Genesys steps into analytics with Utopy acquisition

OVUM VIEW

Summary

Genesys has announced that it will acquire the speech analytics and workforce optimization (WFO) specialist Utopy. It plans to integrate Utopy’s analytics capabilities with its own call routing and WFO suite. Along with some significant product announcements in 4Q12, this step makes clear that Genesys is forging its own identity post-Alcatel, and solidifying its position as a top-tier contact center infrastructure provider.

Contact center buyers increasingly want their infrastructure vendors to act as a one-stop shop. They want WFO applications to be bundled into suites, with consistent interfaces and user experiences. Genesys’s WFO has historically been adequate, if unexceptional. However, the company appears to have recognized that sophisticated value-added applications, in this case speech analytics, represent a powerful sales lever and differentiator.

Ovum believes that Utopy is a good match for Genesys, and that it is a smart acquisition. The two companies have complementary technologies, geographic reach, and sales strategies. Along with CallMiner and Nexidia, Utopy was one of three leading independent speech analytics vendors, and by acquiring it Genesys has raised the pressure on the other routing infrastructure firms. Avaya, Cisco, and Interactive Intelligence must now solidify their analytics offerings, relationships with the remaining vendors, and roadmaps.

Utopy analytics closes a gap for Genesys

With the addition of Utopy, Genesys can for the first time offer its customers a full-featured, next-generation WFO suite. Utopy’s product set includes advanced speech and text analytics tools that can be deployed via either on-premise systems or in the cloud. While Genesys already had a mature workforce management application and an improving call recording/quality monitoring tool, the market increasingly demands sophisticated analytics. Several of Genesys’s key competitors offer WFO through partners rather than natively integrated applications.

Today’s buyers are looking for their technology suppliers to bundle all of the key applications into a coherent suite with single sign-on and a consistent user interface. Genesys has fallen behind some of its competitors in this area, so bringing the Utopy tools into its suite indicates its renewed commitment to enhancing the feature set of its WFO. The company has indicated that it intends to work quickly on product integration and producing a unified roadmap for the combined WFO offering. Since analytics is the fastest-growing segment of the contact center application market, this is a sign that Genesys has its eye on both growing its existing customer base and fending off potential competitors.

Utopy and Genesys have complementary sales strategies

Adding Utopy’s applications to the standard Genesys offering gives the company a good deal more potential to upsell to existing customers that require new analytics capabilities. The addressable customer base for analytics – both speech and text – is currently underpenetrated.

Genesys’ sales force has already been working with Utopy on a limited basis, so there is an existing familiarity with the offering and its pricing and deployment options. The Genesys executives responsible for shepherding the Utopy purchase say that the analytics application will be integrated into the Genesys suite “within months.”

This should be seen by the Genesys sales team as a strongly positive development, because for the first time the company can be seen as a one-stop shop for all agent-facing applications.

Genesys has moved quickly to emerge from ALU’s shadow

Taken along with the debuts of Genesys Connect (a cloud-based infrastructure system) and Genesys One (a rapid-deployment mid-market offering) at the end of 2012, it is clear from this announcement that Genesys is establishing itself post-Alcatel as a full-service contact center provider.

In early 2012 Ovum noted that the “new” Genesys had the potential to be more nimble and adaptive in the face of changing business conditions, but that the challenge would be to leverage the company’s expertise in growth areas beyond basic inbound contact routing. Over the last 12 months the company has sought to stake out an identity, solidify its reputation as an innovator with its existing customers, and reach out towards new parts of the market that it had not previously penetrated.

Ovum believes that the addition of the Utopy speech analytics offering to the Genesys product family is a smart move that bodes well for the company’s continued growth prospects.

APPENDIX

Author

Keith Dawson, Principal Analyst, Customer Experience and Interaction

keith.dawson@ovum.com

Further reading

“Genesys targets the small and mid-sized enterprise market for contact center solutions” (December 2012)

“A first look at the ‘new’ Genesys” (March 2012)

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