MagicQuadrantfortheCRMCustomer

EngagementCenter
27April2015ID:G00264125
Analyst(s):MichaelMaoz,JimDavies

VIEWSUMMARY
TheMagicQuadrantreflectsthesubstantialdifferenceamongsoftwaresuppliers'customersupport
applications.GreatdiligencemustbeshownbyITleadersworkingoncustomerserviceprojects.
Weaknessesremaininprovidingcrosschannelpersistenceofexperienceandembeddedrealtime
analytics.

STRATEGICPLANNINGASSUMPTION
Through2018,anecosystemofatleastfivevendors
willberequiredtobuildtheidealcustomer
engagementcenter(CEC),thecoreofwhichwillbean
intelligentCRMcasemanagementsystem.

EVIDENCE

MarketDefinition/Description
Thisresearchexaminesthemarketforglobalcustomerserviceandsupportapplicationsforcase
management,troubleticketingandproblemresolution.Thefunctionalityevaluatedincludesknowledge
enabledserviceresolution,socialmedia/communitymanagement,offermanagement,interaction
assistancetoolsandserviceanalyticsdashboards.Thereshouldbeagenttoolsandcustomertools,
designedonacommonplatform.
InadditiontothecorefunctionalrequirementhighlightedintheEvaluationCriteriasectionbelow,it
shouldbenotedthat,in2015and2016,agreateremphasiswasplacedon:
Nativemobilesupportofvendor'scustomerserviceandsupportbusinessapplications
Realtimeanalytics
Industryspecificfunctionalityandworkflow
Contextminingofvoiceandtext
Scalablecloudbasedsystems
Socialmediaengagement
Suggestednextagentaction
Multimodalcapabilities,suchaschatwithinmobileselfservice
Cobrowsing
ThesoftwarefunctionalityweightingsfortheCECin2015aresetasfollows,basedonthemostcommon
requirementsexpressedbyGartnerclients:
Casemanagement/problem/serviceresolution(andcontrolsthecustomermasterdata):15%
Knowledgesolution:15%
Realtimedecisionsupport:10%
Supportofcollaborativeonlinecommunities:10%
Integratedemail/chat,collaborationtools:10%
Multisourcesearchoptimizationandauthoring:10%
Visibilityintothesocialgraph,andmonitoringofthecommunity:5%
Fullsupportofcustomersusingamobiledevice(suchasmobilemessaging/chatandcontent):5%
Adaptivebusinessruleengine:5%
SupportofvideolibrariesandvideochatwithcustomersonWeb/mobile:5%
Enterprisefeedbackmanagement:5%
Predictivecustomeranalytics:5%
Offermanagement/salescapability:Noweighting,butconsideredanextra
Virtualcustomerassistant/proactivesmartagent:Noweighting,butconsideredanextra

MagicQuadrant
Figure1.MagicQuadrantfortheCRMCustomerEngagementCenter

Weconductedmorethan200onlinesurveysand
telephoneinterviewswithvendorreferences,aswell
asmorethan750inquirieswithGartnerclients
evaluatingtheproducts.Wealsoconductedvendor
interviewsandproductdemonstrations,aswellas
interviewswithbusinessconsultanciesandsystem
integrators.

EVALUATIONCRITERIADEFINITIONS
AbilitytoExecute
Product/Service:Coregoodsandservicesofferedby
thevendorforthedefinedmarket.Thisincludes
currentproduct/servicecapabilities,quality,feature
sets,skillsandsoon,whetherofferednativelyor
throughOEMagreements/partnershipsasdefinedin
themarketdefinitionanddetailedinthesubcriteria.
OverallViability:Viabilityincludesanassessmentof
theoverallorganization'sfinancialhealth,thefinancial
andpracticalsuccessofthebusinessunit,andthe
likelihoodthattheindividualbusinessunitwillcontinue
investingintheproduct,willcontinueofferingthe
productandwilladvancethestateoftheartwithinthe
organization'sportfolioofproducts.
SalesExecution/Pricing:Thevendor'scapabilitiesin
allpresalesactivitiesandthestructurethatsupports
them.Thisincludesdealmanagement,pricingand
negotiation,presalessupport,andtheoverall
effectivenessofthesaleschannel.
MarketResponsiveness/Record:Abilitytorespond,
changedirection,beflexibleandachievecompetitive
successasopportunitiesdevelop,competitorsact,
customerneedsevolveandmarketdynamicschange.
Thiscriterionalsoconsidersthevendor'shistoryof
responsiveness.
MarketingExecution:Theclarity,quality,creativity
andefficacyofprogramsdesignedtodeliverthe
organization'smessagetoinfluencethemarket,
promotethebrandandbusiness,increaseawareness
oftheproducts,andestablishapositiveidentification
withtheproduct/brandandorganizationintheminds
ofbuyers.This"mindshare"canbedrivenbya
combinationofpublicity,promotionalinitiatives,
thoughtleadership,wordofmouthandsalesactivities.
CustomerExperience:Relationships,productsand
services/programsthatenableclientstobesuccessful
withtheproductsevaluated.Specifically,thisincludes
thewayscustomersreceivetechnicalsupportor
accountsupport.Thiscanalsoincludeancillarytools,
customersupportprograms(andthequalitythereof),
availabilityofusergroups,servicelevelagreements
andsoon.
Operations:Theabilityoftheorganizationtomeet
itsgoalsandcommitments.Factorsincludethequality
oftheorganizationalstructure,includingskills,
experiences,programs,systemsandothervehicles
thatenabletheorganizationtooperateeffectivelyand
efficientlyonanongoingbasis.
CompletenessofVision

MarketUnderstanding:Abilityofthevendorto
understandbuyers'wantsandneedsandtotranslate
thoseintoproductsandservices.Vendorsthatshow
thehighestdegreeofvisionlistentoandunderstand
buyers'wantsandneeds,andcanshapeorenhance
thosewiththeiraddedvision.
MarketingStrategy:Aclear,differentiatedsetof
messagesconsistentlycommunicatedthroughoutthe
organizationandexternalizedthroughthewebsite,
advertising,customerprogramsandpositioning
statements.
SalesStrategy:Thestrategyforsellingproductsthat
usestheappropriatenetworkofdirectandindirect
sales,marketing,service,andcommunication
affiliatesthatextendthescopeanddepthofmarket
reach,skills,expertise,technologies,servicesandthe
customerbase.
Offering(Product)Strategy:Thevendor'sapproach
toproductdevelopmentanddeliverythatemphasizes
differentiation,functionality,methodologyandfeature
setsastheymaptocurrentandfuturerequirements.
BusinessModel:Thesoundnessandlogicofthe
vendor'sunderlyingbusinessproposition.
Vertical/IndustryStrategy:Thevendor'sstrategy
todirectresources,skillsandofferingstomeetthe
specificneedsofindividualmarketsegments,including
verticalmarkets.
Innovation:Direct,related,complementaryand
synergisticlayoutsofresources,expertiseorcapital
forinvestment,consolidation,defensiveorpre
emptivepurposes.
GeographicStrategy:Thevendor'sstrategytodirect
resources,skillsandofferingstomeetthespecific
needsofgeographiesoutsidethe"home"ornative
geography,eitherdirectlyorthroughpartners,
channelsandsubsidiariesasappropriateforthat
geographyandmarket.

Source:Gartner(April2015)

VendorStrengthsandCautions
bpm'online
AnestablishedCRMsolutionproviderforthemidmarket,bpm'onlinehasofficesintheU.K.andnowin
theU.S.,whereitsbrandawarenessisslowlyincreasing.Thevendorhasover6,000customersspanning
sales,marketingandcustomerservicedepartments.Itscorestrengthisintheprovisionofoutofthebox
processesthatguideusersthroughthemostappropriateactionstoensureeffectivecustomer
interactions.ThemultichannelCECcomponentallowscustomerstomanagetheirinteractionsregardless
ofchannelthroughacentraluserinterface,withembeddedknowledgemanagementandcase
managementcapabilities.
Strengths
Theproductsupportsbothonpremisesandcloudbasedconfigurations,providinggreater
deploymentflexibility.
Referencesscorebpm'onlinehighlyforthesolution'scaseroutingandmanagementcapabilities,as
wouldbeexpectedduetothevendor'sprocessorientatedfocus.
Thesolutioniseasytoconfigureandmodify.Ithasstrongcomputertelephonyintegration(CTI)
capabilitiesforphonebasedinteractions,andgoodemailandsocialmediasupport.
Referencesscoredbpm'onlineextremelyhighinthecategoryof"costtovalue,"soalthoughitisnot
necessarilyoneofthelessexpensiveoptions,customersperceivetheadditionalsophisticationtobe
worththeassociatedoutlay.
Cautions
Referencesscoredthesolution'sonlineknowledgemanagementandsearchcapabilitiesforcustomer
selfservicemuchlowercomparedtotheagentdrivencapabilities.
Customersoftenturntothirdpartytechnologiesforchannelssuchassocialmedia,mobilechatand
video.
Referencecustomerscitedthattheyexpectedastrongerbusinessintelligence(BI)capabilitythan
whatwasdelivered.
Thecomplexityoftheproductmaybeexcessiveforsomesmallcustomers.Theinherent
sophisticationoftenprotractsdeploymentsduetoadditionalprocessconfigurationusertraining
needs.
Thevendorappearsaimedatthemidmarket,withmostreferencesinEurope.Itsviabilityforlarger
organizationsoutsideoftheEUwouldneedtobecarefullyverified.

CRMnext
CRMnext'sCECfunctionalityisespeciallyinterestingasitalsohasastrongemphasisonsalesforce

automation.BasedinIndia,CRMnexthasthemajorityofitspresenceintheAsia/Pacificregionandsome
partsoftheMiddleEast.Gartnerestimatesthatthevendorhasover400employees.Ithasverylarge
customers,withtheaveragecustomersupportorganizationhavingover1,500userslive.Thevendor
supportsSaaSandonpremisesdeploymentswiththesameproduct,andbothversionsarepricedinthe
lowerrangeforCECsolutions.CRMnexthasdirectchannelsinIndia,SoutheastAsiaandtheMiddleEast,
butreliesonpartnersoutsidethoseregions.
Strengths
CRMnexthasgoodregionalstrengthinIndia,HongKongandSingapore,aswellasapresencein
partsoftheMiddleEastandAfrica.
Theproductwasratedhighoncosttovalue,orROI,versusitspeers.
Theproducthasasinglecodebaseforbothonpremisesdeploymentsandcloudbasedofferings.
TheCRMnextprofessionalservicesteamhasgoodproductunderstanding,althoughthereisnot
enoughthirdpartyknowledgetooffercustomersanalternative.
Theproducthasgoodworkflow,andhasbeendeployedwithintegrationsintonumerousinternal
systems.
Cautions
Thevendor'sreachisverylimitedbeyondIndia,partsofAsiaandtheGulfCooperationCouncil
states.
Theuserinterfacecanfeelcluttered,andthetoolstoconfigure,extendandredesigntheuser
experiencecouldbeimproved.
Limitedindependentsoftwarevendor(ISV)partnersisanissueforclientstofillfunctionality"white
space"withitsproductoffering.
CRMnexthasnotprovidedagoodroadmapforfutureproductreleasesandenhancements.
Themobilecomponentoftheproduct,aswellaschatandsocialmediaengagement,wereseenby
customersasareasinneedofimprovement.

Eptica
Epticaisasub$15millionnichevendorofCECsolutionsprimarilyservingtheEuropeanbusinessto
consumer(B2C)midmarket,wheredeploymentshaveapproximately100agents.Thevendor'ssolution
isavailablebothonpremisesandinthecloud,andithasagoodcustomersplitacrossbothdeployment
modes.TheEpticaproductsaregearedtocustomerselfserviceandengagementtoolsthataugment,
ratherthanreplace,acustomerservicesoftwarepackage.Ithasagoodplatformforemailresponse
management,knowledgemanagementandsocialengagementsintegratedintoaCRMdesktop.
Strengths
Theproducthasastrongabilitytounderstand,routeandautosuggestresponsestotextbased
customerinteractions,whichamongitscustomersareprimarily,butnotrestrictedto,emailbased.
Theproducthasstrongknowledgemanagementcapabilitieswithselflearningfeatures,supported
bynaturallanguageprocessing(NLP)basedlinguisticcapabilities.Welldocumented,openAPIs
enablethecreationofasingleknowledgebaseforWeb,socialmediaandmobileselfservice.
Thevendorhasdevelopedpartnershipswithestablishedcontactcenterinfrastructureproviders.
EpticahasgoodcapabilitiesforWebcommunityengagementandcollaborativemanagement.
Cautions
ThevendorisagoodWesternEuropeanregionalprovider.Outsideofthisarea,prospectsshouldbe
particularlycautiousduringthereferencecheckingprocess.
Referencescitefrustrationduringdeploymentduetoprojectplanningandexecutionchallenges,
suchasintegration,trainingandchangemanagement.
Callscripting,predictivemarketingandsocialmediamanagementcapabilitiesarenotbestinclass.
Veryfewcustomersusethefullsuiteofchannels,soviabilityacrossareaslikemobile,videoand
socialarelessverified.Referencesciteusabilityissueswiththegraphicaluserinterfaceandreporting
capabilities.
TheproductisnotgenerallyareplacementforaCRMcustomerrecord,butalayerofapplications
thathelpstonavigatecustomersacrosschannels.

LithiumTechnologies
LithiumTechnologiesrepresentsafreshperspectiveoncustomerengagement.LithiumSocialWebisa
socialengagementserviceproduct,ratherthanaformalCRMagentdesktopwithcasemanagementat
thecore.Asanontraditionalcustomerservicesystem,itsupportscustomerengagementinsideonline
customercommunities.Itisbecauseofitsstrongfocusoncustomerengagementonsocialchannels,
whileconnectingtheseinteractions(asnecessary)toabroaderCRMinitiativeorprocess,thatLithiumis
includedintheCRMCECMagicQuadrant.
Strengths
Forbusinessesusingasupportcommunitytosolveproblems,Lithium,withitscommunityplatform
andcustomerengagementcapabilitiesandanalytics,isagoodcandidateforshortlists.
LithiumhasgoodintegrationcapabilitiestoconnectwithunderlyingCRMsystems.
Thevendordoesmorethanjustcustomersupport,anditsrealvalueisinpromotingandsupporting
corporatebrandsinmarketing,salesandservice.Itsstrengthingamificationisespeciallyhelpful.
Goodcapabilitiesareprovidedtotakeaconversationthatbeginsinsideapublicarea,suchasan

onlinecommunity,andcontinuetheengagementinaoneononeconversation,wherebymore
corporateinformationaboutthecustomercanbebroughttobearonhowtoproceedwiththeclient.
Cautions
Lithium'ssystemisnottypicallyareplacementforatraditionalCRMsystem.Itisnotusedforthe
customermaster,andinsteadlinkstothesystemswherethecustomerinformation,case
managementandotherbusinessrulesexist.
Lithiumisnotacustomerselfservicevendorwithasuiteforemail,chat,knowledgemanagement,
cobrowsing,videoagentsorvirtualcustomerassistants.
Clientsandreferencesmentionthelimitedoutoftheboxfunctionalitybeyondcustomer
communities,aswellasahighcostofownership(despitegoodreportsoncosttovalueforthe
softwareservices).Wehaveseenverylittlesocialengagementforcustomerserviceusedonmobile
devices.
Weestimatethat90%ofLithiumSocialWeb(thevendor'ssocialengagementserviceproduct)
customersareintheU.S.andWesternEurope.

Microsoft
MicrosoftDynamicsCRMforCustomerServiceisexperiencingrenewedinvestmentandfocuswithin
Microsoft.Ithashadsustainedclientinterest,andcontinuestobeusedforonpremisesdeploymentsand
innontraditionalcustomerservicecontactenvironments.ThenewestreleaseofMicrosoftDynamicsCRM
2015supportstheunifiedservicedeskforserviceagentsandanintegrationwithMicrosoftSocial
Listening,allinacloudmodel.Noreferenceswereavailableofthecombinedproduct,asitisanew
offering.TheonpremisesMicrosoftDynamicsCRM2013productisstilleasiertoreferenceforthemore
complexneedsofindustriessuchasgovernment,healthcare,highereducation,realestateandretail.
Strengths
MicrosoftDynamicsCRMforCustomerServicewasthesecondmostaskedforCRMproductina
globalGartnersurvey(n=175)conductedin1Q15,indicatingthestrengthoftheMicrosoftbrand.
Therearegoodcustomerselfservicecapabilities,acquiredfromParature,althoughtheyarelargely
unintegratedattheclientsites.Inaddition,theintegrationofMicrosoftSocialListeningandSkype
forBusinesshashelpedbolstertheproduct.
Theproductblendssales,serviceandmarketing,andtightlyintegrateswithotherMicrosoftassets,
suchasOfficeandSharePoint.Ongoingimprovementstotheuserinterface(forexample,better
screenlayout,intuitivescriptingandreducedkeystrokes)helpwithstandardtasks.
ThevendorhasthebenefitofsolidfinancialstandingandcommitmenttotheCRMproductline,
globaldatacenters,sales,marketingandcustomerservice,aswellasaccesstoadeepbenchof
developerresourcesandglobaldeploymentpartners.
Cautions
Therearestillfewexamplesofcomplex,large,cloudbasedCECs,and,overall,therehavebeen
performanceissuesthat,althoughfixable,arenoteasilydiagnosed.
ApoortrackrecordinattractingISVpartnersisanissueforclientstofillfunctionalitywhitespace
withitsproductoffering,despiterecentimprovedmomentum.
Themobileclientisnotfocusedonconsumers,butratheronemployees.
Microsoftreferencesreferredtokeytechnicalgapsinfieldlevelsecurityandsupportfor
multiorganizationalstructures,complexsupportteamsandmultipleaccounthierarchies.Microsoft
statesthattheseissueswereaddressedinMicrosoftDynamicsCRM2013,SupportPack1andlater.
Clientsmentionasaconcernthelackoftrainedprofessionalservicespartnersthatunderstandbest
inclasscustomerservicecenters,andhowtoconfigureMicrosoftDynamicsCRMtoachievethesein
theirindustriesandgeographies.AlthoughMicrosofthasgooddevelopmenttools,customersdonot
findthemdirectedatcustomerserviceandsupportscenarios.

mplsystems
AsmallU.K.basedproviderofCECandfieldservicesupporttechnologies,mplsystemsoffersasolution
thatisparticularlysuitedtoenvironmentsthatrequireastrongscriptedcallhandlingcapability.The
vendorisgrowingrapidly,anddeploymentsappeartobegrowinginsizeandcomplexity.Deploymentsare
primarilycloudbased,butsupportforonpremisesisavailable.
Strengths
Thevendorhasstrongdomainknowledge/experiencewithinitsprimarytargetindustries(retail,
financialservicesandoutsourcing).Ithasagoodattitudetowardtrainingandsupport,andis
responsivetocustomerneeds.
Thesolutionhasgoodconfigurabilityandflexibility,enablingcustomerstotailorittotheirspecific
needs.
Althoughmostcurrentcustomershavejustdeployedthecasehandlingforphoneandemailwith
associatedscriptingcapabilities,mplsystemsstatesthatrecentwins(notyetreferenceable)have
embracedamuchbroadersetoftechnologies,suchasknowledgemanagementforselfservice,
chat,realtimedecisionsupportandsocialmedia.
Thesolutionispricedandpackagedtoprovideviabilityforenvironmentswithasfewas10
employeestoseveralhundred.
Cautions
Thevendorisexperiencingsomechallengeswithprojectmanagement,apparentlyduetoshorttime

scalesfordeploymentandthesubsequentprojectphases.
Integrationwithexistingtelephonysystemprovidersisnotalwaysasseamlessasitshouldbe.
Untilrecently,customerdeploymentswererelativelysimpleinscope.Itwilltaketimefortherecent
moresophisticatedandmultichanneldeploymentstobecomereferenceable,andtoconfirm
mplsystemsasaviableCECsolutionprovideracrossallchannels.
Thesolutionlacksadvancedpredictiveanalyticscapabilities,andreferencecustomerssuppliedhad
yettodeploychatorsocialmediacapabilities.Mostreferencesnotedalackinknowledge
managementandonlineselfservicecapabilities.

Oracle
OracleServiceCloudistheoverallproductgroupthatcontainsthecustomerserviceproductacquiredas
partofOracle'sacquisitionofRightNowTechnologiesinearly2012.WemostheavilyweighttheCross
ChannelContactCenteratthecoreofamodernCEC.Allreferencesreferredtotheproductas"Oracle
RightNowCX."
Strengths
TheOracleCrossChannelContactCenterproducthasgreatlyimproveditscapabilitiesthroughthe
integrationofcobrowsing,policyautomationandprivatemessagingsupportforFacebook
Theproductreceivedgoodmarksfromreferencesforcustomerselfserviceandassistedserviceon
brandedwebsitesandmobiledevices.Thisincludesemail,chat,knowledgemanagementandco
browsing.
Thesolution,deliveredasasubscriptionserviceinacloudmodel,isstraightforwardtosetupand
configure,anddoesnotrequiredeepITinvolvement.
OracleServiceCloudhasastrongglobalpresence,andthemassiveOracleinstalledbaseof
customers,aswellasbusinessapplicationsandtechnologiesforallpartsofthebusiness,makethe
offeringattractivewhenthefunctionalfootprintisalignedwithbusinessneeds.
Cautions
Theproductfocusisnotonoutoftheboxindustryprocesses,suchasmultiplesupportteams,
multiorganizationalstructures,multiplebusinessprocessestiedtolegacysystemsanddistributed
supportcentersinareassuchashealthinsurance,banking,hospitalityandotherdemanding
consumerenvironments.
Overall,someclientsandprospectsofOracleServiceClouddon'tseeOracle'scommitmenttothis
partoftheCRMspace.
Gartnerhasnotseenlargedeploymentteamsorconfigurationteamsfromthelargestsystem
integratorsandglobalconsultancies(suchasIBM,Accenture,DeloitteandCapgemini)fortheCEC
ortraditionalcontactcenterdesktop.
Thesolutioniscloudbased.Prospectswithapreferenceforonpremisesdeploymentswillneedto
consideronpremisesalternatives.

Pegasystems
Pegasystemshasabroadandsophisticatedsetofcustomerengagementtools.Thevendorisratedhighly
bothonthisMagicQuadrantandintheMagicQuadrantforBPMPlatformBasedCaseManagement
Frameworks.Itisanearly$600millionbusinessdedicatedtocustomerengagementandprocess
optimization.Withover3,000employeesworldwidefocusedonbusinessprocesses,itisamongthethree
topthoughtleadersintheCRMindustryoverall.Pegasystems'revenuegrewbyover15%in2014
(including24%throughclouddeployments).
Strengths
Pegasystemshasanunparalleledabilitytohandlecomplexcases.Thismeansthatthecasecan
ingesttargeted,contextualinformationwhetheritbecontent,dataorruledependingonthe
need.
IntheCECspaceandCRMoverall,Pegasystemshasthebestabilitytomodelandpredicta
customer'sbehavior,andtodeliverthenextactiontotheagent.
Thevendordeliversindustryspecificbestpracticesspecificallyforinsurance,healthcareandfinancial
services,aswellasprebuilttemplatesthataccelerateadoption.Wehavealsoseenstrongrecent
movesintotelecommunications.Manyuserstalkabouttheabilitytobuild,viewandaudit
processes,andtheuseofthe"directcaptureofobjectives"(or"DCO")methodology,aPegasystems'
term.Theshortdescriptionisthatateamcandesignabusinessprocessandintegratetheresultat
therightpointintheapplication.Thisalsomakessupportpracticeseasytochange.
Cautions
Referenceswereunabletovalidatekeyfunctionalityandusabilityforsocialmediaengagement,
integrationandproofofresponsivedesignbetweeninlinesupportonawebsiteandonmobile
applications.Theyalsocitedanoveralllackofexperiencewithvideoforagents,Webcommunitiesor
mobilechat.
ThemajorityoftraditionalITdrivenorganizationsdonotfavorPegasystems'businessprocess
management(BPM),modelbasedapproach(whichisdifferentfromtraditionalsoftwarecoding
environments)forCEC.Whereasindustriessuchasinsurance,healthcareandfinancialservicesare
drawntoaproductwitharuleenginetoresolvecomplexity,theproductmaynotbetheidealchoice
forashortlistforenterprisesinwhichthereareinfrequentchangesandlowcomplexity.Wewere
unabletovalidatetheexperiencesofreferencesusingthenewPega7,whichpromisesmanynew
designfeaturestosimplifymodelingandconfiguration.
Despitestridesinbuildingthepartnerecosystem,referencescitedashortageofhighlyskilled

consultingresources,especiallywithmultiindustryexperienceoutsideNorthAmericaandtheU.K.,.
Prospectsshouldlookforreferenceswithsimilarrequirements.
ProspectsthatarenotversedinBPMfindapplicationpricinghighversusotherproductsonthe
market(referredtoinsurveysas"valueformoneyspent").

Salesforce
Salesforceisthefirstvendorinhistorytoachieveover$5billioninCRMsoftwaresales.Ithasastrong
presenceinkeymarkets,andisthedefaultchoiceforshortlistsforB2Bcustomerserviceandsupport
solutions.Gartnerestimatesthat50%ofnewrevenuecamefromtheServiceCloudline,making
SalesforcetheleadingCECvendor,asmeasuredbysalesvolume.However,itisnotaleaderincomplex
B2Cservicecenters.
Strengths
ForB2Bcustomerserviceoperations,especiallythosewithanestablishedSalesforcepresenceinthe
salesdepartment,ServiceCloudisthedefactoshortlistproductintheU.S.,WesternEurope,Japan
andAustralia/NewZealand.
KeynewcustomersbothB2BandB2ChaveshownenoughfaithintheCECproducttoinvest
morethan$10millionperyearinSalesforce,whileretiringhomegrownsystemsand/orsystems
fromcompetitorsthatwereatanendoflifestage.TheyconsidertheSalesforceapplicationplatform
astrategicasset.
TheenormouscloutthatSalesforceexertsinthemarkethasattractedagloballistofkeysystem
integratorsandcomplementarysoftwareproviders.
TheCommunitiesproductforinternalcollaborationoncustomerissuesisbecomingadifferentiator
forthevendor.Itisoftenthefirststepinamorecompleximplementation.Assuch,itisagood
placetolearnthestrengthsandchallengesoftheproduct.
Cautions
Thegraphicaluserinterfaceforthecustomerserviceagentisbeginningtolookdated,although
effortsareinadvancedstagestoreleaseanimprovedexperience.Clientsarelookingforsomething
moreintuitive,lessclutteredandwithmoreintelligencebakedintotheapplication.
Agrowingnumberoflongertimecustomersareraisingissuesofhighpricingandvendorlockin
oncetheyintegratemultipleSalesforcecomponents.Customersshouldnegotiatepricingbasedon
currentneedstoavoidpotentialshelfware(payingforsubscriptionlicensesthatareunused).As
clientsbuildoutmorecomplexCECcapabilities,theydiscoverthemaintenancecomplexitiesthat
werenotapparentwhentheinstallationswerekeptsimple,andthat,whencombinedwithsoftware
costsresultinahigherthanexpectedtotalcostofownership.
Featuressuchascomplexchat,intuitiveknowledgemanagement,contentmanagementand
multichannelinteractionroutingarebesthandledbypartners.Webcustomerselfservice
capabilitieswereratedwellbelowtheindustryaverageinourreferencesurvey.
ThereisstilllimitedabilitytobuildandsupportaglobalclassB2CCECproduct(forexample,those
thatrequireintegrationsandongoingsupportofphoneswitches,emailexchangesorbackendreal
timeprocessingsystems).Werecommendrelyingonsimilarsize/complexityreferencechecksfor
largescale,highvolumeengagementcenterswhereprocessesmustbecontinuallysynchronized
andmonitored,suchasretailbanking,loanorigination,insurancepolicyadministration,bill
processingandfraudmanagement.
ThevendorhasalimitedAsian,SouthAmericanandEasternEuropeanpresenceinlargerscale
(morethan200seats)CECs.

SAP
SAP'svisionfortheCEChasimproved,andsohasitscommitmenttothecloud.Weevaluatedboththe
onpremisesandthecloudproduct(SAPCloudforService).TheproductsareavailableinallofSAP's
geographicregions.
Strengths
SAPisastrongandprofitablecompany,withnearly$17billioninyearlysalesandover70,000
employeesaroundtheworld,mitigatingthefinancialrisksofmakingalargeandongoing
investmentintheproduct.
Theproducthasfunctionalbreadthoutsideofcustomersupport,especiallyforconsumerpackaged
goodsorB2Bmanufacturersandutilities.Thevendorhasverystrongintegrationcapabilitiesand
knowledgeofendtoendB2Bprocessesforordermanagement,pricing,shipping,logisticsand
inventory.Togetherwiththehybrisproduct,thissetsupSAPforagoodfutureintheCECspace.
ComponentssuchastheuserinterfacetoolFioriandthesocialnetworkingtechnologyJam,aswell
astheanalyticstoolsandSAPinfrastructure,maketheCECproductastrongeventualcontender,
despitemanycurrentchallenges.
Cautions
SAPreferencesassignedthecustomerservicecloudproductlowerthanaveragesurveyscoresfor
industryspecificcapabilitiesandmobilechat.Fortheonpremisessolution,socialmedia
engagementandthecapabilitiesforWebcommunitiesneedimprovement.
ReferenceshavegivenSAPlowscoresforpostimplementationsupportresponsiveness.Thevendor
wasrepeatedlycitedasneedingimprovementintheresponsivenessofitsanditspartners'
customerservice,technicalsupportandproductdevelopmentteams,allofwhichdroveupcostsand
delayedprojects.
Wehavenotseenstrongcapabilitiesforcomplexcases(forexample,launchingabusinessprocess

atacertainstageintheapplication,supportofcomplexsupportorganizationsorsupportofmultiple
businessunitsonthesameinstance).
Gartnerhasnotseenthemultitenantcloudproduct(SAPCloudforService)inascalable
deployment.Someofthechallengeappearstobethenewnessofthecloudproduct,asreferences
notedslowresponsetimes,difficultyinconfigurationandchallengeswiththeuserinterfacesetup.

SugarCRM
SugarCRMwaslistedsixthoutofthetop22CRMproductsshortlistedforcustomerserviceandsupport,
whichisariseoffourplacesinoneyear.Itisaprivatelyheld,420personcompanywithrevenue
estimatedat$100millioninthepastfourquarters(Gartnerestimates),ofwhich20%maybeintheCEC
area.MostdeploymentsintheCECareinsmalltomidsizesupportorganizations.
Strengths
TheCECproductisavailableglobally,bothonpremisesandinthecloud,whichisastrong
advantageforsomecompanieswithlargerormorecomplexneeds,wherelatencycanbeaconcern.
SugarCRMcontinuestoreleasefrequentenhancements.
Thebasicfeaturesofproblemresolutionandcasemanagement,aswellascaserouting,arehighly
ratedfortheireaseofsetupandmanagement.Theinterfaceiseasytoconfigureandnavigate,and
usersfinditrelativelyintuitive.
SugarCRMusesanopensourcestack,withPHPasitscoreextensionlanguage,givingcustomers
accesstothesignificantnumberofopensourcedevelopersworldwide.
Forsmalltomidsizesupportorganizationsoftenalreadyusingorplanningtodeploysales
automation,especiallyinB2Bsettings,theproductshouldbeconsideredforshortlists.Thecostof
thesoftwareisbelowtheaverageofthatofthetopfiveCECsolutionproviders.
Cautions
TheproductwasratedasbelowmarketaverageforWebcustomerselfservice,predictiveanalytics,
decisionsupport,emailresponsemanagement,socialmediaengagement,mobilechat,advanced
knowledgemanagementandvirtualcustomerassistants.
ImplementationsforCEC/customerserviceareprimarilyonpremises,withfewcontaining
computertelephonyintegration,orwithmorethan100supportagentsinmultiplelocations.Larger
cloudcustomersmentionedsystemlatencyissues.SugarCRMmustworkonthequalityofits
softwarepatchesduringnewreleases.
Theproductisnotstronginprovidingindustrytemplatesoroutofthebox,industryspecific
functionalityorbusinessprocessflows,ormodellingtoolsforthoseindustries.
Gartnerhasnotseenaninternationalcustomersupportorganizationof250ormoresupportagents
usingtheproductinthecloud.

VerintSystems
ThisevaluationisspecificallyfortheKanacustomerservicesoftwaresolutionsacquiredbyVerintSystems
in2014.Weseepotentialsynergyinbringingcustomerserviceapplicationsandanalyticssoftwarefrom
KanatoVerint's10,000customers.Verinthasagloballydeployedprofessionalservicesorganizationand
over$1billioninrevenue.
Strengths
Verinthasasubstantialinstalledbaseandasubstantialdevelopmentorganizationrelativetomany
competitors,providingthebaseforpotentialfutureproductandserviceenhancements.
Thevendorscoredwelloncasemanagementandcustomerproblemresolution.
Verinthasproductsforanalytics,aswellasgoodsoftwareintheareasofworkforceoptimization,
fraud,riskandcompliance.
TheKanaproductcanbeconfiguredformultipleuserroles,whichspeedstheaveragehandlingtime
foratask,streamlines/shortensthetrainingperiodandmakesnewcomplexprocesseseasierto
introduce.
Cautions
MostrecentinquiriesaboutKanahavebeenforthecustomerselfservicecomponentsand/or
productsthataugmentexistingCRMsystems,ratherthanacompleteCECsolutionincludingan
agentdesktopforcasemanagement.
Mostrecentreferencesdidnotreportusingeithervideoorsocialmediaengagement.Theyalso
commentedthatVerintdoesnotprovideindustryspecificcapabilities.
Mostrecentdeploymentsareasamanagedservice.
Therearefewlargedeploymentsincomplexenvironments(over500userswithindustryspecific
workflowsandmultiplelegacyintegrationpointsfeedingdatainnearrealtime),asapercentageof
theoverallcustomerbase.MostdeploymentsareintheU.S.,andWesternEurope.
Prospectsshouldlookforthelocalavailabilityofprofessionalservicespersonnelforthespecific
productsetthattheywishtodeploy,backedbyreferences.

Zendesk
Zendeskwasfoundedonlyin2007,yetithasgrownandscaledtosupportmorethan50,000customers
acrosstheworld,80%ofwhichweestimatearesmallimplementationsoffewerthan20users.During
2014and2015,Gartnerhasseenmultipleinstancesofbetween100and250users.Zendeskisa
publiclytradedcompanyandnowhasover$125millioninrevenueandagrowthrateof75%.Its
producthasacloudbasedSaaSsubscriptionmodelandappealsprimarilytoorganizationswithsmallto

midsizesupportorganizationswithsimpleneeds.Thevendorhasseveralproductpackages,andthe
EnterprisepackagewasevaluatedforthisMagicQuadrant.
Strengths
In2014and2015,referencecustomersgaveZendeskthehighestoverallsatisfactionscoresofany
vendorincludedintheCRMCECMagicQuadrantforproductimplementation.Inparticular,itwas
rankedbestinresponsivenessforitstechnicalsupport,livinguptothepromiseofthesoftware,and
makingadherencetoprojecttimelinespossible.
Theuserinterfaceisverywelldesignedandreceiveshighpraisefromreferencecustomers.For
supervisors,inparticular,manyoftheproductfeaturesarealsoavailableonmobiledevices,suchas
theAppleiPad.Inanewoffering,ZendeskwillconnectwithFacebookMessenger,allowingfor
supportviathispopularsocialmediatool.
TheSaaSarchitectureallowstheproducttobedeployedinmostkeyworldmarkets.
ZendeskhasagoodpresenceforsupportanddatainWesternEuropeandtheU.S.,withadditional
officesinAustralia,Brazil,SingaporeandJapan.
Cautions
Theproductscoredlowforsocialmediaengagement,predictiveanalytics,advancedknowledge
managementandconsistentexperienceacrossmobile,communitiesandwebsites.
Wewereunabletovalidatethesolutionforlargeand/orcomplexcustomersupportorganizations.
Prospectsshoulddemandindustry,geographyandprocessspecificreferencesbeforeproceeding.
Configuringcomplexprocessesisdifficult,asisthequeuingofmultichannelinteractions(chat,co
browse,socialpostsandinteractivevoiceresponse[IVR])incomplexenvironments.WeseeCTIasa
challengeformultisitedeployments,asisthecreationofcomplexsupportteamsorsupportof
multipleorganizationswithinasingleinstance.
Zendesk'scustomersupporttoolisnotfeaturerich,anddoesnothavespecificfunctionalityfor
mostindustries.ItassumesthattheusergroupwilluseopenAPIstointegrateintotheunderlying
systemsthatholdtherulesforothercustomeractivities.

VendorsAddedandDropped
WereviewandadjustourinclusioncriteriaforMagicQuadrantsandMarketScopesasmarketschange.As
aresultoftheseadjustments,themixofvendorsinanyMagicQuadrantorMarketScopemaychange
overtime.Avendor'sappearanceinaMagicQuadrantorMarketScopeoneyearandnotthenextdoes
notnecessarilyindicatethatwehavechangedouropinionofthatvendor.Itmaybeareflectionofa
changeinthemarketand,therefore,changedevaluationcriteria,orofachangeoffocusbythatvendor.

Added
bpm'online
mplsystems

Dropped
AstuteSolutions.Thevendor'sePowerCenterhasbeenratedinpastyearsasagood,cloudbased
offeringfortheconsumeraffairsmarket.Thisyear,wehadinsufficientinformationuponwhichto
basearatingfortheMagicQuadrant.
NiceSystems.ThesolutionsareanoverlaythatcomplementexistingCRMcapabilities,whichare
notinscopeforthisevaluation.
Oracle(Siebel).Theproductcontinuestobeavailableinthemarket,especiallyundersupport.As
OraclefocusesonOracleServiceCloudastheleadproductforCEC,wearecoveringthecloud
offeringinthisMagicQuadrant,whilecontinuingtoevaluatetheSiebelproduct.

InclusionandExclusionCriteria
Inclusioncriteriaareusedtodeterminewhichvendorswillbecoveredinthisresearch.
MarketPresenceandMomentum
Factorsthataffectourevaluationarethepresencethatavendorhasinthemarket,andtheobserved
momentumofitsgrowth.Avendorwithstagnantsalesoranineffectualmarketingorganizationshould
concernprospectivebuyers.Gartner'scriteriaspecifythatvendorsshould:
Haveaminimumof15customersusingthelatestversionofthesamesoftwareforcustomer
serviceandsupportfunctionalityinacontactcenter,includingexamplesofsocialmediaintegration.
Haveatleastfivenewcustomersforcustomerserviceandsupportduringthepastfourquartersin
atleasttwogeographicregionsforexample,theAsia/Pacificregion,LatinAmerica,South
America,NorthAmerica,andtheMiddleEast,AfricaandEurope.(Anoteontheevaluationprocess:
UnlessGartnervalidatedthename,jobtitleandcontactinformationofareferencedirectlyinvolved
inthesoftwaredeploymentandusage,the"customer"wasnotacceptedasacustomerforthe
purposeofdatagathering.Werequiredthatthesoftwareproviderexplainverybrieflywhenthe
customerwentlive,where,withwhatfunctionality,forhowmanysupportagentsandinsupportof
howmanyofthecustomer'sclientsviaWebandsocialmediachannels.Then,wevalidatedthat
informationwiththereference.)
Beabletodemonstrateatleast$7millioninsoftwarerevenueforcorecustomerserviceand
supportinthecontactcenter/CEC(thatis,asthedesktopofrecord)fromnewclientsduringthe
pastfourquarters.

Demonstratethattheywillequalorexceedthepreviousfourquartersofbusinessresultsinthe
upcomingfourquarters.
Appearregularlyonclientshortlists.
Haveapracticewithsufficientthirdpartyconsultingandintegrationfirmstogrowatadoubledigit
paceforfiveyears.
Havesufficientprofessionalservicestofulfillcurrentandfuturecustomerdemandsduringthenext
sixmonths,andatleastenoughcashtofundayearofoperationsatthecurrentburnrate.
Havethetechnologytosupportanextensiontocrosschannelcustomerservice,withouttheneed
tocodeinanewdevelopmentenvironment,includingmobileandsocialmedia.

EvaluationCriteria
AbilitytoExecute
Gartneranalystsevaluateprovidersonthequalityandefficacyoftheprocesses,systems,methodsor
proceduresthatenableITproviderperformancetobecompetitive,efficientandeffective,andtopositively
impactrevenue,retentionandreputation.Ultimately,providersarejudgedontheirabilityandsuccessin
capitalizingontheirvision.

Table1.AbilitytoExecuteEvaluation
Criteria
EvaluationCriteria

Weighting

ProductorService

High

OverallViability

Medium

SalesExecution/Pricing

High

MarketResponsiveness/Record

High

MarketingExecution

High

CustomerExperience

Medium

Operations

Medium

Source:Gartner(April2015)

CompletenessofVision
Gartneranalystsevaluateprovidersontheirabilitytoconvincinglyarticulatelogicalstatementsabout
currentandfuturemarketdirection,innovation,customerneeds,andcompetitiveforcesandhowwell
theymaptotheGartnerposition.Ultimately,providersareratedontheirunderstandingofhowmarket
forcescanbeexploitedtocreateopportunityfortheprovider.

Table2.CompletenessofVision
EvaluationCriteria
EvaluationCriteria

Weighting

MarketUnderstanding

Medium

MarketingStrategy

High

SalesStrategy

High

Offering(Product)Strategy

Medium

BusinessModel

Medium

Vertical/IndustryStrategy

High

Innovation

Medium

GeographicStrategy

Medium

Source:Gartner(April2015)

QuadrantDescriptions
Leaders
LeadersdemonstratemarketdefiningCompletenessofVisionandtheAbilitytoExecuteagainstthat
visionthroughproducts,services,demonstrablesalesfiguresandsolidnewreferencesformultiple
geographiesandverticalindustries.Clientsreportthatthevendorsdeliverahighlevelofvalueandreturn
ontheircommitment.Thedevelopmentteamhasaclearvisionoftheemergingareaofcustomer
engagementandthemobilefirstfuture,consistentwithotherchannels.Theyengineerflexibleproducts
thathaveeasilychangeablebusinessrules.Theyfactorintheimpactofsocialnetworkingandthe
InternetofThings,includingwearabledevices,oncustomerservicerequirements.
AcharacteristicofaLeaderisthatclientslooktothevendorforcluesastohowtoinnovateincustomer
serviceinareassuchasrealtimeanalysisforandaboutthecustomer,embeddedsensorsinequipment,

mobilesupport,andextensiontosocialcommunities.Thevendordoesnotnecessarilydriveacustomer
towardvendorlockin,butratherprovidesopennesstoanecosystem.Whenasked,clientsreplythata
Leader'sproducthasaffectedtheorganization'scompetitivepositioninitsmarketsandhashelpedlower
costs.Leadersdemonstrated$50millioninsalestonewcustomersduringthepastyear.

Challengers
ThevendorsintheChallengersquadrantdemonstrateahighvolumeofsalesintheirchosenmarkets
(thatis,morethan30%ofnewbusinessbypercentagecomesfrommorethanoneindustry,andmore
than50%ofnewsalescomefromsalesintothebroaderinstalledcustomerbase).Theyunderstandtheir
clients'evolvingneeds,yettheymaynotleadcustomersintonewfunctionalareaswiththeirstrong
visionandtechnologyleadership.TheyfollowtheVisionaries.
Challengersoftenhaveastrongmarketpresenceinotherapplicationareas,buttheyhavenot
demonstratedaclearunderstandingofhowtowinnewbusinessfortheCRMCECmarketoutsideofthe
installedbase.Theymaynotbewellpositionedtocapitalizeonemergingtrends.LackingaSaaS
architectedcloudmodel,theproductand/orvendorthatmayhavefulfilledotherLeadercriteriamaybe
foundintheChallengersquadrant.ThevendorsintheChallengersquadrantmaynothaveastrong
worldwidepresenceordeploymentpartners.Often,theirproductdevelopmentissplitamongmultiple
offerings.VendorsintheChallengersquadrantcandemonstrate$50millioninsalestocustomersduring
thepastyear.

Visionaries
Visionariesareaheadofpotentialcompetitorsindeliveringinnovativeproductsanddeliverymodels.They
anticipateemerging/changingcustomerserviceneedsandmoveintothenewmarketspace.Theyhavea
strongpotentialtoinfluencethedirectionoftheCRMCECmarket,buttheyarelimitedinexecutionor
demonstratedtrackrecord.Typically,theirproductsandmarketpresencearenotyetcompleteor
establishedenoughtochallengetheleadingvendors.

NichePlayers
NichePlayersofferimportantproductsthatareuniqueCRMCECfunctionalitycomponents,orofferings
forverticalorgeographicsegments.Theymayoffercompleteportfolios,butdemonstrateweaknessesin
oneormoreimportantareas.Theyalsocouldberegionalexperts,withlimitedabilitytoextendglobally.
Theymaybefocusedeitheronsupportingasmallnumberoflargeenterprisesoralargenumberofsmall
tomidsizebusinesses.

Context
Customersupportcontinuestobeinconsistentasthecustomermovesfromoneinteractionchannelto
another.DuringaseriesofclientinterviewsintheU.S.,Europe,China,JapanandAustralia,weasked
businessleaderswhatpercentoftheircustomerinteractionswereonmobiledevices.Thestandard
answerwasbetween30%and40%.Wethenfollowedupwiththequestionofwhatpercentoftheir
customerserviceandsupportinteractionswereonmobiledevices.Thestandardanswerwasbetween5%
and8%.Thisshowsagapof600%to800%betweenmobileinteractionsandadequatesupportforthat
channel.Somuchforomnichannelormultichannelconsistency.
Tosupportcustomers,someinteractionswillremainhumanassisted,whilefarmorewillbeautomated,
andsomewillrequirecustomerselfservicethroughsearchtoolsorsocialmediachannels.The
establishedbusinessapplicationsfortheCECfunctionarelargelyobsolete,becauseoftheirclumsyuser
experienceacrossdevicesandchannels.Theirsupportofthemobilecustomer,orthecustomerpreferring
asocialmediaengagementasapartofacustomerserviceoffering,isoftenmediocre.
ManyCECvendorshavesimplisticandrestrictedofferingswithinflexibleconfigurationrulesand
proceduresthatgoverntheinput,retrievalandflowofdataandinformation.Thisisespeciallytruefor
businesseswithmultiplesupportorganizationalstructures.Mostsupportcollaborativeinteractionspoorly.
Despitethehighvalueofthesesystems,theyhavefailedtoevolvetoincorporatenewideas,suchas
socialexperiencedesignconcepts,intocustomerinteractionapplicationsforcustomerservice.Without
collaborationcapabilities"baked"intothesoftware,alongwithdataanalyticsthatenablevisualizationof
thecustomersandtheirneeds,interactionamongemployeesandbetweenemployeesandcustomersis
limited,andbestpracticesarehardtocaptureorsuggest.
Themajorvendorsdevelopingcustomermanagementsoftwarenowseetheeconomicvaluein
rearchitectingtheirsoftwareforthesocialexperience,withOracleasaleadingexample.Itisawareofthe
innovationsbroughtonbycommunicationssoftwareandsocialsoftware,andhasintegrateditsproducts,
withseveralothervendorsfollowingthesamepath.Theyunderstandthatthesocialrevolutionin
softwarewilladverselyaffectsalesoftheircoresystemsduringthenextfiveyears.Bypursuingatacticof
acquisitionandintegration,Oracle,SAPandSalesforcearemakinggoodprogress,whereasmanyother
vendorscoveredinthisMagicQuadrantlagbehindininnovationinthisarea.
Organizationsarerarelyabletomigratefromanoldsystemtoanewoneiftheyhavecomplexbackend
processes.Morethan750companieswehavespokenwithhavedemonstratedthatitispossibletotake
anaugmentationapproach,bywhichmobile,analytics,andsocialtoolsandinternalsocialtoolsfor
collaborationandsharingareintegratedintotheCECenvironment.Workflowsandrulesarewritten,
oftenintheCRMsystem,andpassedtothesocialstageformorecomplexdeploymentsasexperienceis
gathered.ThisisthereasonthatGartnerispressingtheconceptoftheCRMCECasaseamlessly
integratedsolutionthatembracessocialmediaengagement.
AsCECsuiteswithmorecompleteanalyticscapabilitiesandbettermobilecentricdesignsreachthe
marketin2016andbeyond(perhapsfromSalesforce,PegasystemsandOracle),thebusinesscasefor
migratingtothesenewtoolswillbeeasiertodemonstrate.Thereareindustryspecificandgeography
specificconsiderationsthatwillcausebusinessestoaccelerateinvestmentsininnovationinsocialcentric

interfaces.TheU.S.isstillaheadofEuropeandothergeographiesinsocialmediaforbusinessprocesses,
althoughthisisnotthecaseformobile.Hightech,mediaandentertainment,retailandconsumergoods,
banking,andtelecommunicationsprovidersneedtomoveforwardduring2015.Themining,chemicals,
industrialmachines,andoilandgasindustriesareunderfarlesspressuretoevolve.

MarketOverview
Twofactorscomeupregularlyasissuesforbuyersthatreflectthecomplexityofthismarket.
Thefirstisthecomplexityoftheinformationrequiredtosupportthecustomer,andthecomplexityofthe
businessrulesorprocessesthatformthestepsinaninteraction:
Forsimplercustomerserviceprocessmodels,thevendorsthatdominateGartner'sconversations
withbuyersonthisMagicQuadrantareSalesforce,Microsoft,Oracle(ServiceCloud),Zendesk,
EpticaandSugarCRM.However,weregularlyalsorecommendforconsiderationAmdocs,Freshdesk,
Salesforce'sDesk.com,TalismaandZoho.
Formorecomplexbusinessrulesandprocesses,wetendtodiscussPegasystems,SAP(SAPCRM),
CRMNext,bpm'online,VerintSystemsandmplsystemsinthisMagicQuadrant,butalsoOracle
(Siebel),InforandVerticalSolutions.
Formorespecialistfunctionalityinsocialcustomerengagementandselfservice,wealsoregularly
recommendCoheris,Conversocial,Dimelo,eGainandMoxieforusebycustomerserviceagents.
Thesecondistheavailabilityandapplicabilityofcloudbasedsolutions.AsadeliverymodelforCRMCECs,
SaaSisbeingacceptedandpreferredbymanyorganizations.However,inmanypartsoftheworld(such
asEasternEurope,India,SouthAmericaandChina),cloudbasedcustomerservicebusinessapplications
arenotyetthepreferredmodelduetodataresidencyandlatency.Theseinclude:
Locationsinwhichthereisgreatercautionduetofearsregardingdataprivacy,latencyand
applicationavailabilityforexample,CentralandEasternEurope,manypartsofAsia(suchasIndia
andChina),andSouthAmerica
National/federalgovernmentsandhealthcareorganizationsinwhichregulationsinhibitpenetration
Morecomplexenvironmentswithhighcallvolumes,hightransactionvolumesandrealtime
integrationwithlegacysystems,whichcanslowperformance
Inourevaluations,wepointoutwhenweforeseeapotentialchallengeforaproductbasedonthese
limitations.
Throughthesecondhalfof2016,completecustomerservicesolutionsdeliveredintheSaaSmodelwill
continuetobemostprominentintheB2B,lowvolumecall/contactcenter,orinnonprocessintensive
B2Ccenters.Through2016,fewerthan35%oforganizationswillselectSaaSforcomplexbusiness
processsupport.
However,by2016,asmoreapplicationsarebuiltinacloudbasedmodel,andEUandAsiandatacenters
aredeployedbythevendors,SaaSwillemergeasacriticalselectionfactorinallgeographiesandalllevels
ofprocesscomplexityoftheCRMCEC.In2014,fornewprojects,morethan45%ofthedeployments
worldwidewereSaaSbased,andatleast85%ofCECsusedsomeformofSaaSapplicationaspartofthe
overallsolution.Thisisoftenforaspecificcapability,suchasknowledgemanagement,feedback
management,orWeborvideochat.

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