Various SaaS-based human capital management (HCM) solutions are being increasingly used by organizations for a balanced portfolio of target talent-management strategies. All these factors are expected to help the global SaaS market expand at a CAGR of 27.9% during the period between 2015 and 2022. The overall market was worth US$23.88 bn in 2014 and is projected to reach a valuation of US$164.29 bn by 2022. However, the global SaaS market might be hampered by factors such as lack of integration, low interoperability, and data security and privacy.
Key Vendors Investing Heavily in SaaS Technology and Acquisition Deals
Some of the key players in the global SaaS market are SAP SE, Salesforce.com Inc., Workday Inc., Oracle Corporation, Fujitsu Ltd., Symantec Corporation, Blackboard Inc., Automatic Data Processing Inc., Microsoft Corporation, Google Inc., Amazon Web Services Inc., and IBM Corporation. SaaS solutions offer a highly cloud-competitive platform to companies by letting them access various software applications through web browsers thus saving installation, deployment, and maintenance costs.
It has been observed that a large number of technology vendors are adapting to SaaS quickly even though it is still early days in terms of market adoption. Microsoft has been one of the quick adapters to SaaS technology apart from Oracle and IBM. All these rival companies are focusing on increasing their SaaS revenue. Salesforce.com is the leading vendor in the global SaaS market. In an attempt to stay ahead of its rivals in the market, Microsoft has made heavy investments in introducing many of the productivity features available in the Microsoft Office and Outlook in its SaaS version of the software.
Oracle Makes Two Back-to-back Acquisitions of SaaS Software Providers
Oracle Corporation is on an acquisition spree to boost its position in the global SaaS market. In April 2016, the California-based company bought Textura, a construction management and engineering SaaS software provider. Now, Oracle has also acquired Opower, a provider of customer engagement and energy-efficiency cloud services to utilities, through a deal worth US$532 mn. Opower offers cloud solutions to over 100 utilities including the National Grid, Exelon, and Pacific Gas & Electric. This deal is an indication that Oracle is entering the meter-reading-by-cloud business.
With growing adoption of SaaS technology across various sectors, other vendors are also expected to introduce innovative features on the SaaS platform.