Spending in the fast-growing enterprise software-as-a-service (SaaS) market will hit as US$100 billion ($A142 billion) annual run rate this quarter, according to new research.
The enterprise SaaS market generated over $23 billion of revenue for software vendors in the first quarter of the calendar year, the new data from Synergy Research Group shows.
The market is growing at nearly 30 per cent a year, and tech giant Microsoft is king of the kill — it has a worldwide market share of 17 per cent, thanks in no small part to its pro-collaboration mindset.
Global SaaS company LiveTiles (ASX:LVT) has been working closely with Microsoft on intelligent workplace products for several years and back in April reported a tripling of its annualised recurring revenue. In January, it hired former Microsoft executive David Vander as global growth director.
Microsoft’s annual growth in the enterprise SaaS space sits at a healthy 34 per cent, comfortably outperforming other vendors such as Salesforce, Adobe and SAP.
“While in many ways the enterprise SaaS market is now mature, it still accounts for barely more than 20 per cent of total enterprise software spending and therefore remains small compared to on-premise software, meaning that SaaS growth will remain buoyant for many years to come,” the report says.
“The SaaS market is substantial and will remain so until 2023. Synergy forecasts strong growth across all SaaS segments and all geographic regions.”
This content is produced by Star Investing in commercial partnership with LiveTiles. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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