Collaboration software spending to hit $45bn as team chat app demand booms
More and more companies are rolling out software like Microsoft Teams and Slack, making the collaboration software market a booming business, according to Synergy Research Group
Spending on team chat applications is set to grow substantially this year as demand for collaboration and unified communications (UC) software continues to boom, according to a forecast from Synergy Research Group.
Quarterly revenues are now at an all-time high, according to the analyst firm, and are set to continue “growing steadily” for the next five years. Third-quarter revenue in 2018 almost topped $11 billion (€9.6 billion), with final quarter numbers expected to be “substantially higher.”
Overall, the market for collaboration software is set to grow 9% this year to more than $45 billion (€39.3 billion) globally, buoyed by several high-growth market areas.
Team chat apps
The biggest growth is forecast for spending on team collaboration apps such as Slack and Microsoft Teams; it’s expected to rise 60% compared to last year, with spending expected to reach $500 million (€437 million) during 2019. Other fast-growing market segments include Video as a service (VaaS) and Communication Platform as a Service (CPaaS). Both are set to see 30% growth.
Explaining the growing popularity of team chat apps, Jeremy Duke, founder and chief analyst at Synergy Research Group, said the tools gained early traction with tech-focused organisations and innovative start-ups that wanted alternatives to traditional UC offerings.
That adoption is now becoming more widespread across a variety of enterprises – and Microsoft last week made a play for greater influence in the education market.
“Our research shows market adoption has progressed … since the early days and what we are now seeing is adoption to larger organisations in Medium to Large Enterprises,” Duke said.
The result is a “hockey stick growth curve” for the market, he said. Not surprisingly, that caught the attention of established UC vendors who entered the market in the last few years following the success of Slack.
Slack, which is reportedly preparing for a direct stock exchange listing, has seen the most “noteworthy” growth, according to the firm, with revenues doubling in the past year. According to the company’s most recent adoption figures, Slack now has 8 million paid users. In 2017, Slack claimed approximately $200 (€175) in annual recurring revenues.
Among the other fast-growing vendors are Twilio, BroadCloud (Cisco), Zoom, Fuze, Dropbox, RingCentral and LogMeIn (Jive).
It is the large tech vendors that account for the bulk of the overall collaboration software market. Cisco, which sells a range of UC, collaboration and contact centre products, will retain its lead in overall revenue generation, having further outdistanced second-placed Microsoft in the last quarter.
A Synergy Research report from last year showed that Cisco now accounts for the largest share of the on-premise software market, although Microsoft has seen success with cloud and hosted collaboration apps.
Cloud collaboration gains converts
Synergy’s latest data also highlighted an ongoing shift away from on-premise collaboration software deployments; they’re predicted to decline 3% even as spending on cloud and hosted products increases 19%.
Revenues for cloud and hosted software now account for 64% of the total, with on-premises products making up the rest. That marks a clear shift from a year ago, when the two were roughly on par.
According to Duke, Synergy’s research indicates the on-premise market will continue to contract.
“We believe on-premise is primarily an installed base play,” he said. “We do not see large new sales of traditional UC being sold, most are being sold into a large installed base.”
He notes, however, that the UC installed base is “enormous,” so while revenues are not growing, there is a “sizable amount of revenue still being spent that will continue for years to come.”
source techcentral
Industry: Unified Communications News
Latest Jobs
-
- Sailpoint IIQ Consultant
- London
- Up to £75,000
-
SailPoint IIQ consultant- London We are looking for a strong SailPoint IIQ consultant to work for this global enterprise, in this position you will be the lead consultant in regard to the IAM and PAM tools Duties include Responsible for designing, developing, testing, implementing, and integrating IAM (SailPoint) systems and solutions. Assessing requirements for Identity and Access Management solutions to meet stakeholders needs. Provide support for production IAM infrastructure systems and processes. Ensures the maintenance, patching, operating, and monitoring of IAM systems. Ensures senior management and staff are informed of any changes and updates in a timely manner. Experience with Maintaining and supporting SailPoint IIQ Assessing requirements for Privilege Access Management solutions to meet stakeholders needs We are looking for someone with the following experience SailPoint IIQ experience Expertise working with SailPoint Identity IQ platform - Access Lifecycle Management, Certifications, Role Management Expertise in onboarding applications with various connectors like Active Directory, JDBC, SCIM 2.0, Azure Active Directory Expertise in developing APIs (SCIM, REST) leveraging Java based developmentExperience of Privileged Access Management concepts and use cases Unfortunatly we are unable to provide sponsorship for this opportunity, therefore applications will need to be able to work in the UK
-
- SailPoint Consultant- Netherland-
- Netherlands
- upto €700 per day
-
We are looking for a highly skilled SailPoint IIQ Consultant to work on a major deployment project. The ideal candidate will have experience with all aspects of SailPoint IIQ, including development, configuration, and administration. They will also be able to work independently and as part of a team to deliver high-quality results. · Responsibilities · Develop and configure Sailpoint IIQ solutions · Integrate SailPoint IIQ with other systems · Support SailPoint IIQ deployments · Provide technical support to users If you are a highly skilled SailPoint IIQ consultant who is looking for their next project, we encourage you to apply. look forward to hearing from you!
-
- Lead CyberArk deployment Consultant
- London
- Upto £80,000 plus benefits
-
CyberArk Consultant is needed to be responsible for leading the deployment of CyberArk solutions for this expanding IT services business, You will work with customer both pre and post sales, getting involved in CyberArk Solution Design, helping to create CyberArk Strategic Roadmaps, on-boarding accounts, product and process integration into the CyberArk Solution and Proviso of Installation and technical Documentation. We are looking for this individual to have experience in: Installation of CyberArk PAS for V11.X and V12.X (Vault, DR Vault, Central Policy Manager and Password Vault Web Access) Upgrade of CyberArk from V9 and V10 (Vault, DR Vault, Central Policy Manager and Password Vault Web Access) Installation and Upgrade of Privilege Session Manager and Privilege Session Manager Proxy As some of your client will be government site, all individual will need to be put through SC clearance, therefore you must be eligible to receive this and happy to be put through(With a British Citizen or to have lived in the UK for the past 5 years) We are unable to provide work visa sponsorship for this opportunity
-
- Senior Business Analyst - Outside IR35 Contract, SC Clearance Required, London
- London
- £400 per day outside IR35
-
Senior Business Analyst - Outside IR35 Contract, SC Clearance Required, Based in London Project- to engage with colleagues and stakeholders to investigate and model business functions, processes, information flows and data structures, using a range of business analysis techniques. • You will translate the solution to the business problem into detailed requirements by creating user stories and well-defined acceptance criteria. • Elicit end-to-end business requirements for a live cross-government service • Working across the Government departments to bring together varied business and operational outcomes to form a holistic overall set of service requirements Current SC clearance is required. As is the ability to travel to London.