Q1 Conferencing SaaS Data Shows VaaS Growing and Zoom Zooming
RENO, Nev., June 16, 2020 (GLOBE NEWSWIRE) -- New data from Synergy Research shows the Q1 market for conferencing SaaS growing by 17% year on year to reach over $800 million, with all of the growth being down to a single vendor – Zoom. While other major vendors saw their revenues flat or somewhat reduced, Zoom grew by 148% from the first quarter of 2019. This is mostly due to the structure of the market, which consists of two main segments. The larger segment is the more traditional web/video conferencing, which is led by Cisco, LogMeIn and Microsoft. Revenues from this segment were almost flat, declining by 1% from last year. The smaller VaaS (Video as a Service) segment, on the other hand, jumped by 80% and is dominated by Zoom, whose Q1 market share was almost ten times the size of its nearest competitor. Overall, Cisco does still maintain its number one ranking in conferencing SaaS.
VaaS share of the conferencing SaaS market had been growing steadily, from 15% at the end of 2017, to 20% at the end of 2018, to 27% in the final quarter of 2019. In the first quarter of 2020, however, VaaS share of the total jumped another seven percentage points. Over the nextfive years Synergy’s forecast shows VaaS continuing to take an ever-greater share of the total market.
“The market was already heading in a direction that was favorable to VaaS generally and to Zoom specifically, but the impact of COVID-19 has turbo-charged that trend,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “Previously VaaS was starting to gain traction in the mid-market and with large enterprises, helping to expand the overall market opportunity. Now, we are suddenly seeing VaaS usage blossoming across the board. We expect to see those gains continue long after the effects of the pandemic have diminished.”
About Synergy Research Group
Synergy provides quarterly market sizing and segmentation data on enterprise collaboration and related markets, including company revenues by segment and by region. Synergy Research Group (www.srgresearch.com) helps marketing and strategic decision makers around the world via its unique insights and in-depth analytics.
To speak to an analyst or to find out more about how to access Synergy’s market data, please contact Heather Gallo @firstname.lastname@example.org or at 775-852-3330 extension 101.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/76303f7c-df1f-4cb3-a38d-b8217e0c4347
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