& cplSiteName &

Microsoft, Salesforce Dominating SaaS Market, Report Finds

Scott Ferguson
3/10/2017
50%
50%

The software-as-a-service (SaaS) market is more mature than other cloud computing services, but it still grew in the fourth quarter of 2016, pulling in $13 billion in global revenue, according to a new report from Synergy Research Group.

While Salesforce has helped define the SaaS market for years with its CRM offerings, it's actually Microsoft that is now dominating the market, with its own combination of collaboration, CRM and enterprise application software, such as Office 365, the March 9 report found.

Other top players in the SaaS market include SAP, Adobe, ADP, IBM, Workday, Intuit and Cisco.

Oracle and Google showed the most growth during the quarter, with Google benefiting from its G Suite apps offering, and the company spent a good deal of time at its Cloud Next '17 conference this week talking up improvements to its suite. (See Google Takes Fight to Amazon, Microsoft & Cisco.)

Overall, the global SaaS market grew 32% from the fourth quarter of 2015 to the fourth quarter of 2016, Synergy found. While that growth is less than the infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS), the report predicts SaaS offerings will double in the next three years. (See Public Cloud Spending Will Hit $122B in 2017 – Report.)

One significant reason for this growth is that businesses of all sizes are no longer in the market for on-premises software and want to buy the applications they need based on subscription. For years, Microsoft and Oracle dominated the enterprise app market with their offerings, but more nimble players such as Salesforce and Workday changed the game, and older software players have been forced to adjust. (See Microsoft, Oracle Layoffs Loom as Companies Pursue Cloud Plans.)

"Traditional enterprise software vendors like SAP, Oracle and IBM are all pushing to convert their huge base of on-premise software customers to a SaaS subscription relationship," John Dinsdale, chief analyst and research director at Synergy, wrote in the report. "Meanwhile relatively new cloud-based vendors like Workday and Zendesk are aggressively targeting the enterprise market and industry giants Microsoft and Google are on a charge to grow their subscriber bases, especially in the collaboration market.

Of the various SaaS offerings in the market, enterprise resource planning (ERP) grew the most during the quarter, about 40% year-over-year, according to the report. That part of the market is dominated by SAP, Oracle and Infor.

Collaboration grew a little more than 30% year-over-year, with Microsoft, Cisco and Google as the top players. CRM grew at a more modest 20% rate, and Salesforce, Microsoft and Zendesk ranked as the top vendors.

— Scott Ferguson, Editor, Enterprise Cloud. Follow him on Twitter @sferguson_LR.


CALLING ALL CLOUD, NFV AND SDN COMPANIES:
Make sure your company and services are listed free of charge at Virtuapedia, the comprehensive set of searchable databases covering the companies, products, industry organizations and people that are directly involved in defining and shaping the virtualization industry.


(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Australia's Optus on Back Foot After 'Anglo Saxon' Job Ad
Ray Le Maistre, Editor-in-Chief, 4/13/2018
Is Gmail Testing Self-Destructing Messages?
Mitch Wagner, Mitch Wagner, Editor, Enterprise Cloud, Light Reading, 4/13/2018
BDAC Blowback – Ex-Chair Arrested
Mari Silbey, Senior Editor, Cable/Video, 4/17/2018
Verizon: Lack of Interoperability, Consistency Slows Automation
Carol Wilson, Editor-at-large, 4/18/2018
AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
Animals with Phones
I Heard There Was a Dresscode... Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed