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Enterprise collaboration software market to reach 'tipping point,' predicts Strategy Analytics

June 10, 2013 | Telepresence Options

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Story and Images by Fred Donovan / Fierce Enterprise Communications

The enterprise collaboration software and services market will reach a "tipping point" in two years as cloud-based collaboration software-as-a-service (SaaS) revenue surpasses on-premise software revenue, predicts research firm Strategy Analytics.

The market--which includes email and calendaring, instant messaging and presence, Web conference and social collaboration software and services--generated $7.4 billion in revenue last year, up 12 percent year-over-year, according to Strategy Analytics.

Firms vying for market share include Cisco (Nasdaq: CSCO), Citrix (Nasdaq: CTXS), Google (Nasdaq: GOOG), IBM (NYSE: IBM), Intralinks and Microsoft (Nasdaq: MSFT), the research firm noted.

"It makes a lot of sense for collaboration, which frequently involves people from different organizations on mobile and non-mobile devices, to be served up by trusted third party service providers with expertise in networking and connectivity," commented Andrew Brown, executive director of enterprise research at Strategy Analytics.

Forrester shares Strategy Analytics' enthusiasm for SaaS and collaboration. According to a�survey�of 631 IT decision makers in eight countries conducted last year on behalf of Cisco, Forrester found that "companies will increasingly leverage the cloud to access collaboration services--including voice-, Web-, and videoconferencing."

At the same time, Forrester does not expect that cloud computing will replace traditional collaboration service models; "rather, old, new and hybrid models will coexist for a time."

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