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SaaS Cloud Computing: Microsoft Takes Lead Among SaaS Vendors

By Dick Weisinger

The SaaS market is growing at a rate of 33 percent and took in more than $11 billion in sales in the second quarter of 2016, according to a study performed by the Synergy Research Group.  The study found that Microsoft overtook Salesforce as the overall SaaS leading vendor.

Almost all businesses have already begun using some type of SaaS, according to a Northbridge and Wikibon survey.  One in seven companies are using some sort of commercial for-fee SaaS service.  Many more companies are using free public SaaS services like email, YouTube, Facebook, Twitter, LinkedIn and others.

Jeremy Duke, Synergy Research Group chief analyst and founder, said that “we tagged 2015 as the year when cloud became mainstream, and I would say 2016 is the year cloud started to dominate many IT market segments. Major barriers to cloud adoption are now almost a thing of the past, especially on the public cloud side. Cloud technologies are now generating massive revenues for technology suppliers and cloud service providers, yet there are still many years of strong growth ahead.”

John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group, said that “there are a variety of factors driving the SaaS market which will guarantee substantial growth for many years to come. 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.”

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