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Amazon Steals The Show At Enterprise Connect Expo

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Amazon Steals The Show At Enterprise Connect Expo
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William Blair's Bhavan Suri attended the Enterprise Connect Expo and the main takeaway of the event was Amazon.com, Inc. (NASDAQ: AMZN)'s release of its virtual contact center, Amazon Connect.

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.

As such, companies including Five9 Inc (NASDAQ: FIVN), BroadSoft Inc (NASDAQ: 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 (NYSE: TWLO)'s platform, which is positive as it should expand Twilio's relationship with Amazon beyond its Simple Notification Service.

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