Five9 Strategic Move: Integrating Virtual Observer (Formerly CSI) to Reshape Cloud Contact Center Landscape

Five9’s acquisition of Virtual Observer marks a significant shift in how cloud contact centers are evolving. The company, known for its intelligent cloud contact center platform, is doubling down on integrated workforce solutions—and for good reason.

Why This Matters for Contact Centers

As organizations increasingly migrate to the cloud, they’re discovering a critical gap: the infrastructure supporting contact centers and workforce optimization tools often operate in silos. Five9’s integration of Virtual Observer addresses this head-on. The combined offering delivers what modern contact centers actually need—tighter integration between operations management and core contact center infrastructure, eliminating the friction of data fragmentation and complex administration.

Virtual Observer, which has collaborated with Five9 as a strategic partner for over three years and serves more than 150 joint customers, brings decades of workforce optimization expertise to the Five9 ecosystem. The platform provides a comprehensive cloud-native solution specifically architected for contemporary contact centers.

What Virtual Observer Brings to the Table

The Virtual Observer platform consolidates critical capabilities for modern contact centers:

Omnichannel recording with integrated screen capture enables supervisors and quality teams to gain complete visibility into customer interactions. Advanced security protocols addressing PCI and HIPAA compliance requirements protect sensitive data throughout the workflow. Speech analytics and survey tools provide actionable insights into agent performance and customer sentiment.

The workforce management module intelligently schedules and forecasts staffing needs, while pre-built connectors with major CRM platforms eliminate data synchronization headaches. Quality management frameworks ensure consistent service standards across the organization.

Strategic Rationale: Integration Over Best-of-Breed

Five9’s approach maintains flexibility for enterprise deployments. Post-acquisition, the company will continue fostering partnerships with leading WFO providers like those powering Five9’s Verint integration. This dual-track strategy—offering tightly integrated solutions for mid-market customers while preserving best-of-breed flexibility for large enterprises—positions Five9 as an orchestrator rather than a lock-in player.

As Rowan Trollope, Five9’s CEO, notes, the acquisition strengthens Five9’s ability to empower contact center teams. By reducing operational complexity and consolidating tools, agents and supervisors can refocus on what matters: delivering exceptional customer experiences while maintaining compliance and controlling costs.

Execution and Timeline

Dan McGrail, Virtual Observer’s current CTO, will transition to Five9, bringing the technical and product expertise that shaped Virtual Observer’s reputation. The transaction is expected to close before the end of Q2 2020, allowing Five9 to integrate the platform and begin delivering enhanced capabilities to its customer base.

This move reflects a broader industry trend: unified platforms powered by cloud infrastructure are increasingly displacing fragmented toolsets. Virtual Observer’s acquisition by Five9 signals that contact center leaders expect seamless, integrated experiences—not complicated integrations.