Businesses all around the world have two key objectives Maximizing Revenue and Minimizing Costs. To achieve these objectives, organizations need to make smart decisions on how they allocate their resources to get the most out of their investments. Decisions related to investment in technology are crucial as they account for almost $1.8 trillion globally, which is a huge amount. These decisions affect the flow of revenue and largely impact the bottom line in the long term.
The concept of TCO relates to the total cost of acquisition and operating costs. This concept when applied to Customer Interaction Management (CIM), becomes even more relevant as most companies are trying to reduce the operating costs in this sphere. Operating costs broadly comprises of costs related to both Hardware and Software-based solutions. Organizations that invest in Hardware-based solutions suffer recurring time and monetary costs in the form of upgrades. These upgrades have a considerably long cycle and pose disruption to the day-to-day operations. However, in case of Software-Based solutions, these upgrades are swift and easy to deploy with minimal disruption.
Now letâ€™s have a closer look at the major disadvantages of Hardware-Based legacy solutions:
High Initial Investment: Multiple boxes need to be purchased which require a huge capital investment for a complete setup.
Extensive Training Required: The solution comprises of intricate hardware devices that require expert knowledge and specialized training.
Complex Scalability: Scaling up requires additional licensing, time and manpower costs which make the entire process complex.
Limited Shelf-Life: Hardware-based legacy solutions are subject to wear and tear and have a limited shelf-life.
High AMC Cost: Being proprietary in nature, the Hardware-Based solutions come with an intrinsic high maintenance cost.
Slow Turnaround Time: Choosing a Hardware-Based solution comes with End-of-Life constraints, and moreover, customizations in Hardware-Based solutions feature insane investment of time and money.
Organizations are becoming increasingly baffled and helpless in thinking themselves out of this cost-imposing, Hardware-Based solutions behemoth. The good news is that Software-Based solutions are here to help. With processing power becoming easy on cost, possibilities in software are getting even bigger. With these solutions, not only can organizations reduce the TCO but at the same time increase productivity. So, the next time you are making a purchase decision, do look at the hardware and software paradigm more closely to make a sound decision which could help your organization in the best way possible.