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.”
Industry: Unified Communications News
- DevSecOpp- Security design / review consultant. SC Clearance. London
CH7838 London £70,000 DevSecOpp- Security design / review consultant. DevSecOpp- Security design / review consultant will ensure that newly created, public facing apps are secure by design and by default by aligning them to current / best practice security policies and standards into the design phases. The individual must have a technical software / application development background with specalist experinece in secure architecture design. (Frameworks, processes, best practice etc) Practical experience translating and ensuring that the OWASP top 10, ISO27001, HMG frameworks requirements are reviewed and embedded into project designs which are implemented is essential. Experience working projects through a full development lifecycle is key. You will work along side the design and project teams to idenitfy and mitigate risks throughout the design phases. This is a permanent role. SC clearance is essential as is the ability to get to the London office. (When appropiate #covid) Security DevSecOps consultant. To arrange a discreet call book via https://calendly.com/chris-holt/devsecopp--security-design-review-consultant
- SPLUNK SOC Analyst level 3, London.
SPLUNK SOC Analyst level 3, Must be able to commute to the City of London. Onsite role. Security clearance needed. The SPLUNK SOC Analyst level 3 must have current experience working within a SOC environment with specific experience using a range of tools and techniques to investigate security incidents. Current experience with Splunk is essential. any additional experience Individuals with Elastic Security SIEM are highly desirable. Any of the following certifications are desirable Splunk Phantom certified admin, Splunk Core Certified Power User / Advanced, Splunk Certified Enterprise Security Admin, etc The role will include, but not be limited to working with sophisticated information security tools, investigating security incidents, incident management, technical escalation, process improvement, research into the latest threats, reporting etc The individual MUST currently be living in the UK and be able to achieve UK security clearance. (SC) This is a permanent role To arrange a call with Chris Holt https://calendly.com/chris-holt/arranged-call-with-chris-holt-elastic-siem-engineer-soc Chris.Holt@dclsearch.com
- ISO 27001 & Business Continuity Security Specialist, End User
- United Kingdom
CH7828 ISO 27001 & Business Continuity Security Specialist, End User, £70,000 United Kingdom ISO 27001 & Business Continuity Security Specialist needed to join a Cyber team within an end user. The ISO 27001 & Business Continuity Security Specialist will have end to end responsibility for the information security and Business Continuity management system. ISMS/BCMS. Both from an information security and technical security perspective working alongside the CISO. Experience must include, but not be limited to; a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling to achieve compliance. ISO 22301, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. Experience taking a company through accreditation is highly desirable Experience managing internal stakeholders, technical teams and external third parties essential Flexible working, very occasional travel to London office This is an exclusive role to DCL Search & Selection. Looking to interview immediately. https://calendly.com/chris-holt/iso-27001-business-continuity-security-specialis
- PCI- DSS Security Consultant, End User
PCI- DSS Security Consultant needed to join a Cyber team within an end user. The PCI- DSS Security Consultant will have end to end responsibility for PCI - DSS and its continuing certification. Both from an information security and technical security perspective working alongside the CISO. Experience must include, but not be limited to; a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling to achieve compliance. PCI objectives / 12 key requirements, OWASP top 10, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. PCI Cloud compliance, specifically someone with experience taking PCI-DSS from on premise into the cloud is HIGHLY desired. However, someone with Solid PCI experience with a strong technical background which include Cyber / Secure by design etc would be considered. Experience managing internal stakeholders and external third parties essential. Flexible working, but with the ability to get into London. This is an exclusive role to DCL Search & Selection. 1st stage interviews to happen the week of the 14th September Arrange a call with Chris on https://calendly.com/chris-holt/arrange-a-call-chris-dcl-pci-compliance