SaaS Market Overview 2015

For all you data people, here’s an overview of the SaaS Market for 2015  Software-as-a-Service (SaaS) is becoming a larger and more material part of the $267B global...

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For all you data people, here’s an overview of the SaaS Market for 2015 

Software-as-a-Service (SaaS) is becoming a larger and more material part of the $267B global enterprise software market

  • SaaS and cloud-based business application services revenue will grow from $13.5B in 2011 to$32.8B in 2016, at a CAGR of 19.5%
  • Forecast represents a shift in total SaaS revenue from just over 10% of the total enterprise software market in 2010, to just over 16% of these combined markets in 2015
  • CRM and Content Communication & Collaboration are the largest segments with 31% & 26% share of the total SaaS market respectively; Office Suites and Digital Content Creation are the fastest growing segments with CAGR of 51% and 41% respectively
  • Intensity of competition is mounting downward pricing pressures on the SaaS vendors – e.g. Cloud prices continue to drop at a rapid rate with 26 price reductions in 2013, up from 22 in 2012; Google announced a new program, which will help eligible early-stage startups take advantage of the cloud and get resources to quickly launch and scale their idea by receiving $100,000 in Cloud Platform credit, 24/7 support, and access to Google technical solutions team
  • Increasing number of corporations are using multiple SaaS vendors to fulfil various business needs – e.g. Kaiser Permanente uses SalesForce for CRM, BMCRemedy for IT service management and ScheduleAnywhere SaaS for employee scheduling
  • Professional services firms are entering the SaaS arena with service offerings including – vendor selection due diligence, business process redesign and application integration – e.g. Accenture offers end-to-end consulting services from SaaS migration strategy, process redesign, implementation, change management to on-going support; Astadia focuses exclusively on cloud based consulting
  • Social media are being increasingly integrated with SaaS solutions – e.g. MuleSoft and Snaplogic are leading players in this space
  • SaaS projects are becoming bigger, with deals frequently appearing in the range of tens of thousands of users – e.g. GE’s implementation of Aravo, a Supplier Lifecycle
  • Management solution, became the largest SaaS implementation of all time, with over 100,000 GE procurement users able to access the same information on over 500,000 global suppliers at anytime, anywhere in the world
  • SaaS M&A market has witnessed explosive growth over the last 5 years; The number of SaaS M&A transactions is projected grow from 184 in 2009 to 621 by the end of 20144
  1. Includes: Content, communications and collaboration, CRM, Digital content creation, ERP,Office suites, Project and portfolio management & SCM
  1. Gartner Forecast Analysis: Enterprise Application Software, Worldwide, 2011-2016, 4Q12 Update, Jan 2013
  2. IDC: Worldwide SaaS and Cloud Software 2012–2017 Forecast, Dec 2013
  3. AGC Partners SaaS Report October 2014
*Data Excerpt taken from a SaaS Market Overview report from Centaur Partners. Full report can be accessed here http://www.centaurpartners.com/pdfs/CP_SaaS_Market_Overview.pdf 
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