uploads///

How Does Cisco Systems View Its Collaboration Segment?

By

Aug. 10 2017, Updated 9:37 a.m. ET

Market opportunity of $21.1 billion by 2020

According to Cisco Systems (CSCO), the total available market (or TAM) in the Cisco  Collaboration business is expected to rise from $11.3 billion in 2016 to $21.1 billion in 2020. Cisco is well positioned to drive the market transition to cloud in the collaboration space, which is estimated to grow at a CAGR (compound annual growth rate) of 17.0% between 2016 and 2020. In comparison, Premise Solutions is expected to fall at a CAGR of 1.0% from $10.0 billion in 2016 to $9.5 billion in 2020.

Cisco claims to lead the conferencing segment with a share of 48.0% at the end of 2016, while in the voice and customer care space, it has a share of 41.0%.

Article continues below advertisement

Acquisition of MindMeld

In May 2017, Cisco announced the acquisition of MindMeld, an artificial intelligence (or AI) platform that creates conversational interfaces. MindMeld provides a dialog manager that enables computers to respond through voice and chat applications to user requirements.

Cisco acquired MindMeld for $125.0 million, and the deal is expected to close by the end of 2017. MindMeld’s application programming interface is used by more than 1,200 companies, including Intel (INTC), Google (GOOG) (GOOGL), and Samsung (SSNLF).

During Cisco’s fiscal 3Q17 earnings call, its CEO (chief executive officer) stated, “As chat and voice quickly become the interfaces of choice, MindMeld’s AI technology will enable Cisco to deliver unique experiences throughout its portfolio, starting with collaboration. This acquisition will power new conversational interfaces for Cisco’s collaboration products, revolutionizing how users will interact with our technology, increasing ease of use, and enabling new cognitive capabilities.”

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market RealistLogo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.