In the modern enterprise scenario, information is shared via various modes including enterprise video conferencing, mobile phones, and instant messenger. It helps in delivering the message via corporate intranet and groupware by formulating collaborative working environment within the stipulated time duration. With enterprise collaborative software, the workload is reduced by a striking amount and it also provides the ease of communication amongst the employees. Subsequently, Bring Your Own Device (BYOD) strategy has transformed into a trend that is propelling in the enterprise collaboration market. It improves the availability of the workers and corporate data as well, and also helps team messaging platforms to grow. Owing to this, the majority of the global workforce has started to adopt BYOD. A boon in the BYOD ecosystem is due to the team messenger that ensures and secures data transmission through end-to-end encryption.
As of 2018, the global enterprise collaboration market valued $29.8 billion and is projected to grow at a CAGR of 10.9% during the forecast period 2019-2025.
The demand for cloud computing is expected to grow 60% by the end of 2020. An increase in the adoption of cloud has led towards the digitalization of the modes of communication among employees and the digital transformation of the workplace. Small and medium-sized enterprises (SMEs) are investing in information technology in order to secure, compete, and capture digital opportunities offered in the enterprise collaboration marketplace. However, the point of convergence of these companies on using enterprise collaboration solutions is to serve various industries such as e-commerce. The formal SMEs contribute up to 40% of national income and 60% of the total employment in emerging economies of the world. Therefore, the SMEs play a vital role in the adoption of enterprise collaboration particularly in developing economies.
North America is Leading the Enterprise Collaboration Market
North America dominated the global enterprise collaboration market with a regional share of 33% in 2018. The region is the preliminary adopter of cloud technologies such as video and audio conferencing software, as they have the advanced infrastructure capability that leads to the highest revenue generator for the market. Companies in America are moving towards the public cloud and entering into a new era of hybrid IT, which is a combination of private cloud, public cloud, and traditional IT. These companies have executed hybrid cloud strategy as it helps in improving the way the businesses run their collaborations. Due to this, the government organizations such as US Department of Defense and US Joint Forces Command along with the state and local agencies have started to use the enterprise collaborative technologies to build internal and external knowledge repositories. Furthermore, the countries such as the US and Canada are witnessing huge adoption of cloud-based enterprise collaboration solutions and services in the SMEs and large enterprises across all the verticals. This has fuelled up the growth of the North America enterprise collaboration market.
Large Enterprise: A Key Enterprise Collaboration Market Segment
The large enterprise is the fastest growing segment of the enterprise collaboration market with a notable CAGR of 12.4% during the forecast period. Large enterprises have adopted Application Programming Interface (API) for their employees as it works more efficiently and effectively from any remote location. Enterprise collaboration tools have enhanced productivity and provide the employer’s an ability to hire more talent from any location. This technology is just emerging which is boosting the enterprise collaboration market growth.
Growth Drivers and Market Trends
· Virtual and Augmented Reality
Virtual and augmented reality are the emerging trends in the enterprise boardrooms. They are the real enterprise applications and the businesses are investing ample amount in the new technologies. Virtual reality companies such as RealSense, DORA, and AltspaceVR offer 3D image experiences for the boardrooms. In addition to this, augmented reality is different from virtual reality as it allows greater collaboration and communication along with customization between the businesses and their customers.
· Visual Collaboration Tools
New visual collaboration tools are increasing the productivity of the businesses. The visual collaboration tools have simplified the complex processes. These collaboration solutions enhance the process by allowing the team members and the stakeholders to communicate through a single visual collaboration tool. For instance, Google Drive is the most common visual collaboration team-oriented tool that are integrated into enterprise services. The adoption of similar tools by the organizations, have increased the visual collaboration tools market share.
· Artificial Intelligence Bots
Artificial intelligence bots are driving the enterprise collaboration market growth in recent times. AI bots in the collaboration tools interact with the customers and immediately provide responses with the information that they need. On such example is the major investments made by Microsoft and Facebook in the artificial intelligence bots also called chatbots in 2016. The organizations use chatbots to personalize their team experiences that adds more intelligence to the electronic conversations.
· Cisco Partners with BroadSoft
In February 2019, Cisco Systems, Inc., an American multinational technology company, merged with BroadSoft, Inc. This acquisition made Cison one of the biggest and most captivating Unified Communication solutions in the marketplace. However, BroadSoft’s integration into Cisco Collaboration is to deliver enterprise collaboration and cloud calling for their customers, offer sales and marketing support to BroatSoft’s service providers using the Cisco portfolio. Additionally, the partnership is expecting to see a huge expansion in the market, particularly in mid-market and enterprise customers. This merger will make sure that the technology helps the customer rather than hindering the work.
· Microsoft Merges with SAP to launch Project Embrace
Microsoft Corporation, an American multinational technology company merged with SAP SE, a German multinational software corporation, with a common goal to launch Project Embrace in 2019. Microsoft is the first global cloud provider to start SAP’s new Embrace Program. This project is SAP’s collaboration with Global Strategic Service Providers and public cloud providers to accelerate and simplify the customer’s journey to the cloud. Through a combination of reference architectures, market-approved journeys, the power of Microsoft Azure Cloud, and select service partners the customers will be able to stimulate their digital transformation. Therefore, project embrace will help the customers to manage ongoing and refactoring support costs, improve the performance of SAP applications by leveraging Microsoft, get access to the latest innovations, and SAP’s unified blueprint running S/4HANA on Microsoft Azure. The development of two major companies will provide the customers with the guidance that delivers a roadmap and facilitates a move from their current on-premise production landscapes to the latest digital transformation. By giving way to the enterprise collaboration market for growth and development, the major market players are introducing innovations in the market.
· Facebook Acquired Redkix for Workplace Communication
In October 2018, Facebook, Inc., a world’s leading online social media and social networking company, acquired Redkix, a startup that provides tools to communicate and to enhance communications by combining email with a more formal collaboration tool. The acquisition will improve communication on Workplace, communication tool by Facebook. After this deal, Facebook will look for ways to increase its revenue in the areas beyond the core Facebook platform. Such mergers and acquisitions will introduce innovative tools which will offer further opportunities for growth of the company and if they find a way to install email into it, it will attract more customers.
· Slack Forms Alliance with Atlassian
Atlassian Corporation Plc, an American enterprise software company, sold the IP assets of its two enterprise communications tools, HipChat and Stride to Slack, an American cloud-based set company in 2018. Atlassian has various popular developer tools such as Confluence, Jira, and Bitbucket. Out of all the tools, HipChat and Stride were the most redundant tools for the company so they sold the IP to Slack. Slack is trying to revolutionize the way people collaborate and communicate inside the organization. Furthermore, Slack has managed to advance the idea of Enterprise 2.0 tools. Thus, such innovations will influence the growth of the enterprise collaboration market.
Talk to one of our sales representative about the full report by providing your details in the link below:
Cloud Collaboration Market
Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.
To request for a proposal, provide your details in the below link:
Mr. Venkat Reddy
Email: [email protected]
Contact Sales: +1-614-588-8538 (Ext-101)