Collaboration Market Share: Cisco Leads, But Microsoft Right On Its Heels

Collaboration Market-Share: The Big Picture

According to second-quarter 2016 revenue figures from Synergy Research Group, Cisco remains the market-share leader at 14 percent but Microsoft is right on its heels with 13 percent. Cisco's lead, however, has declined from the end of 2015, in which it owned 16 percent of the total market while Microsoft held the same 13 percent share.

The overall collaboration market grew to over $9.2 billion for the quarter, a 4 percent increase year over year. The hosted and cloud segments grew 11 percent, while the premise-based space declined 4 percent compared with a year ago.

"The hosted/cloud segments keep on growing, while the premise-based segments continue to decline," said John Dinsdale, chief analyst and managing director at Synergy.

CRN compares second-quarter revenue and market share of the two leaders, as well as third-place player Avaya.

Cisco Revenue

Overall Q2 Collaboration Revenue: $1.3 billion

Overall Q2 Market Share: 14 percent

Cisco has held on to its market-share leadership position over Microsoft, which it has had since the first quarter of 2014, according to Synergy. Cisco's $1.3 billion in revenue, however, represents a decrease of 1.3 percent year over year.

Microsoft Revenue

Overall Q2 Collaboration Revenue: $1.22 billion

Overall Q2 Market Share: 13 percent

Microsoft revenue increased to $1.22 billion for the second quarter, representing a rise of 1 percent year over year. The software giant's market share has remained roughly the same as it was a year ago.

Premise-Based Market Leader: Cisco

Cisco Premise-Based Share: 26 percent

Microsoft Premise-Based Share: 18.5 percent

Cisco is the market-share leader when it comes to premise-based collaboration solutions, owning nearly 26 percent of the market. Microsoft captured more than 18 percent of the market for the second quarter, followed by Avaya in third place at 8.5 percent.

Hosted/Cloud Market Leader: Microsoft

Microsoft Hosted/Cloud Share: 8.5 percent

Cisco Hosted/Cloud Share: 5 percent

Microsoft is more than 3 points ahead of Cisco in the hosted and cloud segment of the collaboration market. Cisco nabbed 5 percent for the second quarter, followed by Verizon in third place at 4.5 percent.

Verizon captured $232 million in overall collaboration revenue for the quarter.

Bronze Medal: Avaya

Overall Q2 UC Revenue: $358 million

Overall UC Market Share: 4 percent

Although far behind Cisco and Microsoft, Avaya captured the third-most revenue in the UC space for the second quarter. Although its $358 million in revenues represents a decrease of 18 percent year over year, the company has 8.5 percent of the premise-based UC market share.