Microsoft remains the clear leader in the overall enterprise software-as-a-service (SaaS) market, with the technology giant's acquisition of LinkedIn to further increase revenue in the second quarter of 2017.
According to Synergy Research's findings, the SaaS business area grew 31% this year to reach almost $ 15 billion in quarterly earnings, with collaboration being the highest growth segment.
From a vendor perspective, Microsoft continued to expand its lead on the market after Salesforce took over a year ago, followed by Adobe, Oracle and SAP, with other leading companies such as ADP, IBM, Workday, Intuit, Cisco , Google and ServiceNow. .
"It is striking that the market remains fairly fragmented, with different sellers leading each of the main market segments," said Mr. John Dinsdale, chief analyst of Synergy Research Group, said.
"Among the big SaaS vendors are those with the highest overall growth rates Oracle, Microsoft and Google."
In many ways, the enterprise SaaS market is now mature. According to Dinsdale, however, the expenses on SaaS remain relatively small compared to the preliminary software, which means that growth has remained strong for many years.
As a result, Dinsdale predicts that the SaaS market will double in size over the next three years, with strong growth across all segments and across geographic regions.
"IaaS and PaaS markets tend to get more attention and grow faster, but the SaaS market is considerably larger and will stay so happy for many years," Dinsdale explained.
"Traditional enterprise software providers such as Microsoft, SAP, Oracle and IBM still have a large base of on-premise software customers and they are now pushing everyone to aggressively transform these customers into a SaaS-based consumer model.
"At the same time, born-in-the-cloud software providers like Workday, Zendesk and Service Now are burning fire under the market and help drive enterprise expenses on SaaS."
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