The on-premise portion of the market continues to decline steadily and now accounts for only 20% of the total, down from 30% two years ago.
Spending on hosted and cloud services continues to grow, driven by a small group of high-growth services. These services include UCaaS, CCaaS and CPaaS which collectively grew by 17% from last year and now account for well over US$7 billion in quarterly spending.
“The impacts of the pandemic opened a tremendous new market opportunity within collaboration, especially in video conferencing services and devices, rapidly driving change that would otherwise have taken a decade to achieve,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst.
“The collaboration market continues to evolve rapidly, as new technologies and services emerge that increase both management capabilities and productivity of in-office, remote and hybrid workers.”
Based on Q2 worldwide revenues, Microsoft is the overall leader in total collaboration and continues to hold steady market share thanks to a broad portfolio of collaboration products and services.
The research adds that Cisco is the overall number two ranked vendor but is seeing its market share under pressure from Microsoft and companies propelled by the pandemic.
Zoom is its biggest challenger and the number three ranked vendor driven by extraordinary growth over the past four years.
