Google recorded the highest growth in SaaS
Earlier in this series, we discussed Microsoft’s (MSFT) leadership in the SaaS space. Synergy Research Group’s recent estimates show that the enterprise SaaS market grew 32% on a YoY (year-over-year) basis to reach almost $13 billion in quarterly revenues.
Within the SaaS space, ERP and collaboration grew the most. Among the leading SaaS players—including Microsoft (MSFT), Salesforce (CRM), and SAP (SAP)—Oracle (ORCL) and Google (GOOG) reported the highest growth. The chart below shows that 50% of G Suite organizations and 34% of Office 365 organizations are expected to run 100% of their IT functions in the cloud by 2020.
Google’s G Suite collaborative apps helped boost growth
Collaboration is the largest segment of the SaaS space. In Google’s case, G Suite collaborative apps propelled its growth story. It’s likely that in Oracle’s case, its dominance in ERP benefited from the acquisition of NetSuite, leading it to register the highest growth in the SaaS space in the last quarter of 2016.
Google’s record growth in SaaS space suggests that its rapid growth could pose a threat to Microsoft’s dominance in the collaboration sector.
Microsoft chose to integrate collaboration apps into its productivity suites to make them more appealing to organizations that are content with the siloed approach.
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