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Step aside Salesforce, Microsoft is king of SaaS now

Microsoft is now the overall leader in the software-as-a-service (SaaS) market, beating Salesforce by a tiny margin. However, not everything is as straightforward as it seems. 

eWeek is reporting that Microsoft, even though late to the party as usual, now holds 15 per cent of the SaaS market share, while Salesforce, the leader so far, holds 14 per cent. 

In the first quarter of 2016, both were tied at 14 per cent each. The funny thing is, Salesforce doesn't even rank in all the different aspects of SaaS. It holds the dominant position in customer relationship management (CRM), true. 

But Microsoft ranks number one in collaboration tools, two in CRM and three in enterprise SaaS.  What's also interesting to notice is that the global SaaS market has also grown, hitting $11 billion in quarterly revenue.  

Earlier this month, Gartner has named Microsoft Azure 'top cloud service' – for the third year in a row.  

“We are, of course, thrilled and honoured that Microsoft Azure named a Gartner Magic Quadrant leader for the third year in a row,” said Necip Ozyucel, Cloud and Enterprise Business Solutions Lead, Microsoft Gulf, back then. 

At the same time, Oracle is elbowing its way into the mix, as well. According to multiple media reports, the company is being perceived as the fastest growing SaaS provider.  

"In SaaS, a big battle is playing out between the traditional broad-based software vendors and companies that are focused on a specific application area or industry sector, many of which are entirely cloud-based," said Chief Analyst and Research Director John Dinsdale in a media advisory.

Image Credit: Chaiyapop Bhumiwat / Shutterstock

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.