SaaS market vendor performance in Q2 2018

Microsoft,, Adobe, Oracle and SAP are the top five enterprise SaaS market vendors in Q2 2018 in terms of revenue share, Synergy Research Group said.
SaaS vendor market share Q2 2018Microsoft, which has SaaS market share of over 17 percent, is the leading SaaS vendor by some distance. Microsoft edged main rival Salesforce nine quarters’ ago.

Microsoft’s annual revenue growth in SaaS segment is running at 45 percent thanks primarily to its leadership in the high-growth collaboration segment.

Salesforce remains the dominant player in CRM, but this segment is relatively low growth compared to other SaaS segments.

Oracle achieved the highest growth rate in SaaS market as compared with rivals Adobe and SAP. The top five SaaS vendors now account for just over half of the market.

The next ten vendors – including Cisco, Google, IBM, ServiceNow, WorkDay, among others, account for another 26 percent of the global SaaS market.

Among these ten, the vendors with the highest growth rates are ServiceNow, Google, ADP and Workday.

The report said the enterprise SaaS market is generating $20 billion in quarterly revenues for software vendors, a number that is growing by 32 percent per year.

SaaS still accounts for less than 15 percent of total enterprise software spending and therefore remains small compared to on-premise software.

SaaS growth rate isn’t as high as IaaS and PaaS. The SaaS market is substantially bigger and it will remain so for the foreseeable future. Synergy forecasts strong growth across all SaaS segments and all geographic regions.

“There is a battle for SaaS playing out, with traditional enterprise software vendors slugging it out with cloud vendors like Workday, Zendesk, ServiceNow and Dropbox,” said John Dinsdale, a chief analyst at Synergy Research Group.

Traditional players such as Microsoft, SAP, Oracle and IBM have a huge base of on-premise software customers that they can convert to a SaaS-based consumption model.

Cisco and Google are making inroads into the global SaaS market, via Cisco’s collaboration apps and software vendor acquisitions and Google’s G Suite.

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