Microsoft and Zoom‘s UC and collaboration businesses are growing while Cisco‘s is shrinking, according to the latest market report from the International Data Corporation (IDC).
The IDC has reported that Microsoft’s UCC revenues rose 20 percent year over year to $6.8 billion in Q2 2023, comprising an almost 43 percent share of the market, while Zoom’s revenues in the market increased 2.5 percent year over year over the same timeframe to $1.1 billion. Zoom represents a 6.8 percent market share.
Meanwhile, Cisco’s UCC revenues declined 19.3 percent year over year in this quarter to $951 million, with a market share of six percent.
The IDC also noted that global UCC revenues grew 6.9 percent in the second quarter of 2023 to $15.9 billion. For the full year 2023, worldwide UCC revenues are estimated to grow 8.6 percent year over year to $64.7 billion. IDC states that this marks a revision of around $500 million from the previous quarter’s forecast.
Jitesh Gera, Research Manager, Unified Communications and Collaboration at IDC, commented:
Remote collaboration needs continue to grow and evolve with the changing dynamics led by the return to work, coupled with new innovation from vendors, especially on the AI front. Moreover, public cloud Unified Communications as a Service (UCaaS) solutions integrated with telephony continue to be in strong demand as businesses increasingly look to unify their employee and customer communication channels with a strong foundation in voice.”
In volume terms — which the IDC defines as units, lines, licenses or seats — the global UCC market grew 11.4 percent year over year to 620.7 million. Compared to Q1 2023, the gulf between value and volume growth rates grew further, illustrating ongoing downward pricing pressure per unit sale.
“The hardware market is currently in flux as vendors look to develop innovative meeting room equipment to offset the sharp declines in IP telephones and enterprise videoconferencing systems,” Gera added.
CPaaS’s 2023
2023 continues to be a notable year for CPaaS, with IDC’s UCC quarterly report also highlighting that global CPaaS market revenues increased 13.2 percent year over year and 4.6 percent sequentially to $3.8 billion in the second quarter of 2023.
“This segment is evolving as buyers focus on tangible benefits as well as automation across a diverse range of channels,” said Courtney Munroe, Research Vice President, Worldwide Telecommunications Research at IDC.
Messaging accounts for the majority of the CPaaS market, comprising a 67 percent share. For the full year 2023, CPaaS revenues are estimated to increase 12.4 percent year over year to $15.6 billion.
Of the companies leading the way in CPaaS, Twilio continues to represent the CPaaS market most prominently, with a 24.1 percent market share. Twilio’s revenues exceeded $913 million this quarter, increasing 15.8 percent year over year.
Sinch follows Twilio as the second most prominent CPaaS vendor with a 15.8 percent market share, while its revenue grew 0.8 percent year over year to $600 million in Q2 2023.
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