Microsoft Takes Over Enterprise Collaboration Leadership from Cisco

RENO, NV, June 3, 2014

New Q1 data from Synergy Research Group shows that Microsoft has finally caught up with Cisco and generated more revenue from its enterprise collaboration infrastructure activities in the quarter. Revenues from collaboration - which includes enterprise voice, UC applications, telepresence, email software, collaborative workspace software and enterprise social networks - were $5.4 billion in the quarter, with Microsoft’s overall share passing the 21% mark.

Total revenues for the quarter were down 1% year on year, as declines in enterprise voice and telepresence countered growth in other segments. On a rolling annual basis revenues reached $22.6 billion, up 1% from the preceding four quarters. Sequentially quarterly revenues were down 8%, reflecting a typical cyclical drop from a high in Q4. The largest three segments are enterprise voice, email software and UC applications, which in aggregate account for 78% of the Q1 market. The highest-growth segment is enterprise social networks, which experienced year-on-year growth of 34%.

“In Q1 Cisco revenue was impacted by softness in the enterprise voice and telepresence segments, issues which affected many vendors” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “On the other hand, Microsoft has only a small presence in enterprise voice and is not active in telepresence, but is growing its share of the UC applications segment, holding its own in email software and growing strongly in the nascent enterprise social networks segment. Microsoft has been steadily increasing its influence in collaboration markets over the last five years.”