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Microsoft leads enterprise SaaS market, Salesforce follows

(Image credit: Image Credit: Wright Studio / Shutterstock)

Enterprise SaaS market has seen growth of almost a third (31 per cent) compared to last year. 

That's according to the latest research from Synergy Research Group.

Its Q2 data says the market almost hit $15 billion in quarterly revenues. The highest growing segment was “collaboration”.

Looking at the leaders in the market, Microsoft seems to be at the forefront, after overtaking Salesforce last year. Synergy Research Group says it was on track for further growth even before it decided to acquire LinkedIn, and that the acquisition only gave it a ‘further boost’. After Microsoft and Salesforce, follow Adobe, Oracle and SAP, ADP, IBM, Workday, Intuit, Cisco, Google and ServiceNow.

The report says the market is still very fragmented, so there is more than one leader, depending on the different market segments.

Oracle, Microsoft and Google are seeing highest overall growth rates.  

“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.”

Image Credit: Wright Studio / Shutterstock