The hosted/cloud collaboration market has overtaken premise-based solutions.
New Q1 data from Synergy Research Group shows that Microsoft once again narrowed the gap with collaboration market leader Cisco, thanks to it widening its lead in hosted/cloud solutions and presenting a strong challenge in premise-based solutions. Meanwhile, for the first time total quarterly revenues from hosted/cloud solutions surpassed premise revenues. Cisco remains ahead in the total market accounting for over 14% share of worldwide revenues in the quarter, having grown by 6% year on year. Avaya maintains its third position in the overall ranking, while Google places third for hosted/cloud collaboration. Other companies featuring in the collaboration leader board include IBM, Polycom, Verizon, Citrix, AT&T and Mitel. Revenues from collaboration - which includes enterprise voice, UC applications, telepresence, email software, enterprise content management, enterprise social networks and a range of hosted/cloud communications and applications - were once again well over $8 billion in the quarter.
Total revenues for the quarter were up 4% year on year. Revenues from hosted/cloud solutions continue to grow strongly – up 10% year on year – while revenue from premise-based systems fell 2%. During the quarter particularly strong growth was seen in hosted contact center, hosted voice & UCaaS, hosted video and enterprise presence/IM. Hosted/cloud solutions now account for 51% of the total collaboration market.