In this article, we discuss the 5 biggest SaaS companies in the world. To read the detailed analysis of the SaaS market, go directly to the 15 Biggest SaaS Companies in the World.
5. Salesforce, Inc. (NYSE:CRM)
Market capitalization as of March 14: $184.01 billion
Salesforce, Inc. (NYSE:CRM) is a pure-play cloud-based software business that provides customer relationship management (CRM) solutions to businesses of all sizes. As an SaaS conglomerate, Salesforce, Inc. (NYSE:CRM)’s offerings include Salesforce Marketing Cloud, a marketing automation platform; Salesforce Service Cloud, a customer service platform that allows businesses to manage customer inquiries, support requests, and case management; Salesforce Commerce Cloud, an e-commerce platform that enables businesses to create and manage online stores, including product catalogs, shopping carts, and payment processing; Salesforce Analytics Cloud, a business intelligence platform; Salesforce AppExchange, a marketplace for third-party applications; and Salesforce Platform, a suite of development tools for building custom applications.
Aristotle Atlantic Partners, LLC commented on Salesforce, Inc. (NYSE:CRM) in its Q3 2022 investor letter. Here is what the fund said:
“We sold Salesforce, Inc. (NYSE:CRM) to reduce our weighting in the Information Technology sector. Salesforce held their investor day, and the company reiterated their organic Fiscal Year 2026 revenue target of $50 billion. This target remains more back-end loaded based on current slowing macroeconomic conditions and requires new annual contract growth well ahead of what the company has been averaging for the past few years. We are skeptical that the company will be able to achieve this revenue target organically and see Merger & Acquisitions (M&A) being key to achieving the growth. While we believe Salesforce has shown good success in growing its non-CRM clouds, we do see more competitive pressures emerging for the Marketing and Customer Service Clouds, specifically on the pricing side during a global economic slowdown.”
Follow Salesforce Inc. (NYSE:CRM)
Follow Salesforce Inc. (NYSE:CRM)
4. Cisco Systems, Inc. (NASDAQ:CSCO)
Market capitalization as of March 14: $201.54 billion
Cisco Systems, Inc. (NASDAQ:CSCO) is primarily known for its networking hardware, software, and services offerings, but it also has a presence in the Software as a Service (SaaS) market. Cisco offers several SaaS solutions, including Webex, a video conferencing and collaboration platform; Meraki, a cloud-based networking platform; and Cisco Umbrella, a cloud security platform that provides businesses with protection against threats such as malware, phishing, and ransomware.
Follow Cisco Systems Inc. (NASDAQ:CSCO)
Follow Cisco Systems Inc. (NASDAQ:CSCO)
3. Oracle Corporation (NYSE:ORCL)
Market capitalization as of March 14: $229.70 billion
Oracle Corporation (NYSE:ORCL) develops and markets enterprise software solutions, including database management systems, cloud services, and enterprise software applications. As an SaaS company, Oracle Corporation (NYSE:ORCL)’s offerings include Oracle Cloud Applications, a suite of enterprise software applications that includes ERP, HCM, supply chain management, and customer experience management solutions; Oracle NetSuite, a cloud-based ERP solution designed for small and medium-sized businesses; Oracle Fusion Cloud Applications, a suite of next-generation cloud-based applications that includes ERP, HCM, supply chain management, and customer experience management solutions; Oracle Eloqua, a marketing automation platform that helps businesses drive more revenue and improve customer engagement; and Oracle Sales Cloud, a sales automation platform that helps companies to manage their sales processes and improve sales productivity.
Oracle generates the bulk of its revenue from the market, and that is why estimates show that it claims 4% of the global SaaS market.
Follow Oracle Corp (NYSE:ORCL)
Follow Oracle Corp (NYSE:ORCL)
2. Alphabet Inc. (NASDAQ:GOOG)
Market capitalization as of March 14: $1.21 trillion
Alphabet Inc. (NASDAQ:GOOG) operates through multiple subsidiaries, including Google, Waymo, Calico, Chronicle, CapitalG, Verily, DeepMind, and X. The company is known for its global internet search industry dominance through Google. This subsidiary is also Alphabet’s ticket into the global SaaS space. Google offers several cloud-based SaaS products that are widely used by individuals and businesses, including Google Workspace (formerly G Suite), a suite of productivity and collaboration tools that includes Gmail, Google Drive, Google Docs, Google Sheets, and Google Slides; Google Cloud Platform, a suite of cloud computing services that includes computing, storage, and application development tools; Google Analytics, a web analytics service that tracks website traffic and provides insights into user behavior; Google Ads, an online advertising platform that allows businesses to create and manage advertising campaigns on Google’s search engine and other websites; and Google Firebase, a mobile and web application development platform that provides tools for building, testing, and deploying applications.
Diamond Hill Capital made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:
“Other bottom contributors included media and technology giant Alphabet Inc. (NASDAQ:GOOG), apparel and footwear company V.F. Corporation and utility operator Dominion Energy. We believe Alphabet’s shares underperformed on concerns of a weakening macroeconomic environment. The company also reported weaker-than-expected earnings and revenue for Q3 2022. Longer-term, we expect Alphabet’s search engine advertising, YouTube advertising and other initiatives to continue driving revenue growth. As such, we used the share price weakness this quarter to add to our position.”
Follow Alphabet Inc. (NASDAQ:GOOGL)
Follow Alphabet Inc. (NASDAQ:GOOGL)
1. Microsoft Corporation (NASDAQ:MSFT)
Market capitalization as of March 14: $1.93 trillion
Like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) is among the global tech juggernauts from the United States. The company is heavily involved in both software and hardware, although the former is becoming more critical to growth.
On the SaaS front, Microsoft Corporation (NASDAQ:MSFT) plays an important role as a provider of cloud-based services to businesses from all over the world through Microsoft Azure. Other SaaS offerings from the company include Microsoft 365, a suite of cloud-based productivity and collaboration tools that includes Office 365, Teams, OneDrive, and other applications; Dynamics 365, a cloud-based business applications platform that includes applications for sales, customer service, finance, operations, and more; and GitHub, a web-based platform that allows developers to collaborate on software development projects.
Microsoft Corporation (NASDAQ:MSFT)’s SaaS offerings are a key part of the company’s growth strategy. They provide a recurring revenue stream and are increasingly in demand as more businesses move their operations to the cloud. According to the latest financial results, the company posted a 2% revenue growth to $52.7 billion for the quarter that ended December 31, 2023. In addition, the company revealed that Microsoft Cloud was central to the revenue growth. Microsoft Cloud revenue grew 22% year-over-year to $27.1 billion.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on 15 Biggest Indian Tech Companies and 10 Stocks to Buy According to Mark T. Gallogly’s Centerbridge Partners.
