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October 05, 2005

Ping, Ping. Ka-Ching, Ka-Ching: IM Market To Double



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Businesses will rely more on over the next five years as use increases and drives related products to new heights, a new study shows.

The announced results of a study showing that the worldwide enterprise instant messaging market, which includes instant messaging server, security, compliance and management products, is forecast to grow from $315 million to $736 million in 2009.

The market grew 37 percent in terms of year-over-year revenue last year, according to the findings of "Worldwide Enterprise Instant Messaging Applications 2005-2009 Forecast and 2004 Vendor Shares: Clearing the Decks for Substantial Growth," released Wednesday. The study, which looked at opportunities and pitfalls influencing vendors and customers, indicates that media attention, hype and new product releases have helped drive the increase of value, necessity and use of the products.

Robert Mahowald, program director for IDC's Collaborative Computing research said there are already more than 28 million business users worldwide sending nearly 1 billion messages each day and even more crossover corporate consumers using the networks in the workplace.

"Especially in compliance-driven sectors like Wall Street, financial services and government, instant messaging is a critical differentiator," Mahowald said in a prepared statement. "In the next few years, IDC expects instant messaging – once the playthings of teenagers – to continue to grow into its role as a substantial business collaboration application."

The study credits market leaders for innovating products and expanding the market. Microsoft's LCS and Communicator products drove a frenzy of partnerships last year, while IBM's Sametime and Workplace Messaging offerings took instant messaging into larger, role-based uses. Jabber helped financial firms move from consumer use to enterprise use through its Extensible Messaging and Presence Protocol and Session Initiation Protocol. AOL held a strong position by delving into business services, according to IDC.

The study also found that demand for management and security had evolved beyond its previous focus on compliance because of new relationships between the market leaders and new vendors.

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