28 March 2018
| Natalie Bannerman
Cisco holds a narrow lead over Microsoft throughout Q4 of the enterprise collaboration market, according to new figures from Synergy Research Group.
Cisco held a stable market share over the course of 2017,
while Microsoft’s share gradually grew as the year
progressed. Cisco held its lead over Microsoft by approximately
a percentage point over the first three quarters, but tis fell
to noticeably less than a percentage point in Q4.
"Cisco and Microsoft clearly set
themselves apart as large-scale vendors whose portfolios span
multiple major segments of the market and whose activities span
the globe. Cisco is a clear market leader in North America and
APAC regions, while Microsoft has a lead in EMEA and Latin
America," said Jeremy Duke, Synergy Research
Group’s founder and chief analyst.
IBM and Avaya hold the third and fourth positions, which are
quite a distance behind the two leaders. According to the
findings Cisco’s leadership has been thanks
largely to its dominant position in premise-based solutions
while also growing its revenues in hosted/cloud market
segments. Microsoft also holds a strong lead in hosted/cloud
market collaboration but hasn’t achieved the same
kind of market dominance because in comparison to the
on-premise market, the hosted/cloud market is more fragmented
with no single supplier achieving a double-digit market
In addition to Cisco, Microsoft, IBM and Avaya, other major
players in the enterprise collaboration market include: Mitel,
Google, Polycom, LogMeIn, Genesys, AT&T, Verizon,
RingCentral, UNIFY and ALE.
"Collaboration continues to be a somewhat fragmented market
that is characterized by a long list of disruptive and
high-growth companies and we are now having to track 160
different vendors and service providers in order to really
understand the market," added Duke.
The total Q4 revenues for collaboration reached an all-time
high hitting approximately $10 billion. The collaboration
market includes: enterprise voice, UC applications,
telepresence, email software, enterprise content management,
enterprise social networks and a range of hosted/cloud
communications and applications.
Revenues from hosted/cloud solutions was up 26% in Q4
compared to the same quarter in 2016. Revenue from
premise-based systems declined 4% for the same period. In
addition, teamwork applications – like
Cisco’s Spark and Slack, cloud/hosted email, cloud
file sharing and contact centre as-a-service, also saw strong
growth throughout the quarter. Vendors Zoom, Fuze, RingCentral,
Five9, Vonage, BlueJeans, Polycom and 8x8, saw its Q4 revenues
grow by 20% or more, year-on-year.
Synergy Research Group,