Unified Communications Revenues See Big Jump Amid COVID-19
Worldwide unified communications and collaboration (UC&C) revenue jumped 25.1% on a year-over-year basis, according to a new report from International Data Corporation (IDC).
Total UC&C revenue hit $11.5 billion in the second quarter of 2020, a 12.4% increase over the previous three months, according to the IDC Worldwide Quarterly Unified Communications & Collaboration QView.
The research firm credited COVID-19 for much of the increase, explaining that the pandemic prompted companies to provide secure, scalable communications and collaboration solutions and tools, due to the rapid increase in the number of employees working from home.
Many of these employees needed data-intensive video conferencing services as well as cloud access, driving UC collaboration revenue growth of 46.9% year-over-year and 22.4% from the previous quarter to $5.5 billion.
The report also said the Managed/Hosted Voice/UCaaS market grew sharply – up 20.4% and 7.4%, respectively. Enterprise videoconferencing systems had dropped in the previous period, but came back in the second quarter, growing 21.5%.
“In the second quarter, organizations worldwide turned to video and collaboration solutions in particular to meet work-from-home employee requirements during an extraordinary time of crisis,” said Rich Costello, IDC senior research analyst, unified communications and collaboration, in a prepared statement. In the second half of 2020, and beyond, as some organizations begin to move from crisis phase to recovery phase, IDC expects that worldwide UC&C growth will be driven by customers across all business size segments (small, midsize and large) with interest especially in cloud-based solutions for voice, video and collaboration, mobile applications, and digital transformation projects.”