The corporate SaaS market continues to grow at an extraordinary rate, and according to a new report from Synergy Research, corporate SaaS revenue has surpassed the €100 billion realization rate this quarter. Microsoft and Salesforce led the charge in first and second place, respectively, followed by Adobe, SAP and Oracle in the top five. In its financial results for the second quarter, Microsoft posted revenue of €10,1 billion in productivity and business processes, up 13% from the previous quarter. This division includes Office 365, the Dynamics line and LinkedIn, and the increase in its business volume has allowed the software giant to occupy the first place with 17% of the global market. Salesforce was in second place with 12% and in its latest earnings report announced €3,74 billion in revenue. The company's cloud service generated €1.02 billion in revenue and marked the first time its customer relationship management platform surpassed €1.000 billion. Adobe is in third place with a 10% market share, after reporting €2.74 billion in revenue in its latest report. The company's digital media division, which includes Creative Cloud and Document Cloud, generated the bulk of its revenue at $1.800 billion.
SaaS Marketplace
Even though it took 20 years for the SaaS market to reach €100 billion, it's still an important step that shows how the commercial software market is doing. I have moved from an on-premises model to the cloud in the last few years. According to Synergy Research, the SaaS business market still has a long way to go, as SaaS revenue still only accounts for 20 percent of the global business software market. Synergy Research Group Chief Analyst John Dinsdale provided additional insight into the report's findings as well as his predictions for the future of the SaaS business, stating: "The SaaS vendor landscape essentially falls into three camps. – Traditional enterprise software vendors, relatively new cloud players, and large IT vendors looking to expand further into software markets.In the first case, you'll find companies like Microsoft, SAP, Oracle, and IBM that have a large on-premises software customer base that they can convert to a SaaS-based consumption model. Born-in-the-cloud providers include Workday, Zendesk, ServiceNow, Atlassian, and Splunk, which tend to have much higher growth rates. Meanwhile , Google, and Cisco have an impact on the SaaS market, through Google's G Suite, Cisco collaboration apps, and acquisitions of various software vendors. There will be consolidation with the upcoming acquisition of Tableau Software by Salesforce, but there will be plenty of opportunities for new entrants to make an impact. via TechCrunch