A recent report reinstates Microsoft’s dominating presence in this market. According to Synergy Research Group, the Satya Nadella-led firm has the highest market share of 17% in the enterprise software-as-a-service (SaaS) market. Microsoft is followed by Salesforce (NYSE: CRM), Adobe (NASDAQ: ADBE), SAP (NYSE: SAP) and Oracle (NYSE: ORCL).
These five companies together held more than half of the enterprise SaaS market share, according to the report.
Cisco (NASDAQ: CSCO), Alphabet (NASDAQ: GOOGL), IBM (NYSE: IBM), ServiceNow (NYSE: NOW) and Workday (NASDAQ: WDAY) make up the bottom five of the top 10. The top 10 vendors account for over three-fourths of the market.
Microsoft excels when it comes to annual growth rate also. The company boasts of 34% growth rate, trailing only SAP, which has reported a commendable 39% growth. All the others in the top five have annual growth in the twenties.
The report also adds that the enterprise SaaS market has abundant growth opportunities as it currently accounts for just about 20% of total enterprise software spending. It adds that the market is going to witness a lot of action, including new entrants and consolidations.
Chief
Analyst at Synergy Research Group John Dinsdale said, “There will be
consolidation, with the impending Salesforce acquisition of Tableau Software
being a prime example, but there will remain many opportunities for new market
entrants to make an impact.”
In spite of all that, Microsoft holds a strong ground, thanks to its huge base of on-premise software customers. All it needs to do is move these clients into the SaaS model.
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