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September 9, 2014

Cisco outperforms Microsoft in the global collaboration market

The networking firm increases revenue by 2% to $7.7bn.

By Amy-Jo Crowley

Cisco has overtaken Microsoft as leader in the global collaboration market, as the networking giant increased revenue by 2% to $7.7bn in the second quarter.

The San Jose-based company now claims 16% of the overall market by revenue, driven by increased demand for hosted voice and UCaaS applications, enterprise social networking and hosted web conferencing, according to Synergy Research Group.

Jeremy Duke, Synergy’s founder and Chief Analyst, said: "In Q2 Cisco bounced back from a poor start to the year in the enterprise voice segment and also saw strong growth in WebEx, though telepresence revenues remained soft."

Microsoft ranked second with its revenue accounting for 15.8%, followed by Avaya with 6% and IBM with 4.2% of total market sales.

"One issue that Cisco faces is that a substantial amount of its collaboration revenue comes from mature markets which are flat or declining. In contrast Microsoft achieved sequential growth in all ten of the segments in which it is active, and grew year on year in nine of them," said Duke.

Although Cisco recaptured the lead, its second-quarter market share was still down compared to the same period last year, when sales accounted for nearly 18% of total market revenue.

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