Magic Quadrant for CRM Customer Service Contact = Centers, 2008

The challenge during the next five years for business = buyers=20 interested in improving customer service in their contact = centers=20 will be to find software suppliers that understand that the = central=20 focus of CRM has changed from enabling the agent to enabling = the end=20 customer/consumer. The current generation of CRM application = providers in the customer service contact center space lags = user=20 needs. The major enterprise application providers excel at = commodity=20 tasks, such as product selection, order management, payment, = account=20 setup and basic support (see "Why Software Is Failing in CRM = Initiatives"). However, the most-pressing need for new = capabilities=20 revolves around:

Support of online communities of users=20
Extension of agent presence to online communities=20
Customer data integration=20
Integration of Web self-service into the agent desktop =
Adaptive analytical applications that understand = customer=20 intentions and customize services and interactions = accordingly=20
Providing agents with tools to search swiftly and = accurately=20 for action-oriented answers to customer questions =

For the third year in a row, customer experience and = customer=20 service are cited by CIOs as key business factors that will = drive=20 decision making during the next 24 months. We believe that = any=20 negative shift in the economic picture will exacerbate this = focus=20 because customer retention will require greater scrutiny. = The loss=20 of a profitable customer, or potentially profitable = customer, is=20 expensive and preventable. The contact center, which = integrates and=20 synchronizes post-sale customer interactions, is the = most-critical=20 flashpoint for the customer relationship. A contact center=20 integrates Internet interactions and call center = interactions, with=20 the goal of providing a consistent customer experience. Each = industry, business and organization has its own unique = customer=20 service processes and service channels, making it unlikely = that a=20 single software vendor will dominate any given industry. The = 2008=20 Magic Quadrant for CRM Customer Service Contact Centers = reflects=20 this reality.

Like all Gartner Magic Quadrants, the 2008 Magic = Quadrant for=20 CRM Customer Service Contact Centers is not intended to be = the sole=20 tool for creating a vendor shortlist. Use it as part of your = due=20 diligence and in conjunction with discussions with Gartner=20 analysts.

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Magic Quadrant

Figure 1. Magic Quadrant for CRM Customer Service Contact = Centers, 2008

=20

Source: Gartner (March=20 2008)

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Market = Overview

The market for customer service and support (CSS) = applications=20 for the contact center is split into four major areas: = information=20 access, process efficiency, customer intelligence and = intelligent=20 dialogue. Selection of an application as a part of a = shortlist must=20 take into consideration how it addresses the requirements of = the=20 service center. In increasing order of complexity, the = requirements=20 are:

Information Access: These call centers focus on = low-interaction complexity and low-process complexity. = They can=20 support order placement, complaint management, password = assistance=20 or consumer information, service activation, balance = look-up,=20 timetables or ticket purchasing. There is a need for basic = CRM=20 capabilities for account information, order information = and=20 contract details, but less emphasis is on real-time = analytics or=20 offer management. The process supported may not be = particularly=20 complex; however, the information must be reliable, = readily=20 available and delivered in an easy-to-use graphical user = interface=20 (GUI).=20
Process Efficiency: This is a customer service = center=20 with low-interaction complexity, but high-process = complexity. It=20 focuses on the efficiency and repeatability of the = process. There=20 may be little value in complex analytics or offer = management: The=20 goal of the customer experience is focused on efficiency = rather=20 than profitability. Onyx Software's (http://www.onyx.com/) Contact Center = product,=20 which is part of the Consona brands, is part of this area. = Although not on the Magic Quadrant, Onyx is a valuable = alternative=20 for businesses looking for solid customer service, = primarily in=20 small and midsize customer service centers that are built = on=20 Microsoft technologies.=20
Customer Intelligence: Interactions in this = contact=20 center are complex and often demand that the customer = service=20 representative not be forced into following a specific = process.=20 This is where high-interaction complexity meets = low-process=20 complexity. This fluid process control must be matched by = a high=20 level of analytics and data access.=20
Intelligent Dialogue: The conversations in this = contact=20 center require access to richer information about the = customer,=20 product or service. They also become more = process-intensive and=20 can be driven by business process management (BPM) = software =97=20 guided by workflow, analytics and predictive features that = can be=20 customized based on personalization rules. =

Companies such as Chordiant, Graham Technology, = Pegasystems,=20 Portrait Software and eGlue Business Technologies (which = does not=20 appear on our Magic Quadrant because of the newness of its=20 administration tools and its lack of a core CRM system) have = pushed=20 into the area of intelligent dialogue, delivering systems = that adapt=20 to customers' individual needs.

The Role of Software as a Service vs. On-Premises=20 Software

Microsoft and salesforce.com continue to evolve their = products=20 and challenge large enterprise application vendors. The=20 software-as-a-service (SaaS) model is the only option for=20 salesforce.com and has been recently launched for Microsoft = Dynamics=20 CRM but has yet to demonstrate viability for large, complex = contact=20 centers. Through 2009, customer service capabilities = delivered in=20 the SaaS model (or applications on demand) will be the=20 most-prominent in the business-to-business (B2B), low-volume = call/contact center. For more-complex environments, SaaS is = not yet=20 an accepted standard, nor will it be during the next two = years. In=20 our evaluations, we point out when we foresee a potential = challenge=20 for a product based on this qualification.

SaaS will evolve from an interesting alternative delivery = model=20 into a critical selection factor at all levels of the = customer=20 service contact center by 2011. By 2013, at least 75% of = customer=20 service centers will use a form of SaaS. Through 2011, fewer = than=20 10% of organizations will select SaaS for complex business = process=20 support. Through 2008, SaaS offerings for the contact center = will=20 not serve high-volume and high-complexity processes. Weigh = the=20 benefits of the SaaS model (faster time to deploy and time = to=20 benefit) against the rationale behind demonstrating a more = specific=20 total cost of ownership analysis.

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Market=20 Definition/Description

The customer service contact center is built in = layers:

CRM business applications for customer interaction = (customer=20 service, knowledge management, desktop search, real-time=20 analytics/decision support, CRM databases, desktop = integration,=20 online community management and surveys)=20
Contact infrastructure, such as interactive voice = response,=20 computer-telephony integration (CTI), automatic call = distribution,=20 chat, e-mail, instant messaging, alerts and Really Simple=20 Syndication=20
Workforce optimization tools (call recording and = quality=20 management solutions, workforce management, e-learning and = performance management solutions)=20
Enterprise feedback management=20
Offline analytical tools

The 2008 Magic Quadrant looks at the first layer: CRM = business=20 applications for customer interaction. At their most basic = level,=20 these applications handle a wide range of tasks, such as = order=20 management, case management, advisory services, problem = diagnostics=20 and resolution, account management and returns management. = They may=20 include knowledge-enabled service resolution (such as = advanced=20 search tools), community management, offer management and = service=20 analytics dashboards. They are designed to enable employees = or=20 agents of a company to support clients directly, usually = within a=20 call or contact center, whether the product is a consumer = good, a=20 durable good or a business service, such as financial = services,=20 customer services (for example, retail banking, wealth = management or=20 insurance), hospitality, telecommunications, government, = utilities=20 or travel. Contact center technical-support software is = built to=20 enable employees or agents of a company to support the = clients=20 directly, usually within a call or contact center, typically = focused=20 on clients' product use, implementation and problem=20 resolution.

The majority of the world's contact centers house fewer = than 200=20 service agents, and place relatively low value on packaged = CRM=20 applications. A large and complex center is one:

With more than 400 customer service agents=20
Containing business rules for complex entities, such = as=20 contact, enterprise, subsidiary, partner and the workflow=20 processes to route a case, opportunity or order based on = the rule=20 set for the specific relationship=20
Where a case may be routed from one department to = another,=20 depending on type=20
That supports multiple languages simultaneously=20
In which multiple back-end systems synchronize using = their own=20 rules; examples are credit card fraud, = telecommunication-specific=20 functions (such as telecommunication billing, service and = resource=20 management, product life cycle management, digital content = and=20 advertising bundling) and integrated order management=20
For which real-time decision support is important=20

Two new requirements are more prominent in = 2008:

The agent needs to be able to support the customer, = regardless=20 of whether the customer is on a Web site, at a kiosk or in = a=20 vehicle. This means that the agent sees what the customer = sees,=20 and has the tools to solve the customer's problem or = address his=20 or her issue from a remote location.=20
The customer service contact center needs to send out=20 proactive, automated alerts. For example, when the status = in a=20 back-end system changes to one of which the customer needs = to be=20 aware (such as bank balance, credit card fraud, flight = delays,=20 available upgrades, price range reached, a special offer = on cars=20 and insurance policy exceptions), an alert is sent to one = or=20 several devices until the customer responds that he or she = received the notification.

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Inclusion and = Exclusion=20 Criteria

Market traction and momentum:

Has 15 customer references for CSS functionality in = the=20 contact center.=20
Has at least five new customers for CSS in the past = four=20 quarters in at least two geographic regions (for example,=20 Asia/Pacific, Latin America, South America, North America = and=20 Europe).=20
Has generated at least $7 million in software revenue = for core=20 CSS from new clients during the past four quarters.=20
Will equal or exceed the previous four quarters of = business=20 results in the upcoming four quarters.=20
Appears regularly on client shortlists.=20
Has built a practice with sufficient third-party = consulting=20 and integration firms to grow at a double-digit pace for = five=20 years.

Short-term viability:

Has sufficient professional services to fulfill = current and=20 future customer demands during the next six months, and at = least=20 enough cash to fund a year of operations at the current = burn rate.=20
Has technology to support an extension to = cross-channel=20 customer service without the need to code in a new = development=20 environment.

Trendsetter or market mover:

Is moving markets based on its software and strategy.=20

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Added

No vendors were added.

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Dropped

Lagan was dropped because it focuses on local and = regional=20 government case management only.

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Evaluation = Criteria

Ability to = Execute

Product/Service (Weight: High)

The vendor needs to have a scalable SaaS (or on-demand) = delivery=20 model. Advances in software architectures =97 particularly = advances in=20 service-oriented architectures (SOAs) =97 and Web 2.0 = requirements=20 will further complicate the user's choice.

We continue to see 1) a great need for advanced decision = support=20 and complex knowledge-management capabilities, 2) customer = feedback=20 management, 3) an interest in creating composite = applications=20 through in-house development and 4) best-of-breed CSS=20 vendors.

The CSS application should have out-of-the-box = functionality,=20 which means a strong set of industry and process-specific = business=20 logic and data. Through process design or functionality = breadth, the=20 system must support end-to-end customer service processes = for the=20 chosen market. Published application programming interfaces = are=20 critical to connect (or expose) an application's customer = service=20 functionality with that of another system or process. = Vendors will=20 be measured on the capabilities of their product releases to = support=20 customer service, and the technical support of their = multichannel=20 and cross-channel environments. The functionality portion of = the=20 vendor rating is developed by weighting:

Case management/problem/service resolution: 15%=20
Decision support: 10%=20
Offer management/sales capability: 5%=20
Adaptive business rule engine: 10%=20
Knowledge management: 15%=20
Integrated e-mail/chat and collaboration tools: 10%=20
Enterprise feedback management: 5%=20
Multisource search and authoring: 10%=20
Predictive customer analytics: 10%=20
Support of collaborative online communities: 10%=20

The vendor must have a stable product development team = for each=20 product module that it sells, or a demonstrated successful=20 partnership.

Overall Viability (Weight: High). The capability = of the=20 vendor to ensure the continued vitality of a product, = including a=20 strong product development team to support current and = future=20 releases, as well as a clear road map regarding the = direction that=20 the product will take until 2010. The vendor must have the = cash on=20 hand and consistent revenue growth during four quarters to = fund=20 current and future employee burn rates, and to generate = profits. The=20 vendor is also measured on its capability to generate = business=20 results in the CSS market.

Sales Execution (Weight: Standard). The capability = of the=20 vendor to provide global sales and distribution coverage = that aligns=20 with marketing messages. It must also have specific = experience with=20 selling its CSS to the appropriate buying center. The = strength of the management team is key as well.

Market Responsiveness (Weight: Standard). The = vendor's=20 capability to perceive evolving customer requirements and = articulate=20 that insight back to the market, as well as create the = products for=20 readiness as demand comes online.

Marketing Execution (Weight: High). The capability = of the=20 vendor to consistently generate market demand and awareness = of its=20 CSS solution through marketing programs and press = visibility. In an=20 ideal world, marketing execution should be less critical = than some=20 other factors; however, the business reality is that = marketing=20 success can fuel future growth and improvements.

Customer Experience (Weight: Standard). The vendor = must=20 produce a sufficient number of quality clients and = references with=20 varying levels of sophistication to prove the viability of = its=20 product in the marketplace. References are used as part of = the=20 evaluation criteria for the ability to execute and create a = vision=20 for how organizations can improve customer service. Included = in this=20 are implementation and support. The vendor must be able to = provide=20 internal professional-service resources or partner with = system=20 integrators with vertical-industry expertise, CSS domain = knowledge,=20 global and localized country coverage, and a broad skill set = (such=20 as project management or system configuration) to support a = complete=20 project life cycle. The critical point on customer = experience is to=20 ascertain the degree of change management that accompanied = the=20 implementation. Often, the end user experiences discomfort = from the=20 change processes that were introduced with the new system, = not from=20 the new software. The vendor's customer support = organization=20 must also be able to provide satisfactory, prompt service to = its=20 customers in all regions of the world.

Operations (Weight: Low). The vendor needs to = offer=20 consistent and comprehensible pricing models and structures, = including contingencies such as failure to perform as = contracted, or=20 mergers and acquisitions. The vendor is measured on its = flexibility=20 to support multiple pricing scenarios, such as on-premises=20 licensing, as well as application on-demand offerings, such = as=20 hosted and multitenant. The vendor must have sufficient = professional=20 services =97 in house or through third-party business = consultants and=20 system integrators =97 to meet evolving customer=20 requirements.

Table 1.=20 Ability to Execute Evaluation Criteria
Evaluation Criteria	Weighting
Product/Service	high
Overall Viability = (Business=20 Unit, Financial, Strategy, Organization)	high
Sales=20 Execution/Pricing	standard
Market = Responsiveness and=20 Track Record	standard
Marketing = Execution	high
Customer = Experience	standard
Operations	low

Source: Gartner

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Completeness = of=20 Vision

Market Understanding (Weight: Standard). The = market for=20 customer service is highly diverse because of the = multichannel=20 nature of customer interaction and the wide range of = processes that=20 need to be supported. To succeed, a vendor must demonstrate = a=20 strategic understanding of current and future CSS = opportunities that=20 are unique to its target market. This may be new application = functionality, evolving service models or in-line analytical = capabilities for unique customer segments.

Market Strategy (Weight: Standard). The vendor can = describe its go-to-market strategy as something other than = growing=20 until it is acquired by a larger company. Even with this as = the=20 endgame, it must be clear how prospects will be protected or = even=20 benefit from such a strategy. We look for a well-articulated = strategy for revenue growth and sustained profitability. Key = elements of the strategy include a sales and distribution = plan,=20 internal investment priority and timing, and partner=20 alliances.

Sales Strategy (Weight: Standard). The strength of = the=20 sales force, especially in a challenging economic period, = means the=20 difference between floundering and steady/rapid growth. We = are=20 looking for highly trained sales leaders who are able to = quickly=20 differentiate the value proposition of products and services = over=20 the competition.

Product Strategy (Weight: High). Specific vision = criteria=20 include BPM (supporting a threaded service task across = functional=20 areas, regardless of channel) and providing for the creation = of=20 content about the most-likely customer intentions and how to = address=20 them, based on continuously variable business scenarios.=20 Continuously variable means that, depending on the business = context=20 of the interaction, the steps and decisions in a service = procedure=20 may vary. The vendor openly communicates to its customers = and to=20 Gartner a statement of direction for the next two product = releases=20 that keeps pace with or surpasses Gartner's vision and our = clients'=20 vision of the CSS market. The vendor has a sufficiently = broad set of=20 products to ensure the success of the product over time. = Without an=20 advanced SaaS product plan (realizable as a scalable model = by 2009),=20 a vendor cannot be considered visionary.

Business Model (Weight: High).To be a leader = through 2009,=20 the vendor will have a SaaS and an on-premises application = option.=20 Application modules are tightly integrated and have business = process=20 modeling capabilities and advanced workflow. The company has = a=20 strategy to appeal to its key vertical industries =97 that = is, it=20 integrates with systems unique to an industry, delivers = packaged=20 functionality and workflows for an industry (such as those = for the=20 telecommunications, automotive and consumer goods = industries), and=20 delivers B2B as well as business-to-consumer (B2C)=20 interactions.

Vertical/Industry Strategy (Weight: High). Unless = a=20 product is deployed as a strong add-on to an existing = technology=20 stack, a deep understanding of one or more vertical = industries will=20 be crucial to offer differentiation.

Innovation (Weight: Standard). Innovative vendors=20 incorporate concepts that extend to consumer technologies, = service=20 avatars and customer service functions embedded in virtual=20 communities (for example, Facebook, FixYa, Get Satisfaction = and=20 SupportSpace). The vendor understands major = technology/architecture=20 shifts in the market and communicates a plan to use them, = including=20 migration issues it may cause for customers on current = releases. The=20 architecture is built to operate in a SaaS delivery model as = well as=20 on premises. We examine how well the vendor articulates its = vision=20 to support service-oriented business applications.

Applications must fully support SOA, have a smart client, = and be=20 decomposable as widgets or as part of a larger "mashup."=20 Applications must help optimize a predictive customer = analytics=20 system =97 directly or through tightly integrated partners. = These=20 predictive analytics alert management, agents or customers = when=20 service patterns are detected that might signal the need to = adjust a=20 business strategy or direction, or indicate that the = likelihood of a=20 particular business scenario occurring has changed (for = example,=20 customers responding to a notice on defective parts, an = accident or=20 financial news). The vendor will be measured on the = capability of=20 its architecture to support global rollouts and localized=20 international installations. The vendor must have the tools = for IT=20 and business users to extend and administer the CSS = application. The=20 customer is the final arbiter of whether a company is=20 visionary.

Geographic Strategy (Weight: Standard). The vendor = understands the needs of the three largest markets =97 the = European=20 Union (EU), North America and the Asia/Pacific region =97 = and knows=20 how to build a strategy to focus on aspects of the overall=20 market.

Table 2.=20 Completeness of Vision Evaluation = Criteria
Evaluation Criteria	Weighting
Market=20 Understanding	standard
Marketing = Strategy	standard
Sales = Strategy	standard
Offering (Product) = Strategy	high
Business = Model	high
Vertical/Industry=20 Strategy	high
Innovation	standard
Geographic = Strategy	standard

Source: Gartner

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Leaders

Leaders demonstrate market-defining vision and the = ability to=20 execute against that vision through products, services, = demonstrable=20 sales figures, and solid new references for multiple = geographies and=20 vertical industries. The development team has a clear vision = of the=20 implications of social networking on customer service = requirements.=20 A characteristic of a leader is that it does not necessarily = drive a=20 customer toward vendor lock-in, but rather provides openness = to an=20 ecosystem. When asked, their clients reply that this product = has=20 affected the organization's competitive position in their = market and=20 helped lower costs. They can demonstrate $50 million in = sales to new=20 customers during the past year.

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Challengers

The vendors in the Challengers quadrant demonstrate a = high volume=20 of sales in their chosen markets, balanced across at least = three=20 vertical industries. They understand their clients' evolving = needs,=20 yet may not lead customers into new functional areas with = their=20 strong vision and technology leadership. They often have a = strong=20 market presence in other application areas, but they have = not=20 demonstrated a clear understanding of the CSS market = direction or=20 are not well-positioned to capitalize on emerging trends. = They may=20 not have strong worldwide presence or deployment partners. = They can=20 demonstrate $50 million in sales to customers during the = past=20 year.

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Visionaries

Visionaries are ahead of potential competitors in = delivering=20 innovative products and delivery models. They anticipate=20 emerging/changing customer service needs and move into the = new=20 market space. They have a strong potential to influence the=20 direction of the CSS market, but they are limited in = execution or=20 demonstrated track record. Typically, their products and = market=20 presence are not yet complete or established enough to = challenge the=20 leading vendors.

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Niche = Players

Niche players offer solid products for CSS functionality=20 components or vertical subsegments. They may offer complete=20 portfolios but demonstrate weaknesses in one or more = important=20 areas. They could also be regional experts with little = ability to=20 extend globally. They are focused on and can support the = large=20 enterprise, rather than small and midsize = businesses.

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Vendor = Strengths and=20 Cautions

Amdocs

Strengths

Amdocs' product groups and professional services for = selling=20 and deploying software, as well as its consulting = services, reach=20 worldwide.=20
The vendor has a strong commitment to its products, is = targeted at the installed Amdocs customer base in=20 telecommunication services, and offers good products for = billing,=20 fulfillment/order management and customer interaction.=20
Amdocs exhibits good use of complementary software = partners.=20
The vendor has strong financials and the ability to = attract=20 software partners.

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Cautions

Amdocs has limited exposure to new customers outside = the=20 telecommunications vertical industry, except in its legacy = high-tech installed base.=20
The vendor relies on partners for analytics, knowledge = management, e-service and mobile field service.=20
Amdocs has limited traction in growing third-party = external=20 service providers for consulting and implementation = services.=20

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Astute = Solutions

Strengths

Astute Solutions' ePowerCenter product has been = successfully=20 deployed across the U.S. and the U.K., primarily, but not=20 exclusively, in small and midsize customer service centers = (15 to=20 100 agents).=20
The vendor has strong knowledge of customer service = processes=20 in vertical industries, such as restaurants, hospitality, = consumer=20 goods and retail (nonbanking or other financial services). =
Its RealDialog Agent Assist product for knowledge = management=20 is easy to use and manage. It has easy to modify basic = screen=20 features, and the GUI is flexible and easy to navigate.=20
Astute Solutions pays good attention to client needs.=20

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Cautions

This small company (fewer than 100 employees, and = Gartner=20 estimates that year-end 2008 revenue will be less than $15 = million) will find itself in competition with = better-financed and=20 better-positioned rivals, such as RightNow Technologies = and=20 salesforce.com.=20
Lack of a software partner ecosystem or functional = breadth=20 will make it difficult to scale the company.=20
Astute Solutions has a limited presence outside the = U.S. and=20 the U.K.=20
Its product architecture doesn't have the ability to = serve as=20 a multichannel solution for large, distributed = international=20 service environments (multicurrency, formats and = language).=20

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Chordiant

Strengths

Chordiant has a tight focus on supporting customer = service=20 interactions, with complex processes in retail banking, = insurance=20 and telecommunications.=20
Adaptive applications learn as they go, evolving the = quality=20 of customer service. Its scalable product has embedded = business=20 process modeling and predictive analytics.=20
Chordiant is one of the only CRM companies that = supports all=20 interactions, such as branch, collection, teller, Internet = and=20 contact center.=20
The company has a good SOA, based on Java Platform, = Enterprise=20 Edition (Java EE), and supports IBM infrastructure = (WebSphere and=20 DB2) and BEA WebLogic.

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Cautions

Chordiant has a narrow focus on large service = organizations,=20 primarily in Europe. It has a less-demonstrated 2008 = presence in=20 customer service contact centers in North America, South = America=20 and the Asia/Pacific region.=20
The vendor experienced a good revenue stream in 2007 = and the=20 beginning of 2008. After a series of unprofitable years, = it has=20 moved to profitability. However, watch for continued = growth and=20 viability.=20
Chordiant lacks a multitenant SaaS delivery model.=20
Its solution requires a strong financial and resource=20 commitment from prospective buyers that is in line with = the=20 complexity of the use case demanded by customers. =

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Graham = Technology

Strengths

Graham Technology's new flagship product, ciboodle, = has an=20 intuitive, multichannel user interface customer service = for=20 banking, retail and telecommunications that values = business=20 process modeling.=20
The vendor has a responsive professional service team = with a=20 solid understanding of business processes.=20
The underlying platform, GT-X (rebranded as ciboodle = Process=20 Platform), has an SOA with an application that includes an = expanding set of customer service functionality.=20
The ciboodle product is a good tool to design, = orchestrate and=20 execute a company's customer service processes on top of=20 established back-end systems, making it attractive to = business=20 process outsourcers with call/contact center practices.=20
Graham Technology extends customer service into = broader=20 processes, such as billing, debt collection, upselling, = lead=20 generation and support of marketing campaigns. =

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Cautions

The vendor has a limited sales reach (recent = appearances in=20 the U.S.; otherwise, primarily in the U.K., Australia, = Ireland,=20 New Zealand and South Africa).=20
Graham Technology has limited third-party = consultancies,=20 system integrator resources and application partners.=20
Its solution is too complex for smaller organizations = with=20 standard service processes (that is, outside of banking,=20 telecommunications and utilities).=20
Graham Technology has few complementary CRM = application=20 partnerships to round out product offerings. =

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Infor

Strengths

Infor has a renewed emphasis on a platform and = application=20 road map, and professional services are available to help = clients=20 with the migration path.=20
The vendor has a good combination of functionality to = assist=20 with multiple channels (Web and contact center), as well = as a=20 holistic set of customer-facing/assisting activities, such = as=20 customer service, and inbound and outbound marketing.=20
Infor has access to a broad installed base.=20
The Infor client base has the opportunity to add CRM = and=20 customer service capabilities. The Epiphany Service Suite = v.6.5=20 (and later versions) have good B2C contact center = capabilities for=20 the hospitality vertical industry and other service = businesses.=20

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Cautions

Infor has good financial flexibility, yet it carries a = proportionately higher level of debt ($4.5 billion) = compared with=20 its largest competitors (for example, Microsoft, Oracle = and SAP).=20 In the current financial market, this may limit Infor's = strategic=20 flexibility compared with these major vendors.=20
Microsoft-centric companies, or those looking for a = SaaS or an=20 on-demand option, should look first to alternative = solutions.=20
Product innovation is not evident, even as the = platform and=20 technologies keep pace.=20
Multichannel communications (vs. functionality) = capabilities=20 are lacking.=20
Limited examples of new customers exist in the = Asia/Pacific=20 region, South America, the Middle East and Africa. = Prospects in=20 these regions must ask about local support resources.=20

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Jacada

Strengths

Jacada is an alternative to packaged customer service=20 applications for organizations with B2C contact centers = focused on=20 developing a standardized customer-service desktop, while = not=20 replacing back-end and front-end systems.=20
Jacada offers proven solutions for customer service in = the=20 telecommunications and insurance industries, and for = outsourced=20 call centers in the U.S. and the EU, where there is a = heavy=20 reliance on legacy data.=20
It offers scalability with careful optimization into = the 1,000=20 or more seat range.

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Cautions

Early-stage partnerships with system integrators and=20 consultancies limit Jacada's business process improvement=20 capabilities.=20
Lacking control of the database, and not serving as = the=20 process design platform, IT organizations can view Jacada = as a=20 tactical contact center deployment. This raises the = probability of=20 eventual replacement in key accounts.=20
Overall, Jacada lacks CRM functionality beyond basic = customer=20 service functionality.=20
The company is weak in knowledge management and Web=20 self-service.

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Microsoft

Strengths

Microsoft has tremendous financial viability, support = from=20 management and investments in product development.=20
It has a worldwide installed base, as well as = value-added=20 resellers and partners.=20
Customers can choose from a strong set of Microsoft = products=20 with which to integrate over time, such as Outlook, = BizTalk,=20 Exchange and SharePoint, to foster tight integration and = internal=20 collaboration around the customer, and later to support = customer=20 communities. Microsoft Dynamics CRM integration to Office=20 Communications Server will be a market differentiator.=20
Basic customer service functionality is augmented by=20 integration with SharePoint and other features for content = management, knowledge management, workflow and = collaboration.=20

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Cautions

Risk of market confusion exists with simultaneous = offerings=20 for CRM on-premises, hosted and Microsoft Dynamics CRM = Live=20 versions of the product.=20
No industry-specific capabilities are available = directly from=20 Microsoft; however, partners are assisting with offerings = in=20 healthcare, banking and other service industries.=20
Microsoft provides little evidence of predictive = analytics,=20 real-time offers or integrated marketing.=20
Its product requires more-seamless integration with = external=20 knowledge management systems and has only rudimentary = search or=20 case-authoring capabilities.=20
An early look at Microsoft Dynamics CRM Live suggests = that it=20 will not be a realistic option for the customer service = center=20 until the second half of 2009 as telephony infrastructure = partners=20 are lined up. The product will limit the number of custom = objects=20 and workflows to 100 each.

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Oracle = (E-Business=20 Suite)

Strengths

Linking tasks into longer processes is possible using = Oracle's=20 BPEL Process Manager.=20
Oracle has a broad offering for established Oracle = E-Business=20 Suite (EBS) customers (for example, extensions are = available for=20 enterprise search, e-mail, scripting, iSupport and = contracts).=20
Oracle has a firm understanding of business processes = in B2B=20 capital/high-tech equipment vertical industries.=20
Oracle product developers received high marks from = clients for=20 their responsiveness.

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Cautions

EBS has limited capabilities in predictive real-time = offer=20 management, business process modeling and in-line = marketing.=20
Oracle does not have a strong focus on B2C = environments (such=20 as telecommunications, insurance and banking) or other = high-volume=20 retail contact centers where CTI options are necessary.=20
Users report that iSupport (the Web-based application) = can be=20 awkward to use. The form-based graphical interface of the=20 TeleService application is nonintuitive and inflexible; = however,=20 it is an efficient tool.=20
EBS has limited support from large integrators or = business=20 consultancies, and few strategic partnerships with = third-party=20 software providers in the CRM space. Oracle professional = services=20 are competent, but adherence to project timelines must be=20 monitored.=20
No references were available to demonstrate a = multitenant SaaS=20 (see "How to Evaluate SaaS Architecture Model Choices").=20

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Oracle = (PeopleSoft)

Strengths

Oracle has a strong and flexible user interface, with=20 straightforward and fast capabilities to obtain a full = view of=20 customer information.=20
Oracle is recommended as a shortlist specifically for = the=20 PeopleSoft installed base, with plans for PeopleTools,=20 specifically for service-centric organizations in higher = education=20 and HR.=20
Oracle offers prepackaged integration with Oracle = customer=20 data hub and EBS R12.=20
The vendor has strong SOA and Web services, as well as = an=20 excellent interface in versions 8.9 and 9.0. =

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Cautions

Oracle's PeopleSoft products are recommended only in = the=20 following environments/situations: PeopleSoft ERP, human = capital=20 management and higher education.=20
Some clients report high software costs for the latest = contract negotiations versus the industry average in our = sample of=20 125 contact centers.=20
Support is limited from large integrators and business = consultants.=20
According to references, Oracle offers little = innovation in=20 new product developments for Web 2.0, such as online = communities=20 and unified communications and collaboration.=20
PeopleSoft CSS is not a multitenant SaaS product = offering (see=20 "How to Evaluate SaaS Architecture Model Choices"). =

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Oracle = (Siebel=20 Systems)

Strengths

Oracle has three Siebel products in this area: Siebel = Contact=20 Center, Contact Center Anywhere and Call Center On Demand. = We=20 evaluate the Siebel Contact Center in this Magic Quadrant: =
Siebel CRM is the lead Oracle application for CRM. It = has a=20 commanding role in the future design of Oracle = applications,=20 Fusion and Oracle Fusion Middleware (see Note 1). For more = information, see "Oracle Fusion Middleware: On the Road to = Service-Oriented Architecture (and Beyond)."=20
The Siebel line continued to have a steady stream of = releases=20 in 2007. In addition, Siebel 7.8, Siebel 8.0, Siebel = E-Billing 6.0=20 and Siebel CRM On Demand R.14 are in general release. = Gartner=20 expects Siebel 8.1 to be available in full general release = by=20 year-end 2008.=20
Oracle's Siebel products have built-in customer = service=20 analytics with a dashboard of real-time contact center = metrics.=20
Oracle offers a combination of deployment options, = such as=20 on-premises or hosted, with the option of bundled = telephony=20 infrastructure.

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Cautions

Clients in insurance, credit-card banking and = distributed=20 customer service centers have voiced concerns about the = complexity=20 of Siebel as a core application from an implementation and = integration perspective relative to competing products.=20
The slow pace of adoption of the growth of Call Center = On=20 Demand (SaaS version) points to apparent, continued = weakness in=20 the multitenant version of the customer service offering, = as seen=20 from the buyer's perspective.=20
References aren't widely available (that is, multiple=20 geographies and multiple industries with industry-specific = functionality) on the Version 8.0 product (released in = February=20 2007) for complex call center environments, such as = insurance=20 claims, and high-volume telecommunications technical = support.=20
Limited impact is evident in helping clients adopt = Oracle=20 Siebel product innovations (new software versions and new = product=20 adoption).=20
When customization is required, a strong commitment to = training dedicated resources must be made by the IT = organization=20 and the business.

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Pegasystems

Strengths

Pegasystems has good tools to design and automate = business=20 processes that incorporate decision logic and information = from=20 back-end systems, such as ERP, financials and credit, and = link=20 them to customer service processes.=20
It offers a highly scalable solution (1,000 or more = concurrent=20 users in an integrated environment with 99.95% uptime) and = provides good support.=20
Pegasystems greatly increased the packaged = functionality=20 available for customer service. Specialties are = healthcare,=20 insurance and financial services industries. New = functionality is=20 more broadly applicable to other industries requiring = business=20 process optimization.

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Cautions

Its system is optimized for complex interactions that = include=20 legacy information. It is less appropriate for simple = customer=20 service processes.=20
Pegasystems lacks a multitenant SaaS delivery model.=20
The vendor has minimal experience outside North = America and=20 the U.K., or with multicountry EU operations and = EU-specific=20 business rules. If Asian language support or bidirectional = language support is essential, then look for evidence of = recent=20 referenceable contact center projects and local = implementation=20 expertise.=20
It has limited but improving support (that is, more = strategic)=20 from large system integrators, such as Accenture, = Capgemini and=20 IBM.=20
Pegasystems demonstrates little relevance to B2B = service=20 processes in industries focused on capital equipment.=20

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Portrait = Software

Strengths

Portrait Software provides tools and applications to = solve a=20 range of business problems. It offers: 1) a business = platform=20 (Portrait Foundation), 2) horizontal applications (for = example,=20 Portrait Interaction Optimizer), 3) the engine for = Fiserv's=20 customer interaction management solution and 4) data = mining as a=20 predictive customer analytics platform.=20
The vendor has good industry knowledge in retail = banking and=20 other financial services.=20
Portrait Software has a responsive professional = service group.=20
It has good partnerships with Fiserv and Unisys, and = its core=20 product is built on Microsoft .NET.=20
Portrait Interaction Optimizer can be combined with = rules from=20 Portrait, or analytical scores from other analytics = vendors, and=20 delivers the best next actions to third-party CRM systems. =

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Cautions

Portrait Software has limited examples of full = customer=20 service contact center capabilities (for example, account = system=20 of records and interaction software).=20
It has limited recent experience outside of financial=20 services.=20
Despite profitability and good growth (Gartner = estimates=20 year-end 2007 growth of $30 million), the vendor supports = a broad=20 range of products focused on complex problems.=20
Portrait Software is highly dependent on partners and=20 resellers for future growth.=20

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RightNow=20 Technologies

Strengths

Based on user feedback, the cost to deploy and run its = customer service application is 40% to 200% lower than the = customer service offerings in an average large enterprise=20 application supplier implementation.=20
RightNow Technologies offers a full complementary set = of Web=20 self-service tools and capabilities that can be integrated = into=20 the contact center.=20
It offers consumer-oriented, customer-service contact = centers,=20 except where the need is for a combination of many agents, = high=20 transaction volume and complex legacy (for example, fraud, = banking=20 systems and reservation systems) integration.=20
RightNow Technologies has industry domain expertise in = higher=20 education, government agencies, retailers and consumer=20 electronics.=20
Its product is offered in a SaaS delivery model, but = allows=20 for an on-premises model if required (for example, = government,=20 healthcare and outsourcing).

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Cautions

RightNow Technologies has improved, but still limited, = third-party professional service resources for = organizations that=20 require significant change management as part of an = engagement.=20
The vendor is not a natural fit historically as the = contact=20 center desktop for large and complex centers (for example, = telecommunications, insurance and banking), or for complex = trouble=20 ticketing/depot repair where parts and logistics are = critical.=20

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salesforce.com

Strengths

Salesforce.com offers B2B, low-call-volume CSS centers = in its=20 installed base.=20
It has an excellent GUI, simple design tools, = intuitive=20 navigation and a good understanding of the importance of = Web=20 communities.=20
It has strong investments in future customer service = products.=20
Salesforce.com has a large number of small regional=20 professional service partners for setups and deployments.=20
Its SaaS delivery model lowers initial costs and = speeds time=20 to deployment.

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Cautions

Salesforce.com's lack of an on-premises software model = may=20 make it difficult for some prospects concerned with the=20 conformance to security models in some industries, such as = banking, healthcare and government.=20
The vendor is largely unproven in large, complex, = retail, B2C=20 contact centers (that is, large-scale, high-volume call = centers=20 where processes must be continually synchronized and = monitored,=20 such as retail banking, loan origination, insurance policy = administration, bill processing and fraud management; see=20 "Software as a Service for Contact Center CRM: Limited but = Promising").=20
Without owning the customer master, product master, = pricing,=20 inventory or other key asset information, it is = questionable what=20 the long-term disposition of salesforce.com's product will = be for=20 customer service.

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SAP

Strengths

The newly released SAP CRM 2007 interface is intuitive = and=20 easy to navigate.=20
SAP's commitment to its product line and its viability = are=20 evident through improvements in tools and tactical = acquisitions=20 (for example, Ingeneo and Wicom).=20
It has a strong understanding of the B2B customer = service=20 processes of its SAP Business Suite installed base in=20 manufacturing and logistics services, and it is improving = its=20 understanding in utilities.=20
SAP supports end-to-end processes, such as bill of = material,=20 parts master, account and service ticket.=20
It has adequate internal development support for key=20 customers.

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Cautions

Look to the availability of SAP CRM 2007 over earlier=20 versions. It has unproven offerings in decision support, = knowledge=20 management, enterprise feedback management and = collaboration=20 tools.=20
SAP is largely untested in high-call-volume, large, = B2C=20 contact center environments, where voice over IP and CTI = may be=20 required.=20
Its SaaS delivery model is not gaining traction.=20
SAP's development tools on pre-2007 versions to extend = and=20 customize the application fall behind industry leaders.=20
It has limited support from the major external service = providers in the customer service contact center area (for = example, Accenture, Capgemini and IBM Global Services).=20

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The Magic Quadrant is copyrighted 19 = March 2008=20 by Gartner, Inc. and is reused with permission. The Magic = Quadrant=20 is a graphical representation of a marketplace at and for a = specific=20 time period. It depicts Gartner=92s analysis of how certain = vendors=20 measure against criteria for that marketplace, as defined by = Gartner. Gartner does not endorse any vendor, product or = service=20 depicted in the Magic Quadrant, and does not advise = technology users=20 to select only those vendors placed in the =93Leaders=94 = quadrant. The=20 Magic Quadrant is intended solely as a research tool, and is = not=20 meant to be a specific guide to action. Gartner disclaims = all=20 warranties, express or implied, with respect to this = research,=20 including any warranties of merchantability or fitness for a = particular purpose.

=A9 2008 Gartner, Inc. and/or its = Affiliates.=20 All Rights Reserved. Reproduction and distribution of this=20 publication in any form without prior written permission is=20 forbidden. The information contained herein has been = obtained from=20 sources believed to be reliable. Gartner disclaims all = warranties as=20 to the accuracy, completeness or adequacy of such = information.=20 Although Gartner's research may discuss legal issues related = to the=20 information technology business, Gartner does not provide = legal=20 advice or services and its research should not be construed = or used=20 as such. Gartner shall have no liability for errors, = omissions or=20 inadequacies in the information contained herein or for=20 interpretations thereof. The opinions expressed herein are = subject=20 to change without notice.