Microsoft and Oracle have long dominated the enterprise app market. However, a changing IT environment due to the SMAC1 revolution paved the way for players like Salesforce and threatened Microsoft’s dominance.
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Apart from Amazon, Oracle cannot afford to ignore Microsoft (MSFT). Microsoft is a dominant player in the cloud space and in the enterprise software sales space, an area in which Oracle also functions. If Oracle focuses too much on Amazon, it risks allowing Microsoft to lock it out of enterprise accounts.
In its recently released report, Synergy Research Group noted that fiscal 4Q16 marked the third straight quarter in which Microsoft emerged as the leader in the overall enterprise SaaS market.
Microsoft dominates the collaboration segment, which enabled it to achieve a leadership position in SaaS. Collaboration is the largest segment in the SaaS space and, after ERP, grew the most in the SaaS space.
Although Salesforce (CRM) lost its dominance in the SaaS space to Microsoft, it continues to be a leader in the CRM space.