Leading SaaS providers by market capitalization 2019

As of June 2019, Salesforce is the world’s largest Software-as-a-Service (SaaS) company in terms of total market capitalization. Salesforce’s market cap stood at 117.8 billion U.S. dollars, while the other major competitors in the market such as ServiceNow, Workday, and Shopify were valued between 30 and 50 billion dollars.

Software-as-a-Service (SaaS)

Software-as-a-Service is a type of sales model in which software companies license their products to users on a subscription basis. These software applications are often hosted by the provider, with users accessing the products over the cloud. By 2020, forecasts suggest that the public cloud SaaS market will be worth a total of over 150 billion dollars, doubling since 2015. In addition to the SaaS companies listed above, established software companies such as Microsoft and Oracle have entered the market as well in order to ensure that their existing packages continue to meet the changing demands of consumers. As of 2019, five companies (Microsoft, Salesforce, Adobe, SAP, and Oracle) account for half of the total enterprise SaaS market share.

Market capitalization

Market capitalization is a commonly used metric that measures the total size and market value of a firm. It allows investors to quickly understand the risks associated with a company. As of June 2019 Microsoft has a market cap of over one trillion dollars, making it the highest valued tech/internet company in the world.