Vast global growth

for SaaS market

MARKETS

Recent research from the Synergy Research Group (SRG) shows that the enterprise Software as a Service (SaaS) market is currently generating more than $20 billion in quarterly revenues. That’s a 32% per year increase.

Solid growth is expected, as SaaS currently accounts for less than 15% of total enterprise software spending – significantly less than on-premise software. While the growth rate for SaaS isn’t as high as IaaS (Infrastructure as a Service) and PaaS, (Platform as a Service), the SaaS market is substantially bigger. Synergy expects this to remain the case in the future, and forecasts strong growth across all SaaS segments and all geographic regions.

"There is a fascinating battle for SaaS playing out,” explains John Dinsdale, a Chief Analyst at Synergy Research Group. “Traditional enterprise software vendors are slugging it out with born-in-the-cloud vendors such as Workday, Zendesk, ServiceNow and Dropbox. The latter group are helping to rapidly transform the market, but the more traditional players like Microsoft, SAP, Oracle and IBM still have a huge base of on-premise software customers that they can convert to a SaaS-based consumption model. Meanwhile Cisco and Google too are making ever-bigger inroads into the SaaS market, via Cisco’s collaboration apps and software vendor acquisitions and Google’s G Suite.”

The Software as a Service Market:

Technologies and Global Markets Through 2022 report from BCC Research claims the global SaaS market will be worth $94.9 Billion by 2022. Selected highlights from their research:

The market size of SaaS business applications, among other large enterprises in North America, is expected to grow at a CAGR of 13.1%.
In the United States, more than 80% of SMBs are expected to implement public cloud-based SaaS business applications.
The global SaaS market for large enterprises is forecasted to reach $52.6 billion by 2022.

Statista figures indicate the cloud Software as a Service (SaaS) should be worth around 92.75 billion U.S. dollars worldwide by 2022.