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Who Leads the Collaboration Market—Cisco or Microsoft?

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Cisco leads the collaboration space

On March 28, 2018, Synergy Research released its report on the 2017 collaboration market. In 4Q17, Cisco Systems (CSCO) held a narrow lead in the enterprise collaboration market over Microsoft (MSFT).

Cisco’s global market share was comparatively constant throughout 2017 while Microsoft’s share rose as the year went on. As the chart below shows, Cisco’s dominant position in premise-based solutions, as well as growing revenues in the rapidly growing hosted and cloud market segments, ensured its overall leadership in the collaboration market space.
collaboration market

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Collaboration is a fragmented market

In October 2017, Cisco acquired BroadSoft to install its communication and cloud-based offerings to its existing hardware services. To keep pace with digitization and evolution in its collaboration offerings, Cisco turned to AI (artificial intelligence) and ML (machine learning) services to provide risk management, cost-cutting, and new training models to its customers.

According to Jeremy Duke, founder and chief analyst at Synergy Research Group, “Collaboration continues to be a somewhat fragmented market that is characterized by a long list of disruptive and high-growth companies and we are now having to track 160 different vendors and service providers in order to really understand the market.”

This trend is evident in Cisco’s and Microsoft’s leadership in this space. None of the major players have close to 15.0% market share each in this space, as the chart above shows.

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