Global technology giant Microsoft rules the overall enterprise software-as-a-service (SaaS) market with the highest revenues, said a new Q2 data from Synergy Research Group. US-based firm which has already overtaken long time market leader Saleforce in SaaS, got a boost with the acquisition of LinkedIn which gave its SaaS business a further push, said report.
According to New Q2 data from Synergy Research Group, 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.
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, said research firm.
According to Synergy Research Group, the SaaS market is highly fragmented with different vendors leading different market segments. “Among the major SaaS vendors those with the highest overall growth rates are Oracle, Microsoft and Google,” report said.
The report suggest that the enterprise SaaS market seems to be matured but 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, said Synergy Research Group.