Cisco stays on top of the collaboration market

Bill Boyle
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Cisco has achieved market-share growth and leadership for the third consecutive quarter with Microsoft second and Avaya and IBM vying for third place

A new report from Synergy Research shows that Cisco has achieved market-share growth for the third consecutive quarter, passing the 15% mark in the final three months of 2016.

Microsoft has also seen an improvement in its market share but remained more than two and a half percentage points behind Cisco.

Synergy noted that Avaya continued to struggle with IBM for third place in the market, however, IBM came out on top in the fourth quarter despite Avaya having taken the lead for most of 2016. Cisco’s market share growth in Q4 was mostly due, claims Synergy, with them partially hitting their long-term strategy targets in premise-based solutions and managing to keep its positions in the more lucrative hosted cloud market areas.

Microsoft, according to Synergy, still holds a strong lead in hosted/cloud collaboration, but this side of the market has no single supplier achieving market share in more than single digits, unlike the on-premise market. The other major players in the market include AT&T, Verizon, Citrix, Polycom, Mitel, UNIFY and ALE.

Jeremy Duke, Synergy Research Group’s founder and Chief Analyst said: “Collaboration continues to be a somewhat fragmented market that is characterised by a long list of disruptive and high-growth companies, with no less than 15 companies achieving full-year growth rates in excess of 20%. That level of growth is certainly not matched by the market leaders, with the top 10 companies in aggregate seeing their revenues actually decline somewhat in 2016. Looking ahead we see that new cloud-based applications will continue to disrupt traditional business communication systems, creating a strong opportunity for new cloud-based solutions.”

Total revenues from the collaboration software market – which includes enterprise voice, unified communications applications, telepresence, email software, enterprise content management, enterprise social networks and a range of hosted and cloud communications and applications –topped the $9bn total mark and were close to their all-time high.

Revenues from hosted and cloud solutions continue to grow strongly – up 9% in 2016 compared with 2015.