In 2016, the top 10 Collaboration software vendors accounted for nearly 66% of the global Collaboration applications market which grew 2.6% to approach nearly $8.2 billion in license, maintenance and subscription revenues.
Last year Microsoft led the pack with a 17% market share with $1.4 billion in Collaboration product revenues. In 2016, Cisco Systems was No. 2, followed by Citrix, Oracle and Dropbox in that order. In 2015, the top five were Microsoft, Cisco, Citrix, Oracle and IBM.
Through our forecast period, the Collaboration applications market is expected to reach $9.5 billion by 2021, compared with $8.2 billion in 2016 at a compound annual growth rate of 2.9%.
| Exhibit 2: Worldwide Collaboration Software Market 2016-2021 Forecast, $M | |||
|---|---|---|---|
| Year | 2016 | 2021 | 2016-2021 CAGR, % |
| Total | 8264 | 9550 | 2.9% |
Source: Apps Run The World, December 2017
Collaboration Market Definitions And Forecast Assumptions
Collaboration applications include Cloud tools for Web conferencing, team collaboration, social business platform, event management, eSignature, and sharing of online community resources. Collaboration applications also include conventional tools for email, group calendaring and scheduling and threaded discussion.
Box, Dropbox, Slack and other startups are turning the concept of collaboration upside down with a whole new approach to knowledge sharing, team collaborating and information filtering through smart messaging with contextual and decision support capabilities.
Top 10 Collaboration Software Vendors
Here are the rankings of the top 10 Collaboration software vendors in 2016 and their market shares.
| Rank | Vendor | 2015 Collaboration Apps Revenues, $M | 2016 Collaboration Apps Revenues, $M | 2016 Coll. Apps YoY Growth, % | 2016 Coll. Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Microsoft | Subscribe | Subscribe | Subscribe | Subscribe | Integration between LinkedIn and Microsoft apps is under way to foster great collaboration among its users. |
| 2 | Cisco Systems | Subscribe | Subscribe | Subscribe | Subscribe | Applications are bright spot among otherwise sluggish recovery in core business. |
| 3 | Citrix | Subscribe | Subscribe | Subscribe | Subscribe | Much of collaboration revenues has been spun off to LogMeIn. |
| 4 | Oracle | Subscribe | Subscribe | Subscribe | Subscribe | Leveraging Oracle PaaS platform to boost collaboration capabilities among Cloud customers. |
| 5 | Dropbox | Subscribe | Subscribe | Subscribe | Subscribe | Expanding into a new 736,000 square-foot corporate headquarters in San Francisco in 2019. |
| 6 | IBM | Subscribe | Subscribe | Subscribe | Subscribe | Watson begins to power its collaboration platform with AI capabilities. |
| 7 | Box Inc. | Subscribe | Subscribe | Subscribe | Subscribe | Unveiled Box Skills: A framework for applying machine learning tools such as computer vision, video indexing and sentiment analysis to content stored in Box. |
| 8 | Subscribe | Subscribe | Subscribe | Subscribe | Extends collaboration tools to address other functional areas like HR. | |
| 9 | LogMeIn, Inc. | Subscribe | Subscribe | Subscribe | Subscribe | Beginning to integrate collaboration products it acquired from Citrix. |
| 10 | Intralinks Holdings, Inc. | Subscribe | Subscribe | Subscribe | Subscribe | Synchronoss sold Intralinks in October 2017 to Siris. |
| Subtotal | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Other | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Total | 8053 | 8264 | 2.6% | 100.0% |
Source: Apps Run The World, December 2016
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like eCommerce, Enterprise Performance Management, Sales Performance Management and Treasury and Risk, where first movers remain less established than those that for decades have been entrenched in functional areas like ERP, CRM and PLM.
Exhibit 4: Worldwide Enterprise Applications Market Forecast 2016-2021, By Functional Market, $M
Collaboration Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Collaboration applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest collaboration software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these collaboration customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
| Vendor | Customer Win | Industry | No. of employees | Revenue, $M | Old Product | New Product | Wins in |
|---|---|---|---|---|---|---|---|
| Box Inc. | University of Stirling | Higher Education | 1872 | 1000 | Legacy System | BOX collaboration in the cloud | 1Q16 |
| Box Inc. | Brainlab AG | Medical Devices | 1300 | 650 | Legacy System | BOX collaboration in the cloud | 1Q16 |
| Box Inc. | Faber & Faber | Publishing | 150 | 50 | Legacy System | BOX collaboration in the cloud | 4Q15 |
| Box Inc. | Chantelle Groupe | Textiles | 6200 | 2000 | Legacy System | BOX collaboration in the cloud | 4Q15 |
| Box Inc. | Endemol Shine Netherlands | Media Production | 2150 | 600 | Legacy System | BOX File-sharing and Collaboration | 2Q15 |
| Cisco Systems | AGCO Corporation | Manufacturing | 20000 | 7320 | Legacy System | Cisco Jabber, Cisco WebEx, Cisco Unified Contact Center Express | 4Q15 |
| Cisco Systems | NterOne | Education | 50 | 10 | Cisco WebEx Meeting Center | Cisco Collaboration Meeting Rooms (CMR) Cloud | 4Q15 |
| Cisco Systems | Great Ormond Street Hospital | Healthcare | 3500 | 1500 | Legacy System | Cisco TelePresence, Cisco Jabber | 4Q15 |
| Cisco Systems | Cimpress | Retail | 6200 | 1690 | Legacy System | Collaboration Endpoints, Cisco WebEx solution | 4Q15 |
| Cisco Systems | Altocloud | Computer Software | 50 | 10 | Legacy System | Cisco Spark | 1Q16 |
| Citrix | Campbell Law School | Higher Education | 200 | 50 | Legacy System | Citrix Podio | 4Q15 |
| Citrix | items GmbH | Computer Software | 280 | 50 | Legacy System | Citri ShareFile Cloud | 4Q15 |
| Citrix | The Watershed | Hospital & Health Care | 600 | 100 | Legacy System | CloudBridge Virtual WAN, NetScaler, ShareFile and XenApp/XenDesktop | 2Q16 |
| Citrix | TechniaTranscat | Information Technology and Services | 420 | 200 | Legacy System | GoToWebinar, GoToMeeting, ShareFile | 4Q15 |
| Citrix | Louisville Gas and Electric Company and Kentucky Utilities Corporation | Utilities | 3200 | 3000 | Legacy System | CitrixShareFile | 4Q15 |
| Dropbox | Expedia | Travel Technology | 18730 | 7200 | Dropbox on an individual basis | Dropbox Business | 2Q16 |
| Dropbox | Davidson College | Higher Education | 800 | 200 | Dropbox for Business, Yammer, and Google Apps accounts | Dropbox Business | 2Q16 |
| Dropbox | Servcorp Limited | Real Estate | 1000 | 400 | Legacy System | Dropbox Business | 1Q16 |
| Dropbox | Arizona State University | Higher Education | 5000 | 2000 | Legacy System | Dropbox Business | 3Q15 |
| Dropbox | News Corp. | Online Media | 25000 | 8290 | Google Apps | Dropbox Business | 4Q15 |
| Dropbox | Channel 4 | Broadcast Media | 819 | 979 | Legacy System | Dropbox Business | 2Q16 |
| Dropbox | Lagardère Active | Broadcast Media | 1000 | 900 | Legacy System | Dropbox Business | 2Q16 |
| Smoky Trout Farm Limited | Fishery | 10 | 5 | Legacy System | Google Apps for Work | 3Q16 | |
| Magazine Luiza | Retail | 17000 | 2250 | Legacy System | Google Apps for Work | 4Q15 | |
| Grupo Alfa (Colombia) | Chemicals | 68000 | 18000 | Legacy System | Google Apps for Work | 4Q15 | |
| Grow Marketing | Marketing and Advertising | 60 | 8 | Legacy System | Google Apps for Work | 3Q15 | |
| AllSaints | Apparel & Fashion | 3200 | 330 | Legacy System | Google Apps for Work | 2Q16 | |
| IBM | Deutsche Lufthansa AG | Airlines/Aviation | 120262 | 32056 | Legacy System | IBM Verse and Connections | 1Q16 |
| IBM | TruTrade | International Trade and Development | 10 | 1 | Legacy System | IBM Domino | 1Q16 |
| IBM | Flex Contact Center | Outsourcing | 11000 | 5000 | Legacy System | IBM Connections Cloud | 1Q16 |
| IBM | Calidad Pascual | Food & Beverages | 2300 | 1000 | Legacy System | IBM Connections | 1Q16 |
| IBM | Constance Hotels and Resorts | Hospitality | 3000 | 1500 | Legacy System | IBM Connections Cloud S1, IBM Verse | 3Q16 |
| Intralinks Holdings, Inc. | BPP University Law School | Higher Education | 500 | 50 | Legacy System | Intralinks VIA | 1Q16 |
| Intralinks Holdings, Inc. | Three Rivers Legal Services (TRLS) | Law Practice | 50 | 5 | Legacy System | Intralinks VIA | 4Q15 |
| Intralinks Holdings, Inc. | Système U | Retail | 65000 | 24000 | Legacy System | Intralinks VIA | 3Q15 |
| Intralinks Holdings, Inc. | Reynolds Porter Chamberlain (RPC) | Law Practice | 720 | 82 | Legacy System | Intralinks VIA | 1Q15 |
| Intralinks Holdings, Inc. | Formula Hybrid | Higher Education | 50 | 10 | Legacy System | Intralinks VIA | 1Q15 |
| Microsoft | Coles | Retail | 100000 | 31000 | Legacy System | Microsoft Office 365, Yammer, Microsoft SharePoint Online | 2Q15 |
| Microsoft | Expro | Oil & Energy | 4500 | 1400 | Legacy SharePoint environments | Microsoft SharePoint 2013, Microsoft Office 365 | 4Q15 |
| Microsoft | PulteGroup | Construction | 4542 | 6280 | Legacy System | SharePoint Online, Microsoft Office 365 Video | 1Q16 |
| Microsoft | Internet | 13598 | 19770 | Legacy System | Microsoft Office 365 | 3Q16 | |
| Microsoft | Virtusa | Computer Software | 9800 | 600 | Microsoft SharePoint 2010 | Microsoft Office 365, Microsoft SharePoint Online | 1Q15 |
| Oracle | Mythics | Information Technology and Services | 300 | 100 | Legacy System | Oracle Documents Cloud Service | 1Q16 |
| Oracle | Sutton Tools | Mechanical or Industrial Engineering | 300 | 100 | Legacy System | Oracle Documents Cloud Service | 1Q16 |
| Oracle | Australian Finance Group | Financial Services | 190 | 100 | Legacy System | Oracle Documents Cloud Service | 3Q15 |
| Oracle | Netcompany | Information Technology and Services | 750 | 1000 | Sharepoint | Oracle Documents Cloud Service | 2Q15 |
| Oracle | TekStream | Information Technology and Services | 100 | 20 | Legacy System | Oracle Documents Cloud Service | 2Q15 |
| SurveyMonkey | SunTrust Robinson Humphrey | Investment Banking | 2000 | 1000 | Legacy System | SurveyMonkey | 2Q15 |
| SurveyMonkey | Stella & Dot | Apparel & Fashion | 400 | 300 | Legacy System | SurveyMonkey | 4Q15 |
| SurveyMonkey | Jimdo GmbH | Internet | 200 | 50 | Legacy System | SurveyMonkey | 3Q15 |
Source: Apps Run The World, August 2016
Further Readings
An expanded version of this report covers the top 60+ Collaboration Software vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space. We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2016 product revenues.
Their 2016 results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market. We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world. The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
