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Business owners looking to build or expand their call center operations often face a peculiar technological paradox.  SIP has cut the costs of voice solutions in half. Auto dialers have made dialing and connecting agents with leads nearly effortless. Today’s PBX software has provided a level of analytics that owners could have only dreamed of a generation ago, when the only data the telecoms offered was the monthly long-distance bill. Premium dialer routes make the growing VoIP solutions even more attractive. Not only can call centers switch from an on-premise PBX to the cloud, but they can now choose a hosted dialer.

So why do businesses find it difficult to launch these efforts? Because with this technology comes options. Lots and lots of options. Each option requires a decision by the conscientious call center manager looking to minimize risk and maximize reward.

With auto dialers, many are being presented with the option of selecting a hosted dialer. But what is a hosted dialer? We’re glad you asked.

What is a Hosted Dialer?

In a previous post, Predictive Dialer: Explain it! How Does it Work?, we introduced you to the methods of outbound calling, including the broad classification of auto-dialers, such as Preview, Progressive, and Predictive dialers. As you research your options, you may find that some companies use the terms Hosted and Predictive interchangeably. However, a hosted dialer solution simply means that the software is cloud-based (which is why they’re sometimes called cloud dialers), and that your team is accessing it through the Internet rather than purchasing a physical piece of hardware that needs to be installed on-site. While hosted dialers draw many small-to-midsized businesses because of the predictive dialing capabilities, they can also use preview or progressive dialing options, depending on their needs.

Along with dialing, hosted outbound dialers typically offer a menu of value-added features, such as:

• Campaign and list management
• Real-time call recording
• DNC compliance
• Historical reporting
• CRM integrations
• Drag-and-drop scripts
• Options for home-based agents

Netflix or Redbox?

For watching a movie at home, the choices have changed. In the 1980s and 1990s, Blockbuster was the undisputed king of the market, with over 8,000 stores scattered across the globe at its peak. Then its popularity plunged. Today, when a family is trying to decide what to watch, the choice often boils down to streaming something on Netflix or visiting the nearest Redbox kiosk. Understanding that difference will help you understand the key differences between a hosted dialer vs. an on-premise dialer.

Those who rent a movie using Redbox must have a DVD or Blu-Ray player to watch it. An on-premise dialer is similar because it is a hardware solution that companies purchase upfront and integrate with their phone system. Owners with a fixed budget and a desire for control over every aspect of their phone system may prefer to make the one-time purchase. They also must maintain it, and this requires a business to have the technical expertise to keep the system up and current.

Hosted dialers are more like Netflix since they can work with little more than a computer and Internet access. But, as it would have been nearly impossible to stream an HD movie during the dial-up era, hosted dialers can only thrive on a fast and reliable network. This requires a speedy and stable Internet connection.

Also, like Netflix, hosted dialers are subscription-based, so companies pay a low, monthly fee to access their services. One key benefit is the provider takes care of updates, including new features or security fixes.

The Rising Cloud

In the battle between Netflix and Redbox, Netflix is winning. While Redbox’s fortunes have declined since 2013, Netflix’s number of subscribers and annual revenue continues to grow, reaching nearly $9 billion in 2016. These trends show no signs of reversing, and the same is true for hosted dialers. Hosted dialers are growing in popularity, due to cost savings, lighter overhead, scalability, and flexibility. Business owners are growing more comfortable with someone else keeping the system running, while they focus on their business.

In a previous blog, Hosted Dialer vs. On-Premise Solutions: Key Differentiators, we addresed the pros and cons of choosing a hosted dialer vs. an on-premise dialer solution.

Looking for a powerful SIP solution for your contact center? We can help.

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