DIGITAL & TRENDS

Software as a Service (SaaS)

 Table of Contents

01 Overview IBM global revenue 2010-2023, by segment 21

IT services global spending forecast 2008-2024 03

04 Consumption
Public cloud services market size 2017-2024 04
Global public cloud application services (SaaS) market size 2015-2025 05 Enterprise public cloud platform and infrastructure service usage worldwide 2017-2024 23

Public cloud services growth worldwide 2022-2024, by segment 06 Worldwide enterprise public cloud annual spend 2024 24

Global public IT cloud services revenue 2016-2022, by segment 07 Worldwide enterprise cloud strategy 2021-2024 25
Top SaaS industries worldwide 2024, by customers 26

02 Segments Top SaaS industries worldwide 2024, by funding 27

Spending on cloud and data centers 2009-2023, by segment 09

As-a-service market annual contract value worldwide 2015-2024, by quarter 10
Global software as a service (SaaS) countries 2024, by number of companies 11
Global leading B2B software as a service CRM companies 2023, by total revenue 12
Global IT security spending growth 2024, by segment 13

03 Companies
Global cloud software (SaaS) revenue share 2015-2022, by vendor 15
Google Cloud revenue worldwide 2017-2023 16
Revenue of Microsoft broken down by segment 2012-2023 17
Revenue of Salesforce.com broken down 2009-2024, by segment 18
Oracle: revenue by segment 2008-2024 19
SAP's global revenue 2009-2023, by segment 20

1
CHAPTER 01

Overview
 Information technology (IT) services spending forecast worldwide from
2008 to 2024 (in billion U.S. dollars)
IT services global spending forecast 2008-2024

1,800

1,600

1,400
Spending in billion U.S. dollars

1,200

1,000

800

600

400

200

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* 2024*

3 Description: In 2023, spending on IT services is projected to amount to around 1.42 trillion U.S. dollars worldwide. Read more
Note(s): Worldwide; 2008 to 2022; *Forecast Read more
Source(s): Gartner
 Public cloud services end-user spending worldwide from 2017 to 2024 (in
billion U.S. dollars)
Public cloud services market size 2017-2024

900
824.76
800

700 675.43
Market in billion U.S. dollars

600 561.1

500 478.32
412.63
400
314
300
243
197
200
145

100

0
2017 2018 2019 2020 2021 2022 2023 2024* 2025*

4 Description: The worldwide public cloud computing market continues to grow and is expected to reach an estimated 675 billion U.S. dollars in 2024. This encompasses business processes, platform, infrastructure, software, management, security, and advertising
services delivered by public cloud services. A public cloud is a cloud deployment model that offers computing services over the internet. The physical hardware of this cloud model is shared by multiple companies. The services offered to customers [...] Read more
Note(s): Worldwide; 2017 to 2024; * Forecast The cloud advertising segment was removed from Gartner's public cloud services forecast segments starting from 2017. Read more
Source(s): Gartner
 Public cloud application services/software as a service (SaaS) end-user
spending worldwide from 2015 to 2025 (in billion U.S. dollars)
Global public cloud application services (SaaS) market size 2015-2025

350

295.08
300

247.2
Market in billion U.S. dollars

250

206
200
167.34
146.33
150
120.7
102.1
100 85.7

58.8
48.2
50 31.4

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2025*

5 Description: In 2023, the software as a service (SaaS) market is estimated to be worth approximately 197 billion U.S. dollars and estimated to reach 247 billion U.S. dollars by 2024. SaaS applications are run in the cloud and usually accessible through desktops and
mobile applications, as well as through a web interface. Read more
Note(s): Worldwide; 2015 to 2024; * Forecast. Read more
Source(s): Gartner
 Public cloud services annual growth rate worldwide in 2022 to 2024, by
segment
Public cloud services growth worldwide 2022-2024, by segment

2022 2023 2024

35%
30.64%
29.82%
30%
26.09% 26.59% 26.61%

25% 23.25%
22.25%
Annual growth rate

21.45%
20.38% 20.69% 20.44%
20% 18.89%
16.06% 16.82%
15% 13.54%

9.92%
10% 8.15% 8.35%

5%

0%
Cloud application Cloud application services Cloud business process Desktop as a Service Cloud system Total market
infrastructure services (SaaS) services (BPaaS) (DaaS) infrastructure services
(PaaS) (IaaS)

6 Description: The cloud system infrastructure services (IaaS) segment is forecast to grow by 32.7 percent in 2024 compared to 2022. The public cloud services market as a whole is expected to grow by 20 percent, with only cloud business process services (BPaaS)
experiencing single digit annual growth rates. Read more
Note(s): Worldwide; 2022 to 2023
Source(s): Gartner; Statista
 Public IT cloud services market revenue worldwide from 2016 to 2022, by
segment (in billion U.S. dollars)
Global public IT cloud services revenue 2016-2022, by segment

Infrastructure as a service Platform as a service Software as a service

800

700
Spending in billion U.S. dollars

600

500
412.5
400 347.5

300 282.7

200 197.6
123.3
148.5 95.4
123.9 70.1
100 100.38 47.6
61.11 35.9 115.5 133.4
18.05 25.8 67.2 91.5
11.57
17.8 24.81 35.4 49
0
2016 2017 2018 2019 2020 2021 2022 2023

7 Description: In 2023, the global spending on public IT cloud services amounted to approximately 669 billion U.S. dollars in total. Software as a service (SaaS) spending is the largest segment with revenues of around nearly 413 billion U.S. dollars. This growth is driven by
organizations across the world replacing their legacy business applications with SaaS applications that are more data-driven and a more appropriate fit for modern cloud architectures. Read more
Note(s): Worldwide; 2016 to 2024; *SaaS revenues include both SaaS applications and SaaS Systems Infrastructure Software (SISaaS). 2023 SaaS applications revenue: 298.5bn USD 2023 SISaaS revenue: 114bn USD Read more
Source(s): IDC
CHAPTER 02

Segments
 Enterprise spending on cloud and data centers by segment from 2009 to
2023 (in billion U.S dollars)
Spending on cloud and data centers 2009-2023, by segment

Data Center Hardware & Software Cloud Infrastructure Services

300

250
Spending in billion U.S dollars

200
178

150 129.5
96
270
69
225
100 46.5
14 21 32
6.5 9.5
3.5
1.5
1
50 93 93.3 89 98.05
71.4 77.5 81 81.5 83 82 78.5 81.5
60.7

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

9 Description: In 2023, enterprise spending on cloud infrastructure services amounted to 270 billion U.S. dollars, a growth of 45 billion U.S. dollars compared to the previous year. The growing market for cloud infrastructure services is driven by organizations' demand
for modern networking, storage, and databases solutions. Read more
Note(s): Worldwide; 2009 to 2024
Source(s): Statista estimates; Synergy Research Group
 As-a-service market (IaaS & SaaS) annual contract value (ACV) worldwide
from 2015 to 2024, by quarter (in billion U.S. dollars)*
As-a-service market annual contract value worldwide 2015-2024, by quarter

18

16
14.4 14.7 14.6
14 13.1
ACV in billion U.S. dollars

12
9.9
10
8
8 7.2
6.5
6 5.4

3.8
4 3.2
2.6
2.2
2

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
'15 '15 '15 '15 '16 '16 '16 '16 '17 '17 '17 '17 '18 '18 '18 '18 '19 '19 '19 '19 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22 '22 '22 '23 '23 '23 '23 '24

10 Description: In the most recent quarter of 2024, the annual contract value (ACV) of the global infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) market stood at 14.6 billion U.S. dollars. The pay-as-you-go model offered reduced information technology
(IT) costs for companies and thereby changed the way global enterprises operate. Read more
Note(s): Worldwide; 2015 to 2024; * Only accounts for contracts with ACV ≥ $5M Read more
Source(s): Information Services Group
 Leading software as a service (SaaS) countries worldwide in 2024, by
number of companies
Global software as a service (SaaS) countries 2024, by number of companies

Number of companies
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

United States 9,100

United Kingdom 1,500

Canada 992

Germany 840

lndia 711

France 684

China 443

Australia 408

Brazil 342

Spain 341

Israel 459

Netherlands 393

Singapore 327

Sweden 283

Ireland 268

11 Description: In 2024, there were approximately 9,100 software as a service (SaaS) companies in the United States. Together, they had around 15 billion customers worldwide. The United Kingdom takes the second place with 1,500 companies and 293 million customers
worldwide. SaaS is a software licensing model delivered via the cloud. Read more
Note(s): Worldwide; 2024; SaaS companies; * SaaS data points include customer count, churn, revenue, customer acquisition cost, average contract values, and payback periods. Date of release is the date of accessing the database. Read more
Source(s): The Latka Agency
 Leading B2B software as a service (SaaS) customer relationship management
(CRM) companies worldwide in 2023, by total revenue (in million U.S. dollars)
Global leading B2B software as a service CRM companies 2023, by total revenue

Revenue in million U.S. dollars

0 100 200 300 400 500 600

Zoho 500

Talkdesk 229.5

Odoo S.A. 178

Daugherty Systems Inc. 172.2

Clickfunnels 160

IngageApp 131.1

Infusionsoft 120

Pendo 100

Movableink 100

Demandbase 96

12 Description: As of September 2023, Zoho was the leading software as a service (SaaS) customer relationship management (CRM) and related software company, with over 500 million U.S. dollars in revenue. It was followed by Talkdesk (229.5 million U.S. dollars) and
Odoo (178 million U.S. dollars). Read more
Note(s): Worldwide; 2023; Private B2B CRM and Related Software SaaS companies*; *SaaS data points include customer count, churn, revenue, customer acquisition cost, average contract values, and payback periods. Date of release is date of [...] Read more
Source(s): The Latka Agency
 IT security spending growth rate worldwide in 2024, by segment
Global IT security spending growth 2024, by segment

Annual growth rate

0% 5% 10% 15% 20% 25% 30%

Cloud security 24.7%

Data privacy 24.6%

Infrastructure protection 17.5%

Data security 17.4%

Application security 15.7%

Identity access management 14.8%

Network security equipment 13.9%

Security services 11.3%

Integrated risk management 10.4%

Consumer security software 6.4%

Other information security software 26.4%

13 Description: According to the source, cloud security was expected to grow by nearly 25 percent from 2023 to 2024, making it the fastest growing segment in the IT security market, largely due to the growing demand for cloud solutions as an increasing number of
companies migrate to the cloud. Overall, the source expects the total IT security spending to increase 14.3 percent in 2024 compared to 2023. Read more
Note(s): Worldwide; 2023
Source(s): Gartner
CHAPTER 03

Companies
 Distribution of cloud Software as a Service (SaaS) market revenues
worldwide from 2015 to 2022, by vendor
Global cloud software (SaaS) revenue share 2015-2022, by vendor

Market share

Microsoft Salesforce IBM Oracle Electronic Arts Activision SAP CA Technologies Apple Hewlett Packard Other

0% 20% 40% 60% 80% 100% 120%

2015

2016

Year to June 2018

Year to June 2019

Year to June 2021

2022

15 Description: In 2022, Microsoft took in the greatest portion of software as a service (SaaS) revenue, controlling 22.4 percent of the SaaS market. Other strong players in the market are Salesforce and IBM. Overall, the cloud computing market was valued at 413 billion
U.S. dollars in that same year, with SaaS making up 185 billion U.S. dollars of the total. Read more
Note(s): Worldwide; 2015 to 2022
Source(s): ITCandor
 Global Google Cloud revenues from 2017 to 2023 (in million U.S. dollars)
Google Cloud revenue worldwide 2017-2023

35,000 33,088

30,000
26,280
Revenue in million U.S. dollars

25,000

20,000 19,206

15,000 13,059

10,000 8,918

5,838
5,000 4,056

0
2017 2018 2019 2020 2021 2022 2023

16 Description: In 2023, Google Cloud revenue amounted to 33.08 billion U.S. dollars, accounting for over 10 percent of Google's total revenues. The company's Cloud segment primarily generates revenue through the Google Cloud Platform (GCP), which offers a suite of
cloud computing services running on Google infrastructure. Read more
Note(s): Worldwide; 2017 to 2023
Source(s): Alphabet; Google
 Microsoft's revenue from financial years 2012 to 2023, by segment (in
billion U.S. dollars)
Revenue of Microsoft broken down by segment 2012-2023

Productivity and business processes Intelligent cloud More personal computing

Corporate and Other Commercial Licensing Device and Consumer Licensing
Computing and Gaming Hardware Commercial Other Devices and Consumer Other
Phone Hardware
250
Revenue in billions of U.S. dollars

200

150

100

50

-50
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

17 Description: In its 2023 financial year, Microsoft generated 69 billion U.S. dollars from its productivity and business processes segment and a further 88 billion through its intelligent cloud segment. Thanks in part to the rapid growth in these two areas, 2023 proved to
be the company’s most successful year ever in terms of annual revenue, with the total figure reaching over 211 billion dollars. Read more
Note(s): Worldwide; 2012 to 2023
Source(s): Microsoft
 Salesforce.com's revenue from 2009 to 2024, by segment (in million U.S.
dollars)
Revenue of Salesforce.com broken down 2009-2024, by segment

Subscription and support Professional services and other

40,000

35,000
2,320
Revenue in million U.S. dollars

30,000 2,331

25,000 1,835

20,000 1,276

1,055 32,537
15,000 29,021
869 24,657
10,000 769.47 19,976
635.78 16,043
461.62 12,413
5,000 359.82 9,710.54
246.46 7,756.2
140.31 181.39
3,824.54 5,013.76 6,205.6
92.2 105.99
96.11 1,551.15 2,126.23 2,868.81
0 984.57 1,209.47
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

18 Description: In Salesforce's 2024 financial year, they made over 32 billion U.S. dollars through subscriptions and support and 2.3 billion from professional services and other sources. Both these figures were increases compared to the previous year. Read more
Note(s): Worldwide; 2009 to 2024
Source(s): Salesforce.com
 Oracle's revenue by business segment from FY2008 to FY2024 (in million
U.S. dollars)*
Oracle: revenue by segment 2008-2024

Revenue in million U.S. dollars

Cloud services and license support Cloud license and on-premise license Hardware
Services revenues Software license updates and product support New software licenses
Cloud SaaS Cloud PaaS and IaaS Cloud SaaS and PaaS
Hardware Systems Cloud IaaS Services
Hardware products Hardware support Cloud and on-premise software
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
2008
Fiscal years

2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

19 Description: Oracle’s cloud services and license support division is the company’s most profitable business segment, bringing in over 39 billion U.S. dollars in its 2024 fiscal year. In that year, Oracle brought in annual revenue of close to 52 billion U.S. dollars, its highest
revenue figure to date. Read more
Note(s): Worldwide; 2008 to 2024; * Fiscal year ends May 31 of each year. SaaS, PaaS, and IaaS: Software, Platform, and Infrastructure as a Service. Read more
Source(s): Oracle
 SAP's global revenue from 2009 to 2023, by segment (in million euros)
SAP's global revenue 2009-2023, by segment

Software licenses Software support

Cloud Services
Other services Professional services and other services revenue
Consulting Software and cloud subscriptions
35,000

30,000
4,283
4,350
Revenue in million euros

25,000 4,541 4,110 3,764

4,086
3,911
20,000 3,638 7,013 11,426 13,664
3,579 8,080 8,701
3,769 5,027
2,286 2,993
15,000 2,865 3,245
4,928 696 1,087
4,125
10,000 3,424 2,442 10,093 10,571 10,908 10,982 11,548
2,735 2,341 616 8,738 8,829 11,506 11,412
2,197 573 11,909 11,496
2,074 473
5,000 400
7,194 8,237
5,463 6,370 4,835 4,860 4,872 4,647 4,533
4,516 4,399 3,642 3,248 2,056 1,764
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

20 Description: The revenue of SAP has been steadily growing over the years with cloud being the largest segment raking in a revenue of over 13 billion U.S. dollars in 2023. In the same year, SAP generated about 11.5 billion euros from its software support segment.
Read more
Note(s): Worldwide; 2009 to 2024
Source(s): SAP
 IBM revenue worldwide from 2010 to 2023, by segment (in billion U.S.
dollars)
IBM global revenue 2010-2023, by segment

Software Consulting Infrastructure

Financing Other Global Business Services
Global Technology Services Cognitive Solutions Systems and Technology
Global Financing Systems Technology Services & Cloud Platforms
Cloud & Cognitive Software
120
Revenue in billion U.S. dollars

100

80

60

40

20

0
2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019* 2020 2021 2022 2023

21 Description: In 2023, IBM’s Software segment generated over 26 billion U.S. dollars of the company’s revenue, which for 2023 stood at around 62 billion U.S. dollars. In 2016, IBM first changed its segment reporting to reflect the company’s shift away from being a
hardware, software and services company, and towards becoming a cognitive solutions and cloud platform company. In the fourth quarter of 2021, the company changed its segment reporting again, to align it better with the company's platform [...] Read more
Note(s): Worldwide; 2010 to 2023
Source(s): IBM
CHAPTER 04

Consumption
 Current enterprise public cloud adoption worldwide from 2017 to 2024, by
service
Enterprise public cloud platform and infrastructure service usage worldwide 2017-2024

AWS (Amazon Web Service) Azure Google Cloud Oracle Infrastructure Cloud IBM Public Cloud Alibaba Cloud
90%

80%

70%
Share of respondents

60%

50%

40%

30%

20%

10%

0%
2017 2018 2019 2020 2021 2022 2023 2024

23 Description: According to the latest report, 80 percent of enterprise respondents indicated that they were adopting Microsoft Azure for public cloud usage. AWS, Microsoft Azure, and Google Cloud, also known as hyperscalers, are among the leading cloud computing
platform providers worldwide. Read more
Note(s): Worldwide; 2017 to 2024; 554 (2020) / 637 (2021) / 597 (2022) / 627 (2023) / 753 (2024); Technical professionals across a cross-section of organizations; *Respondents represent enterprises (more than 1,000 employees) Read more
Source(s): Flexera Software
 Enterprise annual spend on public cloud worldwide from 2024, by amount
of spend
Worldwide enterprise public cloud annual spend 2024

18%

16%

14%

12%
Share of respondents

10%

17% 17%
8%
14%
6% 12% 12%
10% 10%
4%

5%
2% 4%

0%
Up to $600k $600k to $1.2m $1.2m to $2.4m $2.4m to $6m $6m to $12m $12m to $24m $24m to $60m more than $60m Did not disclose

24 Description: In late 2024, 17 percent of the enterprise respondents indicated that their organizations spent more than six million and up to 12 million U.S. dollars on public cloud every year. Public cloud spend is remaining strong, as organizations around the world
continuously migrate to the cloud as part of their digital transformation plans. Further, organizations increasingly invest in collaboration, remote working technologies, and infrastructure. Read more
Note(s): Worldwide; 2024; 621 respondents; Technical professionals across a cross-section of organizations
Source(s): Flexera Software
 Enterprise cloud strategy worldwide from 2021 to 2024, by cloud type
Worldwide enterprise cloud strategy 2021-2024

Hybrid cloud Multiple public Multiple private Single public Single private No plans
120%

100% 2% 2% 1%
5%
9% 11% 10%
11% 2% 2%
7% 2%
Share of respondents

80% 13% 14%

60%

40% 84% 80%

72% 73%

20%

0%
2021 2022 2023 2024

25 Description: As of 2024, 73 percent of the enterprise respondents indicated that they have deployed a hybrid cloud in their organization. The migration to hybrid cloud solutions generally happens at the expense of operating single private and public clouds. Read
more
Note(s): Worldwide; 2017 to 2024; 753 respondents; Cloud decision makers and users
Source(s): Flexera Software
 Leading industries for Software as a Service (SaaS) companies worldwide
as of January 2024, by number of costumers (in 1,000s)
Top SaaS industries worldwide 2024, by customers

Number of customers in thousands

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000

Artificial Intelligence software 2,900,000

Analytics software 1,900,000

E-commerce software 1,900,000

Security software 1,900,000

Development software 1,700,000

Legal software 1,400,000

Financial services software 1,300,000

Marketing software 1,300,000

Communications & media software 1,000,000

Blockchain software 1,000,000

26 Description: As of January 2024, the first leading industry in Software-as-a-Service (SaaS) by number of customers was artificial intelligence software, with nearly three billion customers worldwide. The industry is followed by analytics software, e-commerce software,
and security software, respectively, with approximately 1.9 billion customers each. Read more
Note(s): Worldwide; January 2024
Source(s): The Latka Agency
 Leading industries for Software as a Service (SaaS) companies worldwide
as of January 2024, by funding (in million U.S. dollars)
Top SaaS industries worldwide 2024, by funding

Total funding in million U.S. dollars

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Financial services software 39,500

Artificial Intelligence software 36,100

Analytics software 27,800

ERP software 17,300

Security software 17,100

E-commerce software 16,300

Development software 15,700

Marketing software 15,200

HR software 14,300

CRM & related software 13,800

27 Description: As of January 2024, the top three leading industries in Software-as-a-Service (SaaS) by total funding were financial services software, artificial intelligence software, and analytics software, respectively. While the analytics software industry reaches to 30
billion U.S. dollars in funding, surpassing already the next industry by almost ten billion U.S. dollars, the two leading industries report nearly 40 billion U.S. dollars in total funding each. Read more
Note(s): Worldwide; January 2024
Source(s): The Latka Agency
 Sources

Alphabet
Flexera Software
Gartner
Google
IBM
IDC
Information Services Group
ITCandor
Microsoft
Oracle
Salesforce.com
SAP
Statista
Statista estimates
Synergy Research Group
The Latka Agency

28