Suri commented in a research report on Friday that Amazon Connect is a self-service contact center solution designed to get call centers up and running quickly. The analyst added that since the product is a cloud-based offering, its users can scale their usage as needed which will be much appreciated among companies who have seasonality in their business.
"We believe its usage-based business model is compelling from a total cost of ownership perspective, especially when compared with on-premises systems," the analyst stated.
'Large Market Opportunity'
Suri believes Amazon's entrance into the space "validates the large market opportunity," but it is a low-end market play since it can be used by organizations of any size. But since Amazon's technology can also support large-scale contact center deployments with complex call routing requirements the analyst suggested that the company's objective is to ultimately replace legacy, on-premises contact center systems. Amazon Gets New Buy Rating, $1,100 Price Target At Loop Capital What It Means For Twilio That Lyft Went Shopping For A Second Vendor ______ Image Credit: By Unknown - Transferred from de.wikipedia to Commons using CommonsHelper., Public Domain, via Wikimedia Commons
As such, companies including Five9 Inc FIVN, BroadSoft Inc BSFT and inContact are most at risk from Amazon's new offering. On the other hand, the analyst suspects that Amazon is leveraging Twilio Inc TWLO's platform, which is positive as it should expand Twilio's relationship with Amazon beyond its Simple Notification Service.
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