Microsoft Dethrones Salesforce As Top SaaS Provider

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The worldwide software-as-service (SaaS) market grew by 33 per cent in the second quarter of 2016 and Microsoft's SaaS business experienced significant growth as well. So much so, it has overtaken Salesforce as the number one enterprise SaaS provider, according to Synergy Research Group. Read on to find out more.

While Salesforce has a huge presence in SaaS, its offering in this space is limited. Its bread and butter product is its customer relationship management (CRM) solution and the company is still top dog in that particular category. But Microsoft has a more flesh out software portfolio.

The enterprise SaaS market is set to triple in size over the next five years. The consumer SaaS market is only one third of the size of its enterprise brethren. Currently, Microsoft is dominating both of those markets, thanks to its Office 365 offering. It has more than doubled its revenue on a rolling annualised basis, according to Synergy Research Group.

"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," Synergy Research Group research and chief analyst John Dinsdale said. "It might be tempting to assume that the latter camp are leading the charge, but in fact the traditional software vendors are growing their SaaS revenues more rapidly, helped by their huge base of on-premise software customers that can be aggressively targeted for conversion to a SaaS consumption model."

Other leading SaaS providers include SAP, Oracle, Adobe, ADP, IBM, Workday, Intuit and Cisco.


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