The growth of the cloud collaboration industry is good for Microsoft

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  • Spending on on-premises and cloud-based collaboration technologies reached nearly $15 billion in Q2 2022, up 8% QoQ

Companies have reduced their share of collaboration investments on premises, doubling down on “as a service” cloud-based technologies. On-premises spending accounts for only 20% of the $15 billion, while nearly half goes to a small group of high-demand, high-growth services, including service-based unified communications, central communication and communication platform technology.

That’s good news for Microsoft, the market leader in collaboration technology, and a bad sign for Zoom, which enjoyed massive growth in its video service during the first two years of the pandemic. “While this market continues to grow, the growth rate has now slowed to the point where hosted video and VaaS are included in the mature services group,” said John Dinsdale, chief analyst at Synergy Research Group. know in an email notification.

As COVID-19 subsided in 2020, companies rushed to facilitate remote meetings. Zoom fits the bill and has become, like Kleenex for tissues, synonymous with video conferencing. Two years later, video meetings in the workplace are as ubiquitous as email, and businesses are adapting to the new normal – a hybrid workforce that’s more than just conference-capable, face-to-face. with the next big disruption.

Microsoft covers its high growth services base. In addition to the UCaaS capabilities enabled by Microsoft Teams, the company’s suite of services has grown to include Microsoft Digital Contact Center, a CCaaS service launched in July, and Azure Communication Service, a CPaaS service introduced in September. 2020.

Microsoft is well positioned for the paradigm shift. The combined impact of remote work and cloud migration has fueled the growth of Microsoft Azure, which holds almost a quarter of the market share of cloud infrastructure services, second only to Amazon Web Services and before Google Cloud.

Curtis Johnstone, Distinguished Engineer at Quest Software and Microsoft MVP, said in an interview with CIO Dive: “With this shift to the cloud, there is a wide range of services, features, and capabilities that users can use.

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