Microsoft is experiencing strong growth in its platform as a service (PaaS) Azure, and their customer relationship management (CRM) application Dynamics.
Early SaaS adopters bought Salesforce applications. Current Salesforce automation implementers are buying Microsoft applications as cloud services.
That means Microsoft in the second quarter of 2016 overtook Salesforce as the overall software-as-a-service market leader, according to John Dinsdale, director of research at the Reno, Nev., based Synergy Research Group.
Being the market-share leader is a good position to be in when the SaaS market grew at a rate of 33% in the second quarter of 2016, compared to the same period in 2015. The worldwide SaaS market produced revenues of $11 billion in the second quarter, according to Synergy's announcement.
Microsoft moved into that position powered mainly by its strength in selling collaborative SaaS software used in Salesforce automation and elsewhere in the enterprise, such as Microsoft:
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