Over the past year, the adoption of a remote work structure has intensified the role of technology in organizations. Organizations are seeking new ways to improve their operations to ensure higher productivity. Changing market dynamics have led to an accelerated demand for cloud-based solutions, which has aided the software as a service (SaaS) market. The global SaaS market is expected to reach $436.9 billion in 2025 growing at a 12.5% CAGR. As major players in the industry, we think both MSFT and CRM should continue to benefit substantially from the industry tailwinds.
MSFT has gained 27.2% in price over the past six months, while CRM has returned 23.3% over the period. Also, MSFT’s 33.6% gains year-to-date compare with CRM’s 17.2% returns. In terms of their past year’s performance, MSFT is the clear winner with 40.7% price gains versus CRM’s 4.1%.