How Does Cloud Contact Center Work? Pros and Cons of a Cloud System

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Cloud Contact Center Solution

Cloud Contact Center Solutions are one of the big things nowadays. Many inbound and outbound call centers are moving their on-premises call center software solutions to the cloud platforms. In today’s fast-paced business landscape, customer service plays a pivotal role in maintaining a competitive edge. Cloud contact centers have emerged as a dynamic solution that leverages the power of the cloud to enhance customer interactions.

These virtual hubs facilitate communication between customers and companies, enabling efficient issue resolution, customer support, and relationship-building. Let’s dive into the mechanics of how cloud contact centers work and explore their benefits and drawbacks.

What is a Cloud Contact Center Solution?

A call center software solution that is hosted on one of the cloud hosting platforms is a cloud call center solution. It is the same as other call center solutions. The only difference is it is hosted on a cloud hosting platform.

How Does a Cloud Call Center Work?

As mentioned earlier, there is no major difference between an on-premise call center software solution and a cloud contact center solution. Thus, there is no huge difference in the operational model. Cloud contact center solutions can be used for both inbound and outbound call centers. It lets a call center run its normal operations with better features.

A Cloud Contact Center Solution is a technology platform that enables businesses to manage their customer interactions and communications through various channels, such as phone calls, emails, chats, social media, and more. This solution operates over the internet and does not require physical on-premises hardware or infrastructure because it is hosted in the cloud. It offers a centralized system for handling customer inquiries, support requests, and interactions, providing a seamless and efficient way to engage with customers.

A cloud contact center, also known as a cloud-based call center or virtual contact center, operates on the principle of leveraging cloud technology to manage and streamline customer interactions. Instead of hosting all the necessary infrastructure on-premises, cloud contact centers utilize remote servers and software, accessible via the internet. This setup offers several advantages over traditional on-site call centers.

What are the Pros and Cons of a Cloud Contact Center System?

We will cover the pros and cons of cloud contact center solutions compared to on-premises call center software.


1. Quick to set up

The significant advantage of using a cloud contact center system is that it can be set up within a day or two if your call center software provider is proactive. Unlike on-premises call center solutions, you will not need to buy servers and configure them before setting up the best call center software. The cloud hosting providers offer ready-to-use space. You can set up a call center software system within the least time.

2. Reduced expenses

Since the call center software will be hosted in cloud space, you won’t need to buy hardware and servers. You will also not need physical space to set up servers. This will reduce the cost of setup. It will also reduce expenses. 

3. Highly scalable

The cloud contact center solutions are highly scalable and quick to scale up. You will not need to wait to get physical setup as you would need in the case of on-premises servers. A majority of cloud hosting platforms support scalability within a few hours. This can help you speed up your operations and take advantage of having a completely scalable solution.

4. Cost Efficiency:

Traditional contact centers require significant upfront investments in hardware, software, and maintenance. Cloud contact centers eliminate these costs, as businesses only pay for the call distribution services they use on a subscription basis.

5. Flexibility:

Agents can access the contact center platform from anywhere, enabling remote work and 24/7 customer service coverage. This flexibility contributes to a better work-life balance for agents.

6. Advanced Features:

Cloud contact centers offer a range of advanced features, such as interactive voice response (IVR), call recording, sentiment analysis, and AI-powered chatbots. These features enhance the quality of customer interactions.

7. Rapid Deployment:

Setting up a cloud contact center is quicker compared to traditional on-premises systems. This is crucial for businesses that need to adapt swiftly to changing market conditions.


1. Unexpected expenses

One of the major issues of using a cloud call center solution is you may need to face some unexpected expenses. Cloud space needs to be optimized, or else it can add up to the total costs. 

2. Legal issues

Some countries do not allow the usage of cloud call center solutions. As per the telecom laws in some countries, any business or inbound or outbound call center needs to use an on-premise call center software system.

3. Dependence on the Internet:

Cloud contact centers rely heavily on a stable Internet connection. Any disruption can lead to service outages and impact customer interactions.

4. Security Concerns:

Storing customer data in the cloud raises security and privacy concerns. Companies must ensure robust data encryption and compliance with relevant regulations like GDPR.

5. Limited Customization:

Some businesses with highly specific needs might find that cloud contact center solutions have limitations in terms of customization.

6. Ongoing Costs:

While cloud contact centers eliminate upfront hardware costs, the ongoing subscription fees can accumulate over time.

7. Integration Challenges:

Integrating cloud contact center platforms with existing systems can sometimes pose challenges, leading to compatibility issues.

Key features of a Cloud Contact Center Solution include:

  1. Multi-Channel Communication: The solution allows businesses to interact with customers through various communication channels, ensuring a consistent and integrated experience.
  2. Automatic Call Distribution (ACD): Incoming calls are intelligently routed to the most appropriate agent based on predefined criteria, such as skillset or queue length.
  3. Interactive Voice Response (IVR): An automated system that prompts callers to select options using their keypad, directing them to the appropriate department or information.
  4. Skill-Based Routing: Calls, messages, or inquiries are directed to agents with specific skills or expertise to ensure customers are connected to the most suitable representative.
  5. Real-Time Monitoring and Reporting: Supervisors and managers can monitor ongoing interactions, track performance metrics, and generate reports to assess the contact center’s efficiency and effectiveness.
  6. Call Recording and Quality Monitoring: Conversations can be recorded for training, compliance, quality assurance purposes, and live call monitoring solutions. Supervisors can review interactions in real-time and provide feedback to agents, ensuring continuous improvement in customer service deliver
  7. Integration with Customer Relationship Management (CRM) Systems: The solution can integrate with CRM software to equip agents with relevant customer data and history, enabling them to conduct personalized interactions.
  8. Remote and Flexible Work: Cloud-based solutions allow agents to work from different locations, enhancing flexibility and disaster recovery capabilities.
  9. Scalability: Businesses can easily scale up or down based on demand, adding or reducing agents and resources as needed.
  10. Analytics and Insights: Contact centers can gain insights into customer behavior, agent performance, and operational trends through data analysis.
  11. Outbound Campaign Management: Businesses can run outbound campaigns, such as marketing promotions or surveys, and track results.
  12. Omnichannel Experience: Customers can seamlessly switch between different communication channels while maintaining continuity in their interactions.


Cloud contact centers are popular, but there are pros and cons to consider before getting one. We can help you choose the best call center software and hosting platform for your needs. Contact us for more details.

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