Microsoft Grows Aggressively in SaaS Market 2015

The latest research from the synergy research group finds that the Microsoft is growing in the Software as a Service (SaaS) Market, but Salesforce still is the leader of this market.

SaaS Market 2015GreatResponder.com  Latest data from Synergy Research Group shows that Microsoft is now challenging the position of leader in the enterprise Software as a Service market. In the year 2015 Microsoft increased its market share by nearly 3 percentage points, but it was still a small way at the back of long time leader Salesforce. Though, Microsoft continues to grow its Software as a Service revenue much more speedily.

According to the research, Microsoft established the 2nd top level of increase within the division at 70 % year-on-year, only at the back of SAP who were at 73 %, but still only sits 2nd in the market share rankings. Salesforce is one of only four in the top ten in the division who proved less than 50% growth, however, still accounts for just under 15% of the global market share for Software as a Service. Adobe, IBM, Oracle, Google, ADP, Intuit and Workday complete the top ten.

“In many ways SaaS is a more mature market than other cloud markets like IaaS or PaaS,” said John Dinsdale, Chief Analyst at Synergy Research Group. “However, even for SaaS it is still early days in terms of market adoption. It is notable that the big three traditional software vendors – Microsoft, Oracle and IBM – are all now growing their SaaS revenues faster than the overall market and yet SaaS accounts for less than 8% of their total software revenues.”

The Software as a Service has been indicating strong growth over the past few years, as Synergy calculated approximately this market division has grown by 40% over the last 12 months, and it is expected to be triple over the next five years. The expected growth trends are also supported by a Research by Cisco. Last year the group forecasted that by 2019 59% of total cloud workloads will be SaaS, as evaluate to 45% in 2014.

The research also shows Microsoft as making constructive steps in the customer SaaS market segment beside its enterprise business. Whereas the user segment is approximately a third of the size of the enterprise market, the company’s growth in this division exceeding rivals who at present, have a more secure position in the market.

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