Team Collaboration Paid User Base Doubles to 24 million User Licences in 2018

Team Collaboration Paid User Base Doubles to 24 million User Licences in 2018

MZA’s latest update to its Collaboration Solutions market analysis has been published and shows continued strong growth from team collaboration solutions in terms of both revenue and the active user base. Increasing to 24 million weekly active paid user licences as at the end of 2018, the revenue accrued in the year rose to US$ 786 million at end user levels.  The installed base of weekly active free user licences also saw strong growth, rising to 187 million users at the end of 2018.

Enabling users to chat both individually and within groups, team collaboration solutions allow for segmentation of conversations into specific channels based on workflows/projects, as well as offering native calling and conferencing features. Task management, file storage and project planning management may also be offered either natively or through integrations.

Having been talked about for several years, 2018 represented something of a breakout year for team collaboration solutions, with a lot of focus put into aiding wider adoption and a shift in focus from some of the largest enterprise instant messaging vendors towards the team experience.

Available as a standalone solution, part of a unified communications suite or as a part of a much wider productivity suite of applications, there is a wide discrepancy in how organisations consume team collaboration, although for the most part paid users will subscribe on a per user per month subscription basis. The standalone solutions tend to have a much higher price when compared to the solutions that are integrated into a suite of applications, with the productivity suite providers such as Microsoft and Google packaging their solutions with no or only marginal price increase.

North America accounted for the largest proportion of the weekly active paid user base at the end of 2018, while Asia Pacific represented the vast majority of the weekly active free user base.

Competitive Landscape

With a 40% share of the global weekly active paid user base at the end of 2018, Microsoft was the clear market leader as it began a planned migration programme from Skype for Business Online to Teams for many users.

Microsoft’s top-down approach was contrasted by Slack’s land and expand strategy, as the provider continued to see strong adoption and accounted for 22% of the total weekly active paid user base in 2018. Cisco with its Webex Teams solution was in third position with a 10% share.

In revenue terms, Slack’s much higher average revenue per user achieved meant that it represented over half the revenue accrued globally by team collaboration solutions in 2018.

 

 

 

 

 

 

 

 

MZA quote and citation policy:  All quoting and sharing of MZA information within this release is subject to MZA Ltd approval with the exception of press in limited form. Clients subscribing to the research are permitted to share all information internally, without pre-approval. Clients wishing to use quotes or MZA Ltd insight for external purposes should seek approval first from MZA Ltd. All other parties who may wish to share any extracts or images from MZA Ltd research should contact MZA Ltd for permission. Any Press citations should be accurate and any extracts from this release, abbreviating or paraphrasing must not be used out of context. At all times MZA Ltd (www.mzaconsultants.com) should be quoted as the source of any information utilised from this release. MZA reserves the right to change its citation policies at any time, without notice, and any policies stated do not constitute any waiver of MZA Ltd’s rights.

Further Information:  This press release is a summary of MZA’s UC Applications Competitive Environment 2019 – Collaboration Solutions analysis. This analysis focusses on team collaboration solutions that provide persistent individual and group chat messaging, as well as real time calling and conferencing capabilities. Only user licences that are deemed to be active during a seven day period, with the installed base volumes reflecting the peak weekly active installed base of user licences during December of each year. The complete analysis provides granular insight at a regional, country and segment level of all leading players active in the conferencing and team collaboration markets.

Additional MZA UC Applications volumes include Video Conferencing Endpoints (covering executive desktop, single-codec room systems and multi-codec endpoints) and Messaging & UC Clients (covering voicemail, unified messaging, enterprise instant messaging, desktop and mobile UC clients). Further MZA analysis services are available covering the Call Control, Hosted/Cloud Business Telephony, Contact Centre, Business Phones and the On-Site Business Mobility markets.

The analysis is based on a combination of input from vendors and MZA research analysis. Whilst all reasonable efforts have been made to ensure accuracy and completeness of the information provided, MZA Ltd accepts no liability for consequential loss.

About MZA

MZA specialises in the provision of marketing consultancy services to the telecommunications and IT industries at a European and Global level, with expertise covering a wide range of professional communications solutions.

For more information: Please contact General Manager: Stephanie Watson (swatson@mzaconsultants.com) on +44 1672 516 144 or visit www.mzaconsultants.com.