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What Helped Oracle Report the Highest Growth in the SaaS Space?

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Nov. 19 2019, Updated 4:57 p.m. ET

Oracle reported the highest growth among top ten SaaS players

In 2Q16, Microsoft (MSFT) emerged as the leader in the overall SaaS (software-as-a-service) space, while Salesforce (CRM) continued to be the leader in the CRM (consumer relationship management) space. However, despite not being a top four provider in the cloud space, Oracle recorded the maximum growth.
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Oracle’s dominance in the ERP space

ERP (enterprise resource planning) grew the most in the SaaS space in calendar 2Q16. The 49% growth in ERP space far exceeded the 33% overall growth in the SaaS space, and this helps explain why Oracle (ORCL) did so well.

SaaS revenues are usually more predictable than licensing deals, which is why they are increasingly preferred by software companies. This preference explains why traditional software companies like Microsoft (MSFT), Oracle, and IBM (IBM) are making a transition from license sales to subscriptions.

Oracle has now entered the Leader category in Gartner’s Magic Quadrant for CPM solutions. Gartner’s postmodern ERP definition refers to CPM solutions as a “technology strategy that offers diverse options for automating and linking administrative and operational business capabilities with levels of integration that balance the benefits of vendor-delivered integration against customers’ requirements for flexibility and agility.”

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