Hosted/Cloud Market Leaders

Microsoft Market Share: 9 Percent

Cisco Market Share: 5.5 Percent

AT&T Market Share: 4.5 Percent

Microsoft continues to hold its strong leadership position in the hosted/cloud UC&C space with 9 percent market share, 3.5 points ahead of Cisco, in second place.

"Where Microsoft has had strength up to now is in its software approach to traditional UC telephony," said Duke. "We see many large enterprises that have invested in Microsoft's premise-based solutions, which used to be called Lync. Where we see Microsoft's growth potential moving forward is in its vision to provide cloud delivery of its Lync technology to enterprises over its expanding buildout of Microsoft Azure data centers."

Duke said Cisco's new cloud strategies around Spark and its new Spark Board "plant the seeds for more growth" throughout 2017.