Microsoft has clung onto its lead of a software-as-a-service market set to double in size over the next three years, according to analyst Synergy Research.
The SaaS market grew by 32 per cent year on year to reach almost $13bn in the final quarter of 2016, with ERP and collaboration experiencing the highest growth rates (see bottom), Synergy said.
Having edged out Salesforce as the largest player overall mid-way through last year, Microsoft remained the clear leader of the pack in Q4, the analyst claimed.
Synergy pinpointed Oracle and Google as among the quarter's biggest gainers, the latter thanks to a big push for its G Suite collaborative apps.
Despite enjoying a lower growth rate than either Infrastructure-as-a-Service or Platform-as-a-Service by dint of its relative maturity, SaaS sales will double over the next three years, Synergy predicted.
"There are a variety of factors driving the SaaS market which will guarantee substantial growth for many years to come," said John Dinsdale, a chief analyst at Synergy.
"Traditional enterprise software vendors like SAP, Oracle and IBM are all pushing to convert their huge base of on-premise software customers to a SaaS subscription relationship. Meanwhile relatively new cloud-based vendors like Workday and Zendesk are aggressively targeting the enterprise market and industry giants Microsoft and Google are on a charge to grow their subscriber bases, especially in the collaboration market."
Learn why customers across industries are embracing a hybrid cloud strategy with VMware Cloud on AWS.
Red Hat’s Colin Fisher on the future for cloud service providers
Partner Content: Exclusive CRN Research Reveals How Partnering With Open Source Can Boost Partner Profit Margins
Red Hat partnered with CRN to identify key cloud opportunities for channel players.
It is with great pleasure that we can announce that the CRN 2021 Sales and Marketing Awards are now open for entry
Have a look at all the categories available to enter in this year's Sales and Marketing Awards
Microsoft Dynamics specialist adds 50 new heads to staff and opened a new centre in India last year
Please do have a read of these tips - they really are there to make the entry process a lot easier!