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
-
- Account Manager - IT Services
- Germany
- €90000 plus OTE and Car
-
Are you a deal closer with a hunter mindset? Do you know how to uncover business pain points, and turn them into long-term digital transformation partnerships? Our Client are growing their sales force across Germany and looking for an ambitious, straight-talking Account Manager to take the lead on new client acquisition. You’ll focus on mid-sized to large enterprises across Germany helping to shape their digital future with tailored IT solutions in Workplace, Cloud, and Security. • Drive Growth: Own the full sales cycle for new business across your region. • Solution Sell: Build bespoke offers in Security, Digital Workplace and Cloud solutions • Build Relationships: Establish a solid pipeline through smart prospecting, marketing-driven leads, and your own network. • Represent a brand known for trust, delivery, and tech excellence—with 4,000 employees globally and a growing team within Germany. What You Bring • Proven new logo sales experience in the IT services space (not hardware!) • Deep knowledge in one or more of: Cybersecurity, Digital Workplace, or Cloud • Confidence to lead enterprise deals and pitch directly to senior stakeholders • Fluent German and good English skills Sind Sie ein Abschlussprofi mit Hunter-Mentalität? Wissen Sie, wie man geschäftliche Pain Points identifiziert und in langfristige Partnerschaften zur digitalen Transformation verwandelt? Unser Kunde baut derzeit sein Vertriebsteam in ganz Deutschland aus und sucht eine ambitionierte, ehrliche Persönlichkeit als Account Manager, die den Lead bei der Neukundengewinnung übernimmt. Ihr Fokus liegt auf mittelständischen bis großen Unternehmen in Deutschland, denen Sie mit maßgeschneiderten IT-Lösungen in den Bereichen Workplace, Cloud und Security den Weg in die digitale Zukunft ebnen. Ihre Aufgaben • Wachstum vorantreiben: Verantwortung für den gesamten Vertriebszyklus im Neugeschäft Ihrer Region. • Lösungsorientierter Vertrieb: Entwicklung individueller Angebote in den Bereichen Security, Digital Workplace und Cloud-Lösungen. • Beziehungen aufbauen: Aufbau einer stabilen Pipeline durch gezielte Ansprache, marketinggenerierte Leads und Ihr eigenes Netzwerk. • Marke repräsentieren: Werden Sie Teil eines Unternehmens mit 4.000 Mitarbeitenden weltweit und einem stark wachsenden Team in Deutschland – bekannt für Vertrauen, Verlässlichkeit und technologische Exzellenz. Was Sie mitbringen • Nachgewiesene Erfahrung in der Neukundenakquise im Bereich IT-Services (kein Hardwarevertrieb!) • Fundiertes Wissen in mindestens einem der Bereiche: Cybersecurity, Digital Workplace oder Cloud • Selbstbewusstes Auftreten im Umgang mit Enterprise-Deals und Entscheidungsträgern auf Top-Level • Verhandlungssichere Deutschkenntnisse und gute Englischkenntnisse
-
- Senior SOC Analyst Level 3. Microsoft Security stack | Ability to achieve SC Clearance
- London
- To attract the right person
-
Job Title: Senior SOC Analyst Level 3. Microsoft Security stack | Ability to achieve SC Clearance Location: Hybrid remote | London / Berkshire Overview: Senior SOC Analyst Level 3 to join a specialist Managed Security Services business. You will be responsible for advanced threat hunting / triage, incident response etc with a strong focus on the Microsoft Security Stack. Key Responsibilities: Lead and resolve complex security incidents / escalations Conduct advanced threat hunting using the Microsoft Security Stack. Build, optimise and maintain workbooks, rules, analytics etc. Correlate data across Microsoft 365 Defender, Azure Defender and Sentinel. Perform root cause analysis and post-incident reporting. Aid in mentoring and upskilling Level 1 and 2 SOC analysts. Required Skills & Experience: The ability to achieve UK Security Clearance (SC) – existing clearance ideal. (Sorry no visa applications) Current experience working with a SOC environment Microsoft Sentinel: Development and tuning of custom analytic rules. Workbook creation and dashboarding. Automation using Playbooks and SOAR integration. Kusto Query Language (KQL): Writing complex, efficient queries for advanced threat hunting and detection. Correlating data across key tables (e.g., SignInLogs, SecurityEvent, OfficeActivity, DeviceEvents). Developing custom detection rules, optimising performance, and reducing false positives. Supporting Sentinel Workbooks, Alerts, and Playbooks through advanced KQL use. Deep understanding of incident response, threat intelligence and adversary techniques (MITRE ATT&CK framework). Strong knowledge of cloud and hybrid security, particularly within Azure. Additional Requirements: Must hold or be eligible to achieve a minimum of Security Clearance (SC) level. Nice to have certifications (e.g., SC-200, AZ-500, GIAC) are desirable. Strong problem-solving and analytical skills. Excellent communication for clear documentation and team collaboration. Please follow Wheaton’s Law.
-
- New Business Sales Hunter | Cyber Security (UK Based)
- London
- To attract the right person
-
New Business Sales Hunter needed | Cybersecurity (UK Based) Are you looking for uncapped commission, a fun and sociable team that drives success with no politics? If so...You must Be UK based - and able to achieve UK SC clearance. (sorry no visas) Have a demonstrable history of sales success in Cyber Security Follow Weatons law. The role: Seeking a proven New Business Sales Hunter to join an established, successful and expanding cyber security firm. New business focused - £1m GP year one target (ramped). Sell a blend of security services & professional services. Ideal experience selling some or all of the following Cyber strategy & risk management Managed detection & response (MDR) Penetration testing Compliance & audit support You: Strong cybersecurity/IT services sales track record. Confident selling into mid-market & enterprise. UK based - London commutable 1x per week. Hunter mindset, full sales cycle ownership. Don't just send an email to apply give me a call on 07884666351
-
- CyberArk Architect
- London
- Upto £110,000 plus bonus and benefits
-
Are you ready to lead from the front and drive innovation in the Identity & Access Management (IAM) space? We’re looking for a seasoned CyberArk Architect who has CDE-CPC ideally or experience with privilege Cloud, someone who can lead with vision, execute with precision, and inspire teams to deliver excellence. As a key leader in our organisation, you’ll bring your strong business acumen and a technology-focused, innovative mindset to the table. You’ll be driving strategic initiatives, shaping transformation programs, and empowering teams to think big and deliver even bigger. Acting as a subject matter expert in CyberArk Leading strategic transformations in: Identity Governance Privileged Access Management (PAM) Access Management Customer Identity and Access Management (CIAM) Building and maintaining strong, collaborative relationships within the team Communicating clearly and confidently — both written and verbal — to deliver updates, raise potential issues, and share insights If you are interested in the above position we are looking for people with: deep expertise and a successful track record in IAM strategy, delivery, or assurance with CyberArk Hold relevant certifications such as CDE in Privileged Cloud or Guardian Have experience in a client-facing role (preferred, but not essential) Thrive in a hybrid working environment and are available to work from our or client London office three days a week Lead with clarity, communicate with impact, and adapt quickly to changing priorities