The latest Q4 2016 data from Synergy Research Group shows that the global enterprise software-as-a-service (SaaS) market grew 32% year on year to reach almost $13 billion in quarterly revenues, with ERP and collaboration being the highest growth segments. For the third successive quarter Microsoft is the clear leader in overall enterprise SaaS, having overtaken long-time market leader Salesforce since Q2 2016, driven largely by the growth of Office 365.
However, Microsoft is not the highest-growth SaaS vendor. That accolade goes to Oracle and Google. Google’s big push for its G Suite initiative has now made it the #3 player for collaboration apps in the cloud.
Meanwhile, Synergy forecasts strong growth in the SaaS market for many years to come – more than doubling in size over the next three years, with strong growth across all segments and all geographic regions – making this space a high-stakes game. Other leading SaaS providers include SAP, Oracle, Adobe, ADP, IBM, Workday, Intuit, Cisco and Google.
“There are a variety of factors driving the SaaS market which will guarantee substantial growth for many years to come,” said John Dinsdale, Chief Analyst and Research Director at Synergy Research Group. “Traditional enterprise software vendors like SAP, Oracle and IBM are all pushing to convert their huge base on 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.”
At last week’s Next 2017, the Google Cloud event, the company announced several products and services, including collaboration apps such as Hangouts Meet and Hangouts Chat. Hangouts Meet is a new video meeting experience designed to make meetings frictionless. Up to 30 people can join a meeting within seconds, no downloads or browser plugins required. Hangouts Chat is a new way to communicate in Hangouts with dedicated, permanent rooms that help connect cross-functional enterprise teams.
Several customers – such as Disney Interactive, HSBC, eBay, AirBnB, Airbus, Colgate-Palmolive, Home Depot, Planet, Cantemo, realtor.com and USAA – shared their experience in migrating, collaborating, applying IoT analytics, AI and machine learning in the cloud.
“While businesses with a mobile strategy are commonplace today, that doesn’t mean the mobile transformation is over,” said Rajeb Sheth, director of product management at Google.
Here are some highlights showing how enterprises are using Google Cloud, Chrome and Android to reimagine the way they engage customers and equip employees to work more productively in the office and in the field.