In 2017, the top 10 Communications software vendors accounted for nearly 48% of the global Communications applications market which grew 0.3% to approach nearly $9.1 billion in license, maintenance and subscription revenues.
We ask the simple question: Who’s buying Communication applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Communications applications market is expected to reach $10 billion by 2022, compared with $9.1 billion in 2017 at a compound annual growth rate of 2%.
|Exhibit 2: Worldwide Communication Software Market 2017-2022 Forecast, $M|
|Year||2017||2022||2017-2022 CAGR, %|
Source: Apps Run The World, January 2019
Top 10 Communications Software vendors
Communications (Telecom services providing point-to-point contact) – Converged billing, Multi-party settlement, OSS, BSS, Financials, HR, Procurement
OSS and BSS replacements are likely to grow modestly as communications firms are slow to embrace 5G and the Cloud. New network management tools, subscription models and apps that enable carriers to better monetize their subscription base may see higher growth.
Here are the rankings of the top 10 Communications applications vendors in 2017 and their market shares.
|Rank||Vendor||2016 Communications Apps Revenues, $M||2017 Communications Apps Revenues, $M||YoY Growth||2017 Communications Market Share, %||Recent Developments|
|1||Ericsson||Subscribe||Subscribe||-11.5%||Subscribe||Ericsson’s OSS and BSS business is under pressure as migration to 5G is fraught with uncertainty among its customers and competition from vendors like Huawei is intensifying.|
|2||Microsoft||Subscribe||Subscribe||1.1%||Subscribe||Migrating legacy AX, C5, GP, NAV, and SL to Dynamics 365 for the Cloud remains the top priority for Microsoft’s evolving enterprise apps strategy, whose success will depend on strengthening ties with ISV partners in strategic verticals.|
|3||Oracle||Subscribe||Subscribe||3.4%||Subscribe||Oracle acquired Talari Networks for its SD-WAN solutions, allowing for improved network delivery capabilities for its full suite of IaaS, PaaS and SaaS products.|
|4||SAP||Subscribe||Subscribe||6.4%||Subscribe||SAP was on track to sign more than 10,000 customers including many listed below for its next-generation ERP S/4HANA by end of 2018 with 40% of the latest additions being considered net new wins for the vendor.|
|5||Amdocs||Subscribe||Subscribe||8.7%||Subscribe||Amdocs acquired Vubiquity for premium content services and technology solutions for carriers, while partnering with Amazon Connect to expand their reach into Contact Center As A Service market.|
|6||Salesforce||Subscribe||Subscribe||23.2%||Subscribe||The recent buy of MuleSoft will be instrumental for Cloud integration, especially in helping customers extend into non-Salesforce systems for key verticals as well as those that Salesforce is still playing catch-up.|
|7||NetCracker Technology, a subsidiary of NEC Corporation||Subscribe||Subscribe||7.7%||Subscribe||NetCracker unveiled Netcracker Business Cloud, which enables telcos and carriers to access a full suite of Cloud-based offerings including Software Defined Wide Area Networking, Network Function Virtualization along with OSS, BSS, portals, apps store as well as professional services.|
|8||Open Text Corporation||Subscribe||Subscribe||23.0%||Subscribe||Aligns with Amazon Connect to expand into Contact Center As A Service market with OpenText Qfiniti.|
|9||Synchronoss||Subscribe||Subscribe||-2.6%||Subscribe||Synchronoss acquired Intralinks for secure collaboration and Dixons Carphone plc’s honeybee software business for optimizing customer experience.|
|10||Genesys||Subscribe||Subscribe||40.0%||Subscribe||Genesys PureCloud for customer engagement and communications, signed deals with more than 500 customers in the first three quarters of 2018, resulting in nearly 1,300 to date.|
Source: Apps Run The World, January 2019
Custom data cuts related to the Communications Applications market are available:
- Top 700 Communications Applications Vendors and Market Forecast 2017-2022
- 2017 Communications Applications Market By Functional Market (16 Markets)
- 2017 Communications Applications Market By Country (USA + 45 countries)
- 2017 Communications Applications Market By Region (Americas, EMEA, APAC)
- 2017 Communications Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2017 Communications Applications Market By Customer Size (revenue, employee count, asset)
- 2017 Communications Applications Market By Channel (Direct vs Direct)
- 2017 Communications Applications Market By Product
Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.
Communications Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Communications Software 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 Communications 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 Communications 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.
|11880 Solutions AG||Communication||750||$47.7M||Germany||Oracle||Oracle Autonomous Data Warehouse||Autonomous Database|
|T-Mobile||Communication||51000||$40.32B||United States||Adobe Systems||Adobe Experience Manager||Web Content Management|
|CityFibre||Communication||163||$45.0M||United Kingdom||Coupa Software||Coupa Procurement||Procurement|
|Telenor||Communication||30000||$13.60B||Norway||Coupa Software||Coupa Procurement||Procurement|
|Lycamobile||Communication||5000||$1.50B||United Kingdom||OpenText||OpenText Release 16||Enterprise Information Management|
|Saudi Telecom Company||Communication||17000||$13.00B||Saudi Arabia||Oracle||Oracle HCM Cloud||Human Capital Management|
|Rostelecom||Communication||170000||$5.23B||Russia||SAP||SAP SuccessFactors Employee Central||Human Capital Management|
|Telefónica||Communication||125000||$11.95B||Spain||SAP||SAP SuccessFactors Employee Central||Human Capital Management|
|GoCompare||Communication||200||$20.0M||United Kingdom||UNIT4||Unit4 Prevero||Enterprise Performance Management|
|Cisco||Communication||74200||$49.33B||United States||SAP||SAP Leonardo||IoT Platform|
|Cisco||Communication||74200||$49.33B||United States||SAP||SAP Leonardo Machine Learning||Machine Learning Platform|
|Time Warner Cable||Communication||24800||$28.30B||United States||Adobe Systems||Adobe Experience Manager||Web Content Management|
|T-Mobile||Communication||51000||$40.32B||United States||ADP||ADP Vantage HCM||Human Capital Management|
|Motorola||Communication||13000||$5.66B||United States||Anaplan||Anaplan||Planning and Performance Management Platform|
|Frontier Communications||Communication||20400||$5.56B||United States||Cornerstone OnDemand||Cornerstone Learning Suite||Learning Management System|
|HTC||Communication||13332||$3.80B||Taiwan||Digital River||Digital River Cloud-Based Subscription Billing and Commerce||Subscription Billing and Commerce|
|Swisscom||Communication||21637||$11.86B||Switzerland||Ericsson||Ericsson Cloud Manager||OSS Management System|
|Telefónica||Communication||125000||$11.95B||Spain||Ericsson||Ericsson Cloud Manager||OSS Management System|
|Phone.com||Communication||72||$10.0M||United States||Five9||Five9 Cloud||Customer Service and Support|
|DIRECTV||Communication||243620||$146.80B||United States||FleetMatics||FleetMatics REVEAL Plus||Fleet Management Software|
|Deutsche Telecom||Communication||220821||$69.23B||Germany||Genesys||Genesys Customer Experience Platform||Customer Experience Platform|
|Etisalat||Communication||30000||$14.00B||Saudi Arabia||Genesys||Genesys Customer Experience Platform||Customer Experience Platform|
|Suddenlink Communications||Communication||3500||$2.33B||United States||Genesys||Genesys Customer Experience Platform||Customer Experience Platform|
|Tata Sky||Communication||2400||$740.0M||India||Genesys||Genesys Customer Experience Platform||Customer Experience Platform|
|U.S. Cellular||Communication||6400||$4.00B||United States||Genesys||Genesys Customer Experience Platform||Customer Experience Platform|
|Vodacom||Communication||7786||$5.40B||South Africa||Genesys||Genesys Customer Experience Platform||Customer Experience Platform|
|Telstra||Communication||36165||$26.70B||Australia||IBM||IBM Emptoris||Contract Management|
|Motorola||Communication||13000||$5.66B||United States||Interactive Intelligence||PureCloud||Customer Engagement Platform|
|T-Mobile||Communication||51000||$40.32B||United States||Kronos||Kronos Workforce Ready||Human Capital Management|
|ice.net||Communication||150||$20.0M||Norway||Microsoft||Microsoft Dynamics NAV||Enterprise Resource Planning|
|Vodafone Group||Communication||101440||$47.87B||United Kingdom||Microsoft||LinkedIn Talent Solutions||Talent Management|
|Execulink Telecom||Communication||240||$25.0M||Canada||NetSuite||NetSuite CRM+||Customer Relationship Management|
|Fonality||Communication||239||$215.0M||United States||NetSuite||NetSuite CRM+||Customer Relationship Management|
|NoaNet||Communication||160||$20.0M||United States||NetSuite||NetSuite CRM+||Customer Relationship Management|
|Palo Alto Networks||Communication||3499||$1.40B||United States||NetSuite||NetSuite CRM+||Customer Relationship Management|
|Tempest Telecom Solutions||Communication||200||$22.0M||United States||NetSuite||NetSuite CRM+||Customer Relationship Management|
|BT Global Services||Communication||102500||$26.78B||United Kingdom||Nice Systems||NICE Voice of the Customer||Customer Feedback Systems|
|EE||Communication||15000||$7.90B||United Kingdom||Nice Systems||NICE Voice of the Customer||Customer Feedback Systems|
|Oi S/A||Communication||20000||$12.00B||Brazil||Nice Systems||NICE IEX Workforce Management||Workforce Management Software|
|Orange S.A.||Communication||157000||$45.00B||France||Nice Systems||NICE Customer Engagement Analytics||Customer Engagement|
|Virgin Media||Communication||14000||$6.00B||United Kingdom||Nice Systems||NICE Voice of the Customer||Customer Feedback Systems|
|ARRIS||Communication||8520||$5.30B||United States||Oracle||Oracle Agile PLM||Product Lifecycle Management|
|ARRIS||Communication||8520||$5.30B||United States||Oracle||Oracle Service Cloud (ex RightNow)||Customer Experience Platform|
|CinemaNow||Communication||120||$55.0M||United States||Oracle||Oracle Service Cloud (ex RightNow)||Customer Experience Platform|
|JTsocial||Communication||600||$281.0M||United Kingdom||Oracle||Oracle HCM Cloud||Human Capital Management|
|Orange France||Communication||157000||$42.00B||France||Oracle||Oracle ERP Cloud||Enterprise Resource Planning|
|Transit Wireless||Communication||150||$25.0M||United States||Oracle||Oracle ERP Cloud||Enterprise Resource Planning|
|Transit Wireless||Communication||150||$25.0M||United States||Oracle||Oracle EPM Cloud||Enterprise Performance Management|
|CableCom Networking||Communication||100||$10.0M||United Kingdom||Sage||Sage X3||Enterprise Resource Planning|
|AT&T||Communication||273140||$164.00B||United States||Salesforce||Service Cloud||Customer Service and Support|
|Avaya||Communication||17000||$4.37B||United States||Salesforce||Service Cloud||Customer Service and Support|
|Bell||Communication||55000||$16.05B||Canada||Salesforce||Service Cloud||Customer Service and Support|
|Colt||Communication||4750||$1.50B||United Kingdom||Salesforce||Service Cloud||Customer Service and Support|
|Comcast Cable (Xfinity)||Communication||153000||$74.51B||United States||Salesforce||Service Cloud||Customer Service and Support|
|Equinix||Communication||3996||$2.73B||United States||Salesforce||Service Cloud||Customer Service and Support|
|InterCall||Communication||26430||$2.60B||United States||Salesforce||Service Cloud||Customer Service and Support|
|Motorola||Communication||13000||$5.66B||United States||Salesforce||Service Cloud||Customer Service and Support|
|NTT||Communication||241593||$102.68B||Japan||Salesforce||Service Cloud||Customer Service and Support|
|Panasonic USA||Communication||330767||$69.92B||United States||Salesforce||Service Cloud||Customer Service and Support|
|Virgin Media||Communication||14000||$6.00B||United Kingdom||Salesforce||Salesforce CRM||Customer Relationship Management|
|Virgin Media||Communication||14000||$6.00B||United Kingdom||Salesforce||Service Cloud||Customer Service and Support|
|Vodafone Group||Communication||101440||$47.87B||United Kingdom||Salesforce||Service Cloud||Customer Service and Support|
|Ziggo||Communication||2571||$2.00B||Netherlands||Salesforce||Service Cloud||Customer Service and Support|
|Anevia||Communication||200||$30.0M||France||SAP||SAP Business ByDesign||Enterprise Resource Planning|
|Cisco||Communication||74200||$49.33B||United States||SAP||SAP Predictive Analytics||Analytics and BI|
|DNA Oy||Communication||1500||$850.0M||Finland||SAP||SAP Commerce Cloud||eCommerce & Omni-Channel Commerce Solution|
|NTT DoCoMo||Communication||27464||$4.31B||Japan||SAP||SAP S/4 HANA||Enterprise Resource Planning|
|OROLIA||Communication||400||$80.0M||France||SAP||SAP Business ByDesign||Enterprise Resource Planning|
|Rostelecom||Communication||170000||$5.23B||Russia||SAP||SAP SuccessFactors Recruiting Management||Recruiting|
|Rostelecom||Communication||170000||$5.23B||Russia||SAP||SAP SuccessFactors Onboarding||Onboarding|
|Rostelecom||Communication||170000||$5.23B||Russia||SAP||SAP SuccessFactors Performance & Goals||Performance & Goals Management|
|Rostelecom||Communication||170000||$5.23B||Russia||SAP||SAP SuccessFactors Succession & Development Solutions||Succession & Development Management|
|Rostelecom||Communication||170000||$5.23B||Russia||SAP||SAP SuccessFactors Learning||Learning management system|
|Telefónica||Communication||125000||$11.95B||Spain||SAP||SAP SuccessFactors Recruiting Management||Recruiting|
|Telefónica||Communication||125000||$11.95B||Spain||SAP||SAP Success Factors LMS||Learning Management System|
|Telefónica||Communication||125000||$11.95B||Spain||SAP||SAP SuccessFactors Performance & Goals||Performance & Goals Management|
|TELES AG Informationstechnologien||Communication||56||$100.0M||Germany||SAP||SAP Business ByDesign||Enterprise Resource Planning|
|Saudi Telecom Company||Communication||17000||$13.00B||Saudi Arabia||Teradata||Teradata Appliance for Hadoop||Data Warehouse Appliance|
|T-Mobile||Communication||51000||$40.32B||United States||Workday||Workday HCM||Human Capital Management|
|Vodafone Group||Communication||101440||$47.87B||United Kingdom||Zendesk||Zendesk||Customer Service and Support|
Source: Apps Run The World, January 2019
An expanded version of this report covers the top 700+ Communications 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 2015-2017 product revenues.
Their 2017 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.
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.