Last week, Microsoft sat staunchly on the sidelines of the CCaaS space. Its Dynamics 365 for Customer Service solution had little momentum.
Moreover, updates to the solution it launched in November 2021 hardly came thick and fast. Instead, the offering remained an anemic, limbless version of the platforms provided by stalwart CCaaS providers.
Indeed, this uninspiring "test the water" launch into the CCaaS arena mirrored its entrance into the UC market in 2017. At first, Microsoft Teams lagged, but update upon update pulled the solution to the market’s precipice.
Yet, Microsoft seemingly changed tact, releasing few updates, waiting in the wings. Why? Likely because the contact center is critical to many brands, being their first line of defense and a brand differentiator.
The company – therefore - had a choice: go all-in or all-out. Its acquisition of Nuance suggested the former, as did murmurs of Microsoft preparing to "aggressively" innovate in the space.
As such, many analysts predicted a big-bang launch that would redefine Microsoft’s status as a contact center vendor. This week it happened.
Initial Impressions of the Solution
The current offering is impressive. No, it is not as well-rounded as the current industry leaders - which include Genesys, NICE, and Talkdesk, according to Gartner – but it offers building blocks that pack a punch.
By embedding Nuance conversational AI and authentication technologies, Microsoft Teams collaborative features, and Microsoft Power analytics capabilities, among many other features, the sum of its parts is striking.
Sharing his thoughts, Tom Arbuthnot, Microsoft MVP and Co-Founder of Empowering.Cloud, exclusively told CX Today:
Microsoft Digital Contact center is not a product or SKU, but more of a "playbook" or reference architecture of how you can leverage and combine Microsoft services to either augment your existing contact center or provide a true end-to-end omnichannel contact center experience.
"Of course, Microsoft would love to win end to end, but it is also totally happy to augment with existing contact center solutions where it makes sense."
Testament to this, Microsoft Inspire event speakers banged the drum that this solution would drive "infrastructure simplicity, flexibility, and innovation."
By repeating this message, Microsoft is seemingly aware that it will not take over the CCaaS space immediately. Instead, it will look to establish a hefty market presence by partnering with the likes of Genesys, NICE, and Avaya.
As Jeff Comstock, Vice President at Microsoft Dynamics 365, said at Microsoft Inspire:
Microsoft has a long heritage of being a platform company, and we are committed to being open, which provides ample opportunities for partners to add value to our services.
The 700 connectors The Microsoft Digital Contact Center Platform now boasts support this notion, enabling partners and customers to connect apps, data, and devices to the cloud.
Systems integrators may also benefit from full stack development, low-/no-code customization, and out-of-the-box integration options. Companies can then mix and match solutions to create unique enterprise ecosystems that drive better business and customer outcomes.
Many will likely take this option instead of a complete Microsoft CCaaS migration. Why? Because there are notable gaps within the current offering.
For example, the launch mentioned nothing of quality assurance (QA) and workforce management (WFM) technologies, now fundamental in the makeup of most modern contact center operations.