In 2021, Microsoft was the largest software as a service (SaaS) vendor worldwide with a market share of 11 percent. Other key players in the market include Salesforce, SAP, and Google. SaaS is a cloud delivery model in which software is centrally hosted and delivered on a subscription basis.
SaaS benefits
Among the benefits of SaaS are accessibility, reliability, as well as cost-effectiveness. Further, the SaaS model enables organizations to run applications without spending too much time on maintenance processes. This functionality comes at a time when there is a great demand for solutions that accelerate the development of modern applications. The widespread usage of the technology led to more user-friendly and affordable SaaS solutions which help organizations realize their business goals.
SaaS market
As a result of the growth in demand for SaaS, the segment takes up the largest share of the public cloud market, with revenues of around 120 billion U.S. dollars in 2020. In fact, many organizations are focusing on making SaaS a part of their operational expenditures to avoid the capital expenses of legacy systems. Notably, the market is becoming increasingly competitive, with many companies focusing on very specific products, such as SaaS customer relationship management (CRM) solutions.
