Market Trends of Enterprise Collaboration Industry
Cloud-based Deployment to Increase the Market Growth
Cloud-based deployment to workload is expected to be primarily driven by the consistent growth in the data generated. Several industry verticals are dealing with a massive volume of data. A data center is better suited for an organization that runs many kinds of applications and complex workloads for enterprise collaboration. It enables high productivity, with access to real-time data with all application tools.
Enterprise social collaboration (ESC) solutions have connected people worldwide in recent years. Social applications have been limited by technology and may work fine for one department but not for another. The advent of the cloud makes integrating social collaboration solutions more effortless. Most SMEs (small and medium enterprises) are adopting cloud deployment, as these solutions help SMEs avoid hardware, software, storage, and technical staff costs. It also helps in the scalability of data in the collaboration market.
The market players deliver cloud-based platforms with more features and functionality, avoiding organizations needing to integrate, implement, and manage several standalone systems. Such advantages of cloud-based deployment over on-premises are expected to boost the market growth. According to Flexera Software, in 2023, 47% of respondents are already running significant workloads on Amazon Web Services (AWS).
The expansion of organizations globally, increased productivity, and growth in the trend of bringing devices (BYOD) and the IoT are some significant factors expected to boost the growth of the cloud-based enterprise collaboration market. With the development of cloud-based Enterprise collaboration solutions, including telephony, teleconferences, and social collaboration software, enterprises collaborate efficiently and rapidly, maintain good relationships with clients, and immediately respond to queries, allowing market growth.
According to the Ministry of Corporate Affairs (India), as of June 2022, there were around 1.48 million registered companies in the South Asian country of India. In addition, According to BetterCloud, In 2022, organizations worldwide were using an average amount of 130 cloud-based software as a service (SaaS) applications. Since 2015, the number of SaaS apps enterprises use has constantly increased, which may further drive market growth.
Hybrid landscapes of public and private cloud applications require integration in a homogeneous cloud coordinated with the right tools. For instance, a German-based company, T-Systems, operates dynamic services for collaboration in the high-security private cloud, fully compliant with the country's strict data privacy and protection laws.
Therefore, the growing demand for applications across various sectors in emerging economies also boosts viability, providing relevant cloud security solutions. As most enterprises across regions engage in these technology services, the usage of the cloud collaboration market expands and drives the growth of the overall market.
North America to Experience Significant Market Growth
North America significantly holds the market share in the enterprise collaboration market due to the presence of market players such as Facebook Inc., Microsoft Corporation, Google LLC, and Slack Technologies Inc. These organizations provide technologically advanced solutions and products to small- and large-scale companies to boost their productivity by facilitating enhanced internal and external communications. This region has an advanced infrastructure capability, which has led it to become a significant revenue generator for the market. Such factors would further augment regional market growth in the coming years.
Companies in the region are moving beyond the public cloud and stepping into a new era of hybrid IT, which combines public cloud, private cloud, and traditional IT. These organizations have implemented a hybrid cloud strategy as it helps improve how they run their collaboration business.
In June 2022, Google Cloud launched a unique 'Google Public Sector' subsidiary focusing on the United States. The division will sell to national, state, and local governments and educational associations. This latest division will serve as a subsidiary of Google LLC and will specialize in bringing Google Cloud technologies, including Google Cloud Platform and Google Workspace, to US public sector customers.
In the current scenario, information is shared using mobile phones, video conferencing, instant messenger, and others that deliver information within a stipulated time. With collaborative communication, the congestion overload is reduced significantly, thus providing ease of contact. For better communication, firms are making every effort to have cloud and collaboration technology mutually available, which drives the growth of the Enterprise Collaboration Market.
According to Oberlo, North America has 225 billion social media users and 373 billion mobile subscriptions. This will enable enterprises to process memos and training resources and share industry-relevant news updates. Enterprise collaboration solutions and services have gained wide adoption in the region, particularly in the US, as the nation has been one of the earliest adopters of Social, Mobile, Analytics, and Cloud (SMAC) technologies.
Organizations such as the US Joint Forces Command, the US Department of Defense, and many local and state agencies have started to use collaborative technologies to build internal and external knowledge repositories. Companies are customizing their offerings to stay competitive in the market. US-based Dropbox announced its more recent version in August 2022, an enterprise software portal. It allows users to launch apps with shortcuts and use built-in Slack message-sending and Zoom video calls.
