduce customer turnover
On-premise contact centers require businesses to purchase and maintain physical hardware. This includes servers, phone systems, data storage, and networking equipment. Initial setup often involves large capital expenditures, plus ongoing costs for upgrades.
Five9 operates on a cloud-based model. This removes the need for infrastructure purchases. All hardware is managed by the provider, and updates are handled remotely. Businesses can access the platform using standard devices and an internet connection.
Five9 uses a monthly or annual subscription pricing model. Costs are typically based on the number of users, features, and usage volume. This model helps organizations forecast expenses more accurately over time.
On-premise systems follow a capital expenditure model. Costs are paid upfront for hardware and licenses, with additional expenses for maintenance and support. These costs can vary year to year, depending on system age and upgrade needs.
Subscription pricing allows for more consistent financial planning. It aligns technology spending with operational budgets, reducing the risk of unexpected large expenditures.
Migrating from an on-premise contact center to a cloud-based solution such as Five9 involves evaluating current systems and determining whether cloud architecture aligns with internal requirements.
A contact center operating on legacy infrastructure may experience delays, inefficiencies, or service disruptions. These issues can affect agent productivity and customer experience.
Common pain points that may indicate readiness to migrate include:
Long deployment cycles for new features or channels
Difficulties scaling during seasonal spikes
Frequent system downtime
Limited support for remote work
Inconsistent access to customer insights
Siloed systems that prevent omnichannel visibility
Reviewing these areas can help organizations determine whether current systems support long-term goals.
Security and compliance are core requirements for many organizations, especially in regulated industries such as healthcare and finance. A move to a cloud-based platform requires clear understanding of how data is stored and protected.
Five9 holds several third-party certifications that demonstrate its commitment to secure operations, including SOC 2 Type II, PCI-DSS, HIPAA, and GDPR. Five9 also uses encryption protocols for data in transit and at rest, role-based access controls, and continuous system monitoring.
Organizations evaluating migration can compare these certifications and controls with internal policies and any applicable regulations to determine alignment.
Five9 provides a cloud-based contact center platform that supports business operations as they evolve. It includes tools for automation, real-time analytics, omnichannel communication, and workforce optimization. These capabilities are hosted in the cloud, allowing updates to be delivered without manual installation.
Customer expectations continue to shift toward faster, more personalized experiences across multiple channels. Trends in contact center operations include increased use of AI, expanded remote work, and the integration of voice, email, chat, and social media into a single platform.
A future-ready contact center uses data and automation to respond to customer needs while maintaining compliance and operational visibility. Five9 enables this by offering integration with CRM systems, built-in analytics, and AI-powered features like virtual agents.
Online Business Systems helps organizations deploy and manage Five9 as part of broader digital transformation programs. This includes aligning contact center technology with business goals and ensuring secure implementation.
Contact us for a consultation or immediate assistance with your Five9, contact center, or customer experience needs.
Five9 uses encryption to protect data both when stored and transmitted. The platform includes access controls and undergoes regular security audits. It holds certifications such as HIPAA, PCI-DSS, SOC 2, and GDPR, which align with security standards required in regulated industries like healthcare and financial services.
Five9 provides built-in integrations with customer relationship management systems, including Salesforce, Microsoft Dynamics, Zendesk, and ServiceNow. These integrations allow agents to view customer data and interaction history within the same system they use to handle calls and messages.
Most Five9 implementations are completed within 30 to 90 days, depending on the size and complexity of the contact center. This timeline is shorter than the 6 to 12 months often required for on-premise contact center systems.