What’s the Difference Between UCaaS vs. CCaaS?

January 30, 2024 11 min read

Dominic Kent

Dominic Kent

As companies increasingly transition to cloud-based business communication solutions, understanding the differences between UCaaS vs CCaaS is important. 

If you’re in the market for a new solution to replace your PBX, call center software or both, these two essential tools can have a significant impact on your organization’s efficiency and customer satisfaction.  

In this post, we’ll compare Unified Communications as a Service and Contact Center as a Service, exploring their differences and similarities through their features, benefits, and use cases. 

What Is UCaaS?

UCaaS stands for Unified Communications as a Service.

Let’s break this acronym down for you:

  • Unified Communications (“UC”) is a suite of communications services such as phone, chat, and video conferencing. It enhances productivity and provides ways to interact across different communication channels.
  • As a Service (“aaS”) is the delivery model for cloud service and software. You may have a physical phone system stored in your office or server room. This is called “on-premises” and is the common/legacy way to deliver phone services for your business. Unlike Software as a Service (SaaS), UCaaS is exclusive to communication tools and APIs.

Instead of buying a physical phone system, UCaaS software is delivered via the cloud. This way, you can subscribe to the features and services you need. 

Instead of installing equipment you might one day use, you get access to everything you need now. Adding on or upgrading is always possible, in addition to upgrading to a different pricing tier.

Think of it as the shift from videotapes and DVDs to Netflix and Disney+. That’s “as-a-service.” When combined, you get UCaaS solutions. Unified communications are delivered like a subscription model.

For example, Nextiva’s UCaaS platform includes features like:

There’s no single that makes UCaaS attractive. It’s the fact that all these features come together. That’s the unified part.

Examples of UCaaS

You may already be using unified communications solutions in the form of your business phone system.

Common examples of UCaaS solutions include:

These are all examples of phone systems that may have unified communications components. But they don’t all offer UCaaS services. 

Some UCaaS vendors include those with a past in unified comms, but others are cloud-first. It’s those that specialize in the as-a-service model that offer scalable, flexible solutions that can quickly adapt to your changing business needs.

Cloud-first UCaaS providers include:

What are the benefits of UCaaS?

The benefits of UCaaS involve increased productivity and a better way of communicating. This includes both internal and external communications:

  • From an internal point of view, everyone uses the same app to chat, call, and host meetings. Within this app, you get features (like screen sharing and call recording) that take your phone system from a call maker to a productivity enabler.
  • From an external point of view, UCaaS upgrades existing phone system functionality to include modern cloud features. Businesses are able to field more calls and have better visibility of their communications estate.

Benefits of cloud options for unified communications (UCaaS) include:

What Is CCaaS?

CCaaS, which stands for contact center as a service, is a software solution that connects all customer contact channels into a single interface. CCaaS is the next step up from call centers and allows you to communicate with customers via phone, SMS, or chat, all from one platform. 

Much like a virtual call center, your agents get an interface to make, receive, and manage calls. On top of this, they also get access to other contact channels like email, web chat, SMS, and social media.

This is called multichannel — which means you can service customers on the channels they use rather than forcing them to call you. 

Why is this important? People are busy, they have preferences, and they want to reach you in the most convenient and a hassle-free manner.

That may still be a traditional phone call. But that’s not to say the current and next generations will agree. When it comes to a preferred communication channel for their customer service inquiries:

Source

Diversifying your contact channels is a no-brainer. And that is precisely what multichannel cloud contact centers do.

For example, Nextiva’s cloud contact center helps enhance customer service. There’s no compromise regardless of the channel a customer interacts on. As smart routing technology combines with multi-channel contact handling, an agent does not experience extra hold time.

Popular CCaaS features

What are the benefits of CCaaS?

Much like the benefits of UCaaS, CCaaS solutions introduce better and more productive ways to communicate, but with CCaaS, there’s a focus on agent-to-customer communication.

  • From an internal perspective, CCaaS platforms enhance operational efficiency and productivity by streamlining workflows and automating tasks, while also offering scalability and cost savings by reducing the need for physical infrastructure.
  • From an external perspective, they improve customer experience through personalized and efficient service, and provide detailed analytics, aiding in understanding and meeting customer needs more effectively.

Benefits of CCaaS platforms include:

The history and evolution of CCaaS

Contact Center as a Service has evolved over time due to technological advancements and the ever-increasing demand for cloud-based solutions.

In the past, traditional contact centers relied on on-premises infrastructure and hardware, which limited their scalability, flexibility, and cost-effectiveness. However, as technology progressed, the concept of CCaaS emerged to address these challenges.

The evolution of CCaaS can be attributed to the advancement of cloud communications technology. Cloud-based solutions have transformed various industries, including communication and customer service, by offering enhanced capabilities and streamlined operations.

As the link between UCaaS and CCaaS grew stronger, further advancements in CCaaS were witnessed. UCaaS, another cloud-based solution, focuses on integrating various communication channels, such as voice, video, messaging, and collaboration tools. This integration with UCaaS providers enables contact centers to offer a seamless and holistic customer experience, leading to improved customer service delivery.

The history and evolution of CCaaS showcase a shift from traditional on-premises contact centers to cloud-based solutions. With the continuous pace of technology, CCaaS is expected to continue evolving, further enhancing contact center operations and driving higher customer satisfaction in the future.

Nextiva acquired Thrio, an all-new contact center platform that brings with it a ton of new features and capabilities, such as AI contact center functionality, sentiment analysis, extensive integrations, a global footprint, among others.

The Differences Between UCaaS and CCaaS

In a nutshell, the difference between UCaaS and CCaaS solutions is that:

  • UCaaS provides a suite of communication tools like phone, messaging, and video conferencing for internal business communications.
  • CCaaS is focused on enhancing customer interactions with a business through communication channels like live chat, social media, voice calls, and SMS.

Here’s a high-level overview of the differences between UCaaS and CCaaS.

UCaaS (Unified Communications as a Service)CCaaS (Contact Center as a Service)
Primary FocusConnecting team members
(internal business communications)
Connecting customers to a business
(external business communications
Key FeaturesVoice calling, messaging, video conferencing, file sharingAdvanced call routing, ticketing system, analytics tools, customer self-service
GoalImprove collaboration and productivityOptimize customer interactions and support
IntegrationIntegrates with business tools and platformsOften integrates with UCaaS and CRM systems
Best ForBusinesses looking to modernize their communication infrastructureBusinesses aiming to improve service quality, efficiency, and customer satisfaction

5 Key Differences of UCaas and CCaaS

To help you better understand the differences between UCaaS and CCaaS, here are five key differences described in more detail.

1) UCaaS focuses on internal communication services

While also including PSTN connectivity, UCaaS platforms streamline your internal communications processes.

Long gone are the days when you call a colleague, leave a voicemail, and not hear from them until you bump into them in the break room. Instead of losing time trying to get hold of them, you can check their presence status (available, busy, DND, offline) before calling them.

Or if you don’t need their voice, send them an instant message. This could be to check if they are available or it could be because you can get what you need without disrupting their workflow.

When real-time communication is needed, you can turn that instant message into an audio or video call.

NextivaONE - Business Communication Platform with 10DLC Support

2) CCaaS focuses on communication with the customer

CCaaS helps streamline workflows to move your customers down the path of least resistance and serve them where they hang out. 

While speed alone is not the goal of any customer service team, when you can solve problems efficiently, you provide a better customer experience.

Sometimes, you can use UCaaS solutions to run a basic call center if you only need a call queue. Callers can choose which option they need and get routed through to a user configured in that call group. But when you’re offering several inbound channels to contact you, CCaaS comes into its own.

Instead of only offering a phone number for your technical support team, CCaaS enables you to offer live chat on your website, customer support emails from a skilled agent, and direct contact via the social media channels they use.

People are busy. Nobody wants to wait in a queue when they have an easier option.

3) CCaaS can be omnichannel

We’ve mentioned multichannel a few times. So, what’s an omnichannel contact center

Here, we’re talking about ensuring that cross-channel conversations get connected. No matter which channels your customers use or whether they switch between several, all interactions and information gets shared between agents.

This means there’s no longer the scenario where someone chats on your website, emails to follow up, and then calls the next day, but the agent doesn’t have track of the previous conversation.

Some service providers only support multi-channel. And while multi-channel may be suitable for some businesses, serious CCaaS providers will offer both multichannel and omnichannel contact center options.

Omnichannel vs. Multichannel Contact Center

4) UCaaS tends to be ready to use out of the box

Aside from putting phone numbers and names together, UCaaS platforms are plug-and-play. Except there is rarely anything to plug in! 

Unless you want a handset, you just download to your desktop or mobile app, and your software is pre-loaded with call functionality and collaboration features.

CCaaS, on the other hand, sometimes needs custom configuration so you can tailor available channels and call routing to streamline your customers’ journeys. When you spend time finding the optimum path, customers have a better experience. 

5) CCaaS offers unlimited customization

When you first implement a CCaaS solution, it doesn’t have to be your final answer. What you configure today might not be exactly how your customers want to access your teams. 

And that’s okay. Each customer interaction provides data that helps you decide what to do next and what to change.

The best CCaaS software includes automation and integrations that can help agents serve customers better. The best customer experience is the one that is continuously improved.

When you set specific KPIs, reports show what you need to change and where workflows are becoming congested.

Stats about UCaaS and CCaaS

The Similarities Between UCaaS and CCaaS

As both are communication technologies and both get deployed via the cloud, there are many similarities between UCaaS and CCaaS.

Both UCaaS and CCaaS include the following:

With those similarities in mind, the big question is whether you need UCaaS or CCaaS.

Do You Need UCaaS or CCaaS?

Deciding whether you need UCaaS or CCaaS isn’t quite like choosing red or blue. There are several factors that come into play. 

As you were reading this blog post, you will have identified which components are most needed in your business.  Here’s a handy break-down of both:

Choose UCaaS when:Choose CCaaS when:
Your focus is streamlining internal communicationsYour focus is improving your customer’s experience
You want to collaborate with peers betterYou need to upgrade your call center to multi-channel
You don’t field queries from customersYou don’t need to improve internal communications

In all likelihood, you might need both. But does that mean you need a separate UCaaS and CCaaS solution? It might. But if you choose the best solution in each category, you may end up with disparate solutions that don’t talk to each other.

Nextiva is unique in that it offers a single source for both UCaaS and CCaaS platforms.

When you integrate UCaaS and CCaaS, everyone benefits. By combining apps, your frontline agents have access to subject matter experts, and all data gets passed between apps. There’s no disconnect, and both internal and external communications improve together.

The ultimate communications platform

Discover why top brands scale their orgs faster with UCaaS and CCaaS together.

FAQs

What are the differences between CPaaS and CCaaS?

CPaaS (Communication Platform as a Service) differs from CCaaS (Contact Center as a Service) primarily in its implementation and usage.

CPaaS provides APIs, allowing businesses to integrate new communication functions directly into their existing applications.

CCaaS offers a complete, ready-to-use software application that includes various communication features.

For example, a company using CPaaS might integrate text messaging functionality into their existing customer service app using an API. This allows them to send text messages directly through their app. On the other hand, a business using CCaaS would use a pre-built software platform that already includes SMS, call handling, and other communication features, without needing to integrate these into an existing system.

What are the differences between CCaaS and on-premises contact centers?

Cloud-hosted contact centers offer favorable pricing, scalability, and feature capabilities that on-prem contact center software can’t deliver. Here are some facts to consider:

– COSTS: Full CCaaS costs, on average, $1,356 per agent per year, while on-premises contact center software costs $2,104. CCaaS offers cost savings compared to on-premises solutions.
– CHANNELS: On average, organizations with cloud-based contact centers have 6.31 channels, while on-premises contact centers have 4.71 channels. CCaaS provides more interaction channels compared to on-premises solutions.
COMPLEXITY: CCaaS helps organizations manage IT investments and hardware by having service providers handle these assets. This eliminates the need for organizations to allocate time and resources to managing and maintaining them. CCaaS facilitates compliance by allowing for easier implementation of hybrid architectures alongside existing, on-premises contact centers. This integration helps organizations adhere to compliance requirements.
– MANAGEMENT: Cloud contact centers offer a more user-friendly interface and easier administration compared to both hardware and hosted contact centers. The cloud-based nature of CCaaS also provides increased flexibility in terms of features and upgrades without the need for extensive hardware changes.

How are UCaaS and CCaaS used by businesses?

UCaaS has much larger adoption and usage for its vast functionality for most people. It’s typically used for inter-office communications between employees. It’s particularly popular among businesses seeking to improve collaboration and streamline communication processes. It integrates various communication tools such as VoIP, video conferencing, instant messaging, and email into a single platform, facilitating collaboration among employees.

CCaaS has seen a rapid adoption among businesses focused on customer engagement and support, especially in industries like retail, banking, and telecommunications. CCaaS is primarily used in customer service settings. It provides tools for call centers like interactive voice response (IVR), call routing, and analytics. It’s tailored for managing customer interactions.

ABOUT THE AUTHOR

Dominic Kent

Dominic Kent is a content marketer specializing in unified communications and contact centers. After 10 years of managing installations, he founded UC Marketing to bridge the gap between service providers and customers. He spends half of his time building content marketing programs and the rest writing on the beach with his dogs.

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Small- and mid-size businesses must make smart choices about their contact center type and provider. Having the correct contact center setup will ensure great customer service experiences while eliminating excess technology costs that could slow your business growth. 

In this article, we’ll walk you through the differences between cloud and hosted contact centers to help you make the right choice for your customers and your business.

What we’ll cover: 

What is Contact Center Software?

Before we find out what a hosted and cloud contact center are, it’s important to clarify that both models run contact center software.

Contact center software is an omnichannel platform that allows your customers to communicate with your business in multiple ways, including phone, email, web chat, video chatting, text messaging (SMS), and social media. On your end, the contact center software captures all these contact channels in one software platform. 

Depending on the software provider, you also may have API access for other software integration, and dashboards for supervisor control.

Now that we know how hosted and cloud contact centers are similar, let’s learn more about each model and understand how they are different.

A hosted contact center requires a physical server and a third-party service provider hosts the software. Versus a cloud contact center, which runs on virtual servers and is easy to scale up during high-demand periods.

What is a hosted contact center?

A hosted contact center  is a communications solution hosted at your service provider’s physical location instead of on your premises. 

With a hosted contact center, your service provider’s physical location becomes the epicenter of your IT infrastructure, meaning that your agents only need their laptops, headsets, and an internet connection to be effective.

It is important to note that it is still possible for companies to carry significant IT costs and responsibilities in a hosted contact center model, such as updating, patching, and tweaking your contact center software and its integrations. 

A hosted contact center  is a communications solution hosted at your service provider’s physical location instead of on your premises. Pros - no onsite server, less expensive than owning a physical server. Cons - still relies on a physical server, less resistance to growth & ongoing maintenance

What is a cloud contact center?

A cloud contact center moves beyond the hosted contact center model to fully leverage the capabilities of cloud computing. There is no need for direct network connections or client-side infrastructure; virtual servers are used, along with Voice over Internet Protocol (VOIP) for calls. 

Plus, there are no dedicated physical servers. Your company will have access to the full range of available server space when needed, allowing you to scale up in high-demand periods without carrying excess costs during less-busy times. And because you aren’t tied to physical server locations, you enjoy a level of business continuity resilience that on-premises and hosted contact centers do not offer.

A cloud contact center moves beyond the hosted contact center model to fully leverage the capabilities of cloud computing. There is no need for direct network connections or client-side infrastructure; virtual servers are used, along with Voice over Internet Protocol (VOIP) for calls.

What are the cost and maintenance differences between hosted and cloud contact centers?

While hosted and cloud contact centers will both save you money over the traditional on-premises model, it is essential to understand that they come with different fixed and maintenance costs.

Hosted contact centers relieve you of onsite server hosting, but you are still tied to physical servers. Suppose you have migrated from legacy on-premises software that were not originally designed to operate in hosting environments. In that case, you may expect to have dedicated resources on your IT team ready to deal with ongoing maintenance, patches, and adjustments.

But, hosted contact centers can be less resilient since they do rely on specific servers and direct network connections. 

Cloud contact centers, on the other hand, avoid this problem by provisioning you access to whichever virtual servers are online and functional.

Why On-Premises Contact Centers Are Bad for Business

For a long time, companies were forced to operate physical ‘on-premises’ call centers to support their customers. This could present real cost challenges to growing businesses because it requires serious investments in real estate, IT infrastructure and staff, PBX phone systems, etc. 

Not only was this model expensive, but it also was virtually impossible to scale up or down quickly to meet sudden changes in demand, such as increased call volume. And it left company contact centers exposed to business continuity risk in the event of natural disasters or other localized events. This led to the evolution of both hosted and cloud contact centers.

Migrating from a hosted contact center to a cloud contact center

If you are considering upgrading from a hosted contact center to a cloud model, there are a few key things to keep in mind.

First, your cloud center software will no longer be running on dedicated physical servers. Cloud architecture and security present different challenges than traditional network security. Your IT team may need training or outside expert advice to ensure they are equipped to operate in a fundamentally new model.

You will also want to understand your deployment options. While a hosted contact center has already removed you from the traditional on-premises environment, you may still be operating elements of your contact center at your physical office locations. Make sure to evaluate how to best leverage the cloud’s flexibility and scalability features to save the most money in the long term.

Finally, make sure you understand that not all hosted or cloud contact center solutions are alike. You may find that your current operating model matches most closely to the Contact Center as a Service (CCaaS) cloud platform, in which customer services and sales professionals are the primary team members leveraging your call center technology. 

But you may want to use your migration as the opportunity to switch to the broader Unified Communications as a Service (UCaaS) model, in which you unite all of your business communication tools across the firm and greatly enhance your collaboration capabilities.

Next Steps to Upgrade Your Business’ Contact Center Ecosystem

Hosted and cloud contact centers will offer significant cost and scalability advantages over the legacy on-premises model. Evaluate both models carefully to determine the best fit for your business. 

If you’re ready to evaluate contact center solutions that will fit your business, reach out today to book a demo or talk to an expert.

ABOUT THE AUTHOR

Mark Greer

Mark Greer is a former Product Marketing Manager for Nextiva. His background in the IT sector includes CCaaS, UCaaS, DBMS, business intelligence/data warehousing, endpoint management, and directory technologies. Mark likes traveling the South Pacific, scuba diving, off-roading, and exploring Western rivers with a fly rod in-hand.

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