Cloud Collaboration Market

The cloud collaboration market size is estimated to grow from USD 23.39 billion in 2016 to USD 42.57 billion by 2021, at an estimated CAGR of 12.7% from 2016 to 2021. In the current scenario, the adoption of cloud-based technologies has increased significantly which has further increased the demand for cloud collaboration solutions. The objectives of the report are to define, describe, and forecast the cloud collaboration market on the basis of solutions, services, deployment models, organization size, verticals, and regions to provide detailed information regarding the key factors influencing market growth (drivers, restraints, opportunities, and challenges) and to forecast the market size of market segments with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), the Middle East and Africa (MEA), and Latin America. The base year considered for the study is 2015 and the market size is forecast is from 2016 to 2021.

Market Dynamics

Drivers

• Increased mobility and growing trend of bring your own device
• Increased savings, and workforce productivity

Restraints

• Lack of security
• High dependency on Internet

Opportunities

• Lower capital and operating expenditure
• High adoption rate in small and medium enterprises

Challenges

• Stiff Competition among vendors
• Redesigning the network for cloud involves cost

Increased mobility and growing trend of BYOD drives the global reed sensor market

Enterprise mobility and BYOD are the emerging trends that enable users to connect from any remote location. These trends as well as the availability of smart devices such as tablets, smartphones, laptops, phablets, and smart watches, enable employees to conduct live meetings, give presentations, and impart training from any place using any device. This enables the users to maintain healthy relationships with clients and respond quickly as they can have immediate access to the devices. Enterprises are adopting BYOD and enterprise mobility for various reasons such as increased efficiency, reduced IT expenses, and real-time responses. Thus, with the availability of cloud collaboration solutions via telephony, conferencing, and social collaboration software, enterprises can collaborate easily and quickly. This has also enabled the organizations to make quick decisions and exercise better control by contacting the suppliers and partners at any time as per the requirement. It is expected that by 2016, more than 60% of the enterprises will implement BYOD to reduce the investments on purchasing new laptops or tablets. More than half of North American and European companies are developing BYOD programs in response to workforce demand.

Following are the objectives of the report

• To define and segment the global cloud collaboration market
• To describe and forecast the global cloud collaboration market on the basis of solutions, services, deployment models, organization size, verticals, and regions
• To forecast the market size of the five main regional segments, namely North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA),and Latin America
• To strategically analyze sub-segments with respect to individual growth trends, future prospects, and contribution to the total market
• To provide a detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
• To analyze the opportunities in the market for stakeholders and to provide details of competitive landscape for major players
• To strategically profile key players and comprehensively analyze their core competencies1 and positioning
• To track and analyze competitive developments such as Mergers & Acquisitions (M&A), new product developments, and partnerships & collaborations in the market

The research methodology used to estimate and forecast the cloud collaboration market begins with capturing data on key vendor revenues through secondary research. The vendor offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global cloud collaboration market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and sub-segments which are then verified through primary research by conducting extensive interviews with key people such as CEOs, VPs, directors, and executives.  The data triangulation and market breakdown procedures were then employed to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments. The breakdown of profiles of primary is depicted in the below figure:

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The cloud collaboration market ecosystem comprises cloud collaboration solution vendors, such as IBM Corporation (Armonk, New York, U.S.); Microsoft Corporation (Redmond, Washington, U.S.); Cisco Systems (San Jose, California, U.S.); Google Inc. (Mountain View, California, U.S.); Oracle Corporation (Redwood City, California, U.S.); Salesforce.com (San Francisco, California, U.S.); Jive Software (Palo Alto, California, U.S.); IntraLinks Holdings, Inc. (New York, U.S.); Mitel Networks (Ottawa, Canada); and Box (Redwood City, California, U.S.). Further, the report also includes key innovators such as Citrix Systems, Inc. (Fort Lauderdale, Florida, U.S.); Broadsoft, Inc. (Gaithersburg, Maryland, U.S.); and HighQ Solutions Limited (London, U.K.) who offer cloud collaboration solutions to end users to cater to their unique business requirements and security needs.

Major Market Developments

• In May 2016, Intralinks announced new integration and security capabilities to enhance its content collaboration network, which would solve three major challenges for its customers: global regulatory compliance, data privacy, and acceleration of business beyond geographical boundaries
• In March 2016, Oracle’s latest addition to the SaaS portfolio is Oracle Content and Process Cloud. It would enable users to easily collaborate from anywhere, streamline business automation, and communicate more effectively.
• In January 2016, Box and Microsoft entered into a partnership to deliver seamless experiences in the cloud. Box introduced new integrations, such as Box for Office Online, Box integration with Office for iOS, and Box integration with Outlook.com, with Microsoft that enables seamless collaboration across devices and platforms.

Key Target audience

• Cloud solution providers
• Government agencies
• System integrators/migration service providers
• Consultants/consultancies/advisory firms
• Internet application developers and service providers
• Support and maintenance service providers
• Telecommunication service providers
  

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Scope of the Report

The cloud collaboration market report is broadly segmented into the following solutions, services, deployment models, organization size, verticals, and regions.

Global Cloud collaboration Market, by Solution

• Unified Communication and Collaboration
• Document Management System
• Project and Team Management
• Enterprise Social Collaboration

Global Cloud collaboration Market, by Service

• Training, Consulting & Integration
• Support and Maintenance

Global Cloud collaboration Market, by Deployment Model

• Private Cloud
• Public Cloud
• Hybrid Cloud

Global Cloud collaboration Market, by Organization Size

• Large Enterprises
• Small and Medium Enterprises (SMEs)

Global Cloud collaboration Market, by Vertical

• BFSI
• Consumer Goods And Retail
• Education
• Government and Public Sector
• Healthcare and Life Sciences
• Manufacturing
• Media and Entertainment
• Telecommunication and ITES
• Others

Global Cloud collaboration Market, by Region

• North America
• Europe
• APAC
• MEA
• Latin America

Critical questions which the report answers

• What are new application areas which the cloud collaboration companies are exploring?
• Which are the key players in the market and how intense is the competition?

Available Customizations

With the given market data, MarketsandMarkets offers customizations based on the company-specific needs. The following customization options are available for the report:

Geographic Analysis

• Further breakdown of the APAC market into countries contributing 75% to the regional market size
• Further breakdown of the North American market into countries contributing 75% to the regional market size
• Further breakdown of the Latin American market into countries contributing 75% to the regional market size
• Further breakdown of the MEA market into countries contributing 75% to the regional market size
• Further breakdown of the European market into countries contributing 75% to the regional market size

Company Information

• Detailed analysis and profiling of additional market players (Up to 5).

MarketsandMarkets forecasts the cloud collaboration market size to grow from USD 23.39 billion in 2016 to USD 42.57 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 12.7% from 2016 to 2021. The emerging trend of mobility & BYOD and the need for secure & efficient solutions which can enhance the employee’s productivity are the key driving factors of cloud collaboration market. With the rising adoption of cloud-based solutions among SMEs, cloud collaboration market is expected to have considerable growth opportunities during the forecast period.

The scope of this report covers the cloud collaboration market by solution, service, deployment model, organization size, vertical, and region. Unified Communication & Collaboration solution is expected to have the largest market share and would dominate the cloud collaboration market from 2016 to 2021 as it enables users to interact, coordinate tasks, and share information. Enterprise social collaboration solution is expected to play a major role and would grow at the highest CAGR during the forecast period as it aims at connecting people across teams and enterprises.

Training, consulting, and integration services segment is expected to dominate the services segment of the cloud collaboration market and contribute the largest market share, whereas support & maintenance services is expected to grow the fastest during the forecast period.

The cloud collaboration solutions are being increasingly adopted in various verticals, such as manufacturing, education, and others, which have led to the growth of the market across the globe. The media and entertainment sector is expected to grow at the highest rate from 2016 to 2021 in the cloud collaboration market, whereas Banking, Financial services, and Insurance (BFSI) sector is expected to dominate the market with the largest market share in 2016.

Cloud collaboration solutions applications in BFSI, IT and Telecom to drive the growth of cloud collaboration market

BFSI

The cloud collaboration solutions allow investment banks, private equity, venture capital, asset managers, and insurance firms to securely exchange business information with the partners, clients, and customers. In addition, the cloud-based collaborative solutions provide workflow and content governance processes to power banks, insurance firms, and investment and advisory firms. The financial sector is undergoing huge transformation and it has become the need of an hour to be more agile, innovative, collaborative, and customer centric. The cloud collaboration vendors such as Jive Software, Box, HighQ, and others enable the BFSI industry to deliver high end customer experience, reduce operating costs, and meet the regulatory and compliance requirements. Cloud collaboration can improve customer service offerings for this sector via enhanced online customer care and improved customer self-service.

Consumer Goods and Retail

The consumer goods and retail industry are facing the challenge of managing fluctuating and seasonal demand for various products. The retailers are looking for ways to reduce cost through inventory and supply chain management optimization. The cloud collaboration solution has enabled this industry to achieve key initiatives such as customer retention, customer relationship management, brand awareness, and brand loyalty. The scalability feature of the cloud collaboration solution assists the retailers to optimize their supply chain cost by enabling cost-effective cloud collaboration solution within the store, with the wholesalers, and with the manufacturers. Furthermore, the retailers can provide real-time responses by using enterprise social collaboration solution to build customer loyalty and brand perception. The cloud collaboration solution also supports retailers in providing personalized shopping experiences to their users via instant messaging, mobility, customer self-service, and various other channels. The major vendors catering this industry vertical comprises Box, Cisco, IBM, and others.

Education

The educational institutions are witnessing the need to facilitate communication and collaboration among students, researchers, teachers, professors, and others to make learning easy from any remote area. Online and distance learning, e-textbooks, video, and social media are the latest concepts in the education industry. The cloud collaboration solutions provide a variety of tools such as instant messaging, web conferencing, telepresence, virtual classrooms, and others to help manage distance learning programs. The students can participate in multiple projects with the help of cloud collaboration solutions irrespective of location. The cloud-based collaboration solutions also enable the educational institutions in reducing the capital and operating expenditure thereby using the capital for some other useful requirements. The key players offering cloud collaboration solutions and services to this vertical includes Cisco, Box, HyperOffice, and others.

Government and Public Sector

The cloud collaboration solutions enable team collaboration among central governments, federal governments, local authorities, and other public bodies. These solutions offer numerous benefits such as streamlining communications, reducing costs, conducting investigations and inspections, security, monitoring and controlling capabilities. The cloud-based communication and collaboration solutions allow the public sector organization to save infrastructure cost and provide flexibility to the employees, teams, partners, and vendors on any device irrespective of location. Government organizations have to ensure that they provide all the services to the citizens as early as possible, and it has been made possible due to the availability of cloud collaboration solutions. The major companies catering to this industry vertical comprises HyperOffice, Jive Software, Box, and others.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming industry applications for cloud collaboration solutions?

North America is expected to dominate the cloud collaboration market by having the largest market share from 2016 to 2021 due to the presence of a large number of cloud-based solution vendors. Latin America offers potential growth opportunities as there is rise in technology penetration and organizations are focusing on offering better customer experience to gain competitive advantage.

However, lack of security and downtime in cloud act as the restraining factors for the cloud collaboration market to grow. Some of the major challenges in the cloud collaboration market are stiff competition and redesigning the network for cloud. The major vendors in the cloud-based cloud collaboration market include IBM Corporation (Armonk, New York, U.S.); Microsoft Corporation (Redmond, Washington, U.S.); Cisco Systems (San Jose, California, U.S.); Google Inc. (Mountain View, California, U.S.); Oracle Corporation (Redwood City, California, U.S.); Salesforce.com (San Francisco, California, U.S.); Jive Software (Palo Alto, California, U.S.); IntraLinks Holdings, Inc. (New York, U.S.); Mitel Networks (Ottawa, Canada); and Box (Redwood City, California, U.S.). These players have adopted various strategies, such as new product launches, partnerships, agreements, collaborations, mergers & acquisitions, and business expansions to cater to the needs of the cloud-based cloud collaboration market. The report also includes key innovators in the market, such as Citrix Systems, Inc. (Fort Lauderdale, Florida, U.S.); Broadsoft, Inc. (Gaithersburg, Maryland, U.S.); and HighQ Solutions Limited (London, U.K.).

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