London Called, Lima Calling - NICE Analyst Summit Next

This crazy - but really fun - Fall 2023 World Tour continues, and there are several more stops ahead yet.

Am just back from London and the UC Expo - blog post/pix about that is coming next. Home barely long enough to pack and prep for alpaca country - Peru! This could be the most complicated trip I’ve ever done, but it’s all an adventure, and I know it’s going to be memorable.

This is for the NICE Analyst Summit, and if you thought Marrakesh, Morocco last year was exotic - and it was - it’s not a stretch to say Machu Picchu is even more exotic. I think we’re really splitting hairs here, but more importantly, NICE has set the bar impossibly high for analyst events, and am more than happy to be in the mix.

Most people don’t believe me when I tell them about this run of travel I’m on, so if not just to bear witness, I’d damn well better share pix. I always do that, but this time around, there will be video coming too, and I’ll explain more about that next week.

For now, I need to figure out what to wear, and double check all the travel logistics. I fly from Toronto early Monday to Newark, connect there to Lima, stay the night, then fly out Tuesday morning to Cuzco, and from there I will get taken to the hotel, and then the adventure really begins!

I have a lot to learn about Inca culture, but I do know that Cuzco is central to the origin myth for sun god worship - Inti - and it’s probably best to stay on his good side. NICE sent this guy along, and he’s coming with me as my good luck talisman.

Five9 Analyst Summit - My Quick Take

Virtual events with analysts are tricky to plan, especially for pacing out the program. Over the last year, vendors have tried all kinds of formats, but it seems clear that the best approach is to do it in manageable chunks of time. Nobody is going to sit through a day-long marathon of video streaming - it’s just too intense, and too easy for folks to wander off.

Over the past threee days, I’ve been tracking the Five9 Analyst Summit, and they seem to have the right formula - three days and three hours each day - and starting at 10:30 ET, which works pretty well going across multiple global time zones. It’s still a lot of content to digest, and I managed to take in just about all of it - only had to drop out a couple of times.

I’m not going to write up a full research note now, but will share a few takeaways and screenshots here while it’s still fresh. Following a solid Q1 earnings report, the updates we got this week provided detail as to why the company is doing so well.

Much like Zoom has been the right technology at the right time to enable work from home, Five9 provides a pretty complete CCaaS solution as contact centers rush to the cloud. As we heard, 85% of this market is still premises-based, and it’s hard to see why so many players are jumping in with all types of cloud offerings. Being a fully cloud-native contact center pure play, Five 9 is in a great spot right now.

The CCaaS market sure is messy right now - as is the broader customer service/CX space - and for that tangent, I’ll steer you to my latest No Jitter post which came out earlier this week. Coming back to Five9, here are some notable takeaways around the many things they’re doing right.

  • Lots of strong growth metrics, but their upmarket success with large enterprise customers catches my eye the most, with 45% YoY revenue growth. and 83% of Q1 business revenue. All cloud vendors will book their share of smaller customers, but I think it’s the ability to sell into this end of the market that will create the most sustainable value and growth for Five9.

  • We heard lots about their culture, and it’s a strong selling point for them as an organization. They’ve built out a solid managment team along with proven industry leaders on the sales side, and as CEO Rowan Trollope noted, it’s a place now “where nobody leaves” - in a good way, of course!

  • Plenty of updates around innovation - I’m not that technical, but their Inference acquisition is a good example with IVA - intelligent virtual agent - to help automate customer service - as is Whendu, which helps contact centers with complex legacy integrations migrate to the cloud. Aside from acquistions, they’ve added over 150 developers, and are maintaining R&D spend at a solid 12% of revenues. This is just a taste of what they’re doing, and the main idea here is that they’re holding their own, and then some, in a very competitive space that is evolving quickly.

  • So much more to talk about, and before I close off with some screenshots that can be shared, the intangibles of leadership have a lot to do with their success. You might be surprised to know that Five9 started in 2001, so this isn’t exactly a startup with wheels or a unicorn with hardly any revenues. They’ve been at this a long time, and both President Dan Burkland and CEO Rowan Trollope shared a clear vision for where they’re going and why they’ve been so successful, especially in this big moment of CCaaS adoption. Rowan kicked this event off talking about re-imagining CX and taking a clean slate approach with cloud and AI, and to build around the emerging “multi-modal” workforce, where both human agents and chatbots play key roles in transforming customer service into a highly personalized experience. Easier said than done, but they’re definitely on the right track - leading and not following.

Snail Mail - Flawed, but it Works - Just Like TDM

Pretty busy writing and researching lately, but I just had to get this posted today.

Call me old school, but I still use the postal service - just like I still read newspapers, use a paper-based calendar, and listen to vinyl. I'm even still into silent movies, table hockey and board games, but let's save all that for another blog, or just come by for a visit.

Bear with me, foks, there is a telecom thread coming. I got a check in the mail yesterday from a client in California, and was kinda surprised to see the state of the envelope - see below - this is pretty much exactly how it looked.


As you can see, the envelope wasn't sealed, the flap was torn, and the letter was half-opened. It's a total mess, yet the letter got to me, and the check inside was perfectly fine. There was no damage, and anyone can see this was a check, yet nobody saw fit to take it and pretend to be me at their local Money Mart (and the check wasn't just a few hundred dollars, so it could have been a nice payday).
I've actually had stranger things happen with my mail, but generally, the service works fine for me. Sure, sending mail from the U.S. to Canada costs more and takes much longer, but it does get here. Email has its virtues, but regular mail still has value too. This letter travelled over 2,000 miles, and to arrive in my box in this shape tells me that the mail service works pretty well. Sure, I'm probably lucky too, but the bank took my check, and the end result was achieved.
The parallels to telecom struck me right away. Snail mail is like TDM - both are great for what they were designed for, but they're costly and complex services to provide, and are being replaced by cheaper, more efficient alternatives. I'll bet you'll have to think hard if I ask you whether it's been longer since you last mailed a letter, or made a legacy landline phone call.
With all that said, both services still function very well, but most people simply don't value them any more. We used to take the reliability of these services for granted, and when email crashes or VoIP sounds like you're under water, we just shrug and carry on. These shortcomings are part of the experience, but they never would have been tolerated with legacy services. Sure, there were lots of problems with mail service, but the rain or shine delivery promise of the U.S. mail is about as ingrained in the culture as apple pie. That reliability isn't what it used to be, but the mail comes 6 days a week (for now - but only 5 in Canada), and for those still using TDM, the service pretty much still has 100% uptime.
I've long maintained that the postal service is really in the privacy business. The mission is to deliver letters and parcels from point A to point B as efficiently as possible. Mail is private and personal - the seal on an envelope is a pretty flimsy form of security, and it only works because it's implicitly understood that you NEVER open someone else's mail. Postal workers don't do it (well, they're not supposed to!), and we don't even do it when we see other people's mail. For the most part, personal privacy is respected.
Yet, the letter in the photo above got to me just fine. I can't say whether anybody actually looked at the contents, but it arrived in the same condition it would have if the envelope was sealed. The idealist in me would say that the privacy principle was upheld here, and even with an unsealed, half-open letter, nothing was compromised when it easily could have - or maybe I'm just lucky!
Let's get back to telecom. In the TDM world, there's a dedicated circuit between the callers. For the most part, it's totally secure and private, the reliability is virtually 100%, and the quality is pristine. IP-based calls may be far more efficient in terms of using network resources, but all of these TDM virtues are somewhat compromised - that's why phone calls today are practically free. 
Now, think about my letter being a VoIP packet in a data network. I can't articulate the specific comparisons, but a packet with this much damage would never get to its intended destination. Or, if it did, it would be exposed to all kinds of security and privacy vulnerabilities along the way that any wannabe hacker could have a field day with. I'm just saying that the potential for bad things to happen here is very high, and it's part of the bargain when you move on from legacy to nextgen technologies.
So, while TDM and the postal share similar baggage, they still have their virtues. Their successors no doubt have their advantages, and there's really no turning back, but the price of progress can be higher than expected. There's no way that the equivalent of my letter in a data network would have gotten to me, and while this isn't an everyday occurrence, it's a reminder about why what we had worked so well for so long.
It's the same reason I still listen to vinyl. If you didn't grow up with it, you can't possibly understand what you're missing. As with VoIP and email, digital music definitely has its virtues, but even with a bit of homework, it won't take long to understand the subtle and not-so-subtle ways that vinyl is hands-down superior. Time to get back to work - if I have to explain this, then you really don't know, but I'd need a entirely separate blog to debate these things. Hmm....

He's Heeeere...Obama Comes to Ottawa

Just a quick public service announcement to let you know Canada rocks - at least until mid-afternoon.

Canada is the first foreign visit for President Obama, and he touched down as scheduled at 10:30 this morning - just a few minutes ago. If you don't RSS my blog, he may be gone by the time you read this, but that's ok!

He's just here for a few hours, and everyone I've talked to in Ottawa is ga-ga about the visit. There probably hasn't been this level of excitement over a visit like this since JFK came in 1961. Nixon coming up to meet Trudeau was big news too, but Nixon was no rock star like Obama. Should be quite a morning here, and great day to celebrate Canada-U.S. relations.

If you're keeping score, there are lots of touchy issues that I'm sure will get short shrift, such as what to do with Khadr post-Gitmo, how long should Canada stay in Afghanistan, how to justify buying tarsand oil. Lots of important things they could be talking about, but for now, I'm sure the focus will be on getting our economies in order.

And if you want to follow up to the minute coverage, there's CBC's live blog, and if you want to add your two cents to Obamania, check out WelcomeObama.ca.