Microsoft displaces Salesforce to lead in SaaS market

enterprise SaaS market vendors in Q4 2016US software major Microsoft is leading the global SaaS market in Q4 2016 — overtaking Salesforce, while Oracle and Google achieved better growth.

The enterprise SaaS market grew 32 percent to almost $13 billion in Q4 2016. ERP and collaboration are the highest growth segments of SaaS market.

Microsoft is the leader in enterprise SaaS. Microsoft has displaced Salesforce, the long-time market leader in SaaS segment.

Other leading SaaS providers include SAP, Oracle, Adobe, ADP, IBM, Workday, Intuit, Cisco and Google. Oracle and Google achieved the highest growth rate. Technology giant Google is gaining market share thanks to a big push for its G Suite collaborative apps.

Synergy Research Group said the enterprise SaaS market is mature compared to other cloud markets like IaaS and PaaS and consequently has a lower growth rate. The SaaS market will more than double in size over the next three years, with strong growth across all segments and all geographic regions.

Traditional enterprise software vendors like SAP, Oracle and IBM are all pushing to convert their huge base on on-premise software customers to a SaaS subscription relationship.

Cloud-based technology vendors like Workday and Zendesk are targeting the enterprise market and industry giants Microsoft and Google are on a charge to grow their subscriber bases, especially in the collaboration market, said John Dinsdale, chief analyst and research director at Synergy Research Group.

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