Software as a Service (SaaS) is predicted to amount to $22 billion in 2015 with Compounded Annual Growth rate (GAGR) of 19.5 percent through 2016. Packaged software is not withering in any sense of a meaning, but let us take a look at SaaS for now.
The highest growth in SaaS is predicted to have Microsoft Office suite (49.1 percent). Customer Relationship Management (CRM) is the largest global market achieving some $5 billion in 2012 and projected to reach $9 billion in 2016 (16.3 percent CAGR).
How big is SaaS in comparison to packaged software? Well it’s small in comparison, but growth is inevitable. Packaged software is projected to bring 430 billion by 2015, while SaaS is expected to earn $22 billion the same year.
Top SaaS companies are Saleforce, which is also the founder of the SaaS industry. Leading with customer relationship management, customer service and application development software as well as recently acquired employee performance management application work.com. Saleforce did $2.27 billion last year with CAGR of 37 percent.
SAP is the second biggest player with revenue of $1.14 billion in 2012 with human capital management SuccessFactors, Ariba cloud-based network and enterprise resource planning called Business ByDesign ERP. Oracle, taking number 3 in global SaaS market with revenue of about a billion, offering their Fusion Applications in Software as a Service model.
Microsoft, being 4th biggest player offers Office 365 as Saas as well as enterprise resource planning (ERP), and customer relationship management (CRM). AMong other big players in SaaS let’s mention Workday, which recently filed initial public offering (IPO) with the U.S. Securities and Exchange Commission. Intuit is known for QuickBooks Online SaaS. Zuora offers billing, e-commerce and finance custom services via SaaS. Other well known SaaS players are Pardot, NetSuite, and Marketo.
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