Microsoft Leads in SaaS Market; Salesforce, Adobe, Oracle and SAP Follow
RENO, NV, August 31, 2017
New Q2 data from Synergy Research Group shows that the enterprise SaaS market grew 31% year on year to reach almost $15 billion in quarterly revenues, with collaboration being the highest growth segment. Microsoft remains the clear leader in overall enterprise SaaS revenues, having overtaken long-time market leader Salesforce a year ago. Microsoft was already rapidly growing its SaaS revenues, but in Q2 its acquisition of LinkedIn gave its SaaS business a further boost. In terms of overall SaaS market rankings, Microsoft and Salesforce are followed by Adobe, Oracle and SAP, with other leading companies including ADP, IBM, Workday, Intuit, Cisco, Google and ServiceNow. It’s notable that the market remains quite fragmented, with different vendors leading each of the main market segments. Among the major SaaS vendors those with the highest overall growth rates are Oracle, Microsoft and Google.
In many ways the enterprise SaaS market is now mature. However, spending on SaaS remains relatively small compared to on-premise software, meaning that SaaS growth will remain buoyant for many years. Synergy forecasts that the SaaS market will double in size over the next three years, with strong growth across all segments and all geographic regions.
“IaaS and PaaS markets tend to get more attention and are indeed growing more rapidly, but the SaaS market is substantially bigger and will remains so for many years,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “Traditional enterprise software vendors like Microsoft, SAP, Oracle and IBM still have a huge base of on-premise software customers and they are all now pushing to aggressively convert those customers to a SaaS-based consumption model. At the same time, born-in-the-cloud software vendors like Workday, Zendesk and ServiceNow continue to light a fire under the market and help to propel enterprise spending on SaaS.”
About Synergy Research Group
Synergy Research Group, now part of TechInsights, delivers quarterly analyses of global IT and Cloud markets, offering detailed breakouts of vendor revenues and shipments by segment and region. Market shares and forecasts are provided through Synergy Interactive Analysis (SIA™) — the industry's only fully proprietary SaaS platform purpose-built for market share and forecasting analytics.
For more than 25 years, Synergy has been a trusted source of quantitative research and market intelligence across emerging communications and technology sectors. By combining syndicated research with specialized consulting, we deliver actionable intelligence to marketing and strategy executives worldwide.
A trusted source of accurate market data, Synergy is cited by industry leaders as well as leading financial, business, and trade publications such as The Economist, The New York Times, The Wall Street Journal, United States Federal Reserve Board, NPR, Forbes, Bloomberg, Financial Times, Bank of England, Fortune, and The Guardian.
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