The vast enterprise software market continues to be commanded by the few, and the proof is in the sales numbers.
Six vendors will dominate the multibillion-dollar market this year, according to a Futurum Group analysis for chief intelligence officers, based on projected revenue this year.
Microsoft Corp. maintains a commanding lead ($53 billion) through “robust core business capabilities” and Salesforce Inc. is runner-up ($37 billion) on the strength of its CRM offerings and prodigious ecosystem, according to Futurum analyst Dion Hinchcliffe, who authored the study.
There is some room for others, however. Oracle Corp. ($33.5 billion) and SAP ($29.5 billion) delivered enterprise solutions with integrated front- and back-office functionalities. Adobe Inc. ($19.5 billion) excelled in digital marketing and customer experience. And ServiceNow Inc. ($9 billion) has a vice grip-like handle on optimized customer service workflows.
The top-six, which account for a vast majority of the market’s sales, have something in common: Each boasts a wide range of enterprise-grade software solutions across CRM, ERP, and other mainline business functions, Hinchcliffe said. And each is likely to keep its position for the foreseeable future despite AI, as customers stay with a trusted business partner for now.
HubSpot Inc., which serves small- and mid-sized businesses with a user-friendly platform for CRM, marketing, and sales automation, checked in seventh, at $2.5 billion in expected 2024 sales. “We want HubSpot to be an AI native, but we are not monetizing it now,” Andy Pitre, executive vice president of product at HubSpot, said in an interview. “We want to be a disruptor, not the disrupted.”
[Revenue estimates were based on SaaS sales generated from cloud-hosted applications like CRM, ERP, and marketing automation tools; legacy on-premise sales via traditional software licenses and maintenance contracts; and partner ecosystem revenue.]“With all of the AI stuff, it all comes down to maintaining trust,” Keith Kirkpatrick, research director of enterprise applications at Futurum Group, said in an interview. “If you’re a Microsoft customer, you’re not going to say, ‘Let’s sign up with 35 other vendors.'”
“Customers are looking at trusted partners [in AI] and their impact on ROI — not extended time horizon technology,” Kirkpatrick added. “I can’t see companies displacing their vendors unless there is a significant issue.”
An ecosystem approach has amplified the value of enterprise applications, and the fabulous four — Microsoft, Salesforce, Oracle, and SAP — have made significant investments in expanding their partner ecosystems. [Salesforce appreciably upped its game the past several days with the introduction of autonomous AI agents and a partnership with NVIDIA Corp.]
Driving the growth has been the need for scalable, cloud-based enterprise applications, which have benefitted from demand for integrated platforms that unify different areas of business such as sales, marketing, finance, and customer service.
Indeed, businesses no longer rely strictly on traditional on-premise software, the report concluded. Rather, they are shifting to subscription-based SaaS models. As customer demands evolve, companies too are adopting cloud platforms that provide richer insights, faster decision-making capabilities, and enhanced automation, the report concluded.
Platforms for enterprise software are also no longer confined to large-scale IT implementations. They have become essential daily tools for integrating diverse business processes, breaking down data silos, and enhancing user experiences, according to Hinchcliffe.
The move to cloud-based ecosystems has been a game changer, allowing businesses to unify their data, leverage real-time insights, and streamline processes. The shift has been accelerated by the rise of remote work, omnichannel communication, and the need for agile, scalable solutions to adapt to evolving business needs, as well as the rise of generative artificial intelligence.
The dynamics of the market are unlikely to change dramatically at the top, with Microsoft entrenched and likely to extend its lead via AI-related infusions of Dynamics 365 and Office 365. But Salesforce, Oracle, SAP and Adobe are making inroads with their integrated cloud and on-premise solutions.
Though CRM solutions remain a primary focus for vendors like Salesforce, the market is expanding into adjacent areas such as ERP, business analytics, and customer experience management. These platforms are increasingly interconnected, forming ecosystems that integrate third-party applications through marketplaces and app stores. Salesforce’s AppExchange, Microsoft’s AppSource, and Oracle’s Cloud Marketplace are driving substantial indirect revenue for these companies by enabling third-party developers to build on top of their platforms.
“As businesses continue to prioritize digital transformation, the demand for scalable, cloud-based enterprise applications will only grow, solidifying the role of these platforms in the future of work,” Hinchcliffe wrote in the report. “For IT and business leaders, selecting the right platform will depend on a combination of scalability, integration, and long-term business strategy.”
