Oracle CEO Mark Hurd says that consolidation is coming as 'underfunded' cloud software companies get bought up: 'Many of the companies will go away'

Oracle is now considered a major player in software-as-a-service, although it is still lagging Microsoft and Salesforce in the SaaS and cloud software market. That market totaled $107.5 billion in 2017, according to analyst firm IDC. In that same year, Microsoft led the SaaS pack with 9.3% market share, followed by Salesforce with 8.7% and Oracle with 4.1%. SAP was in fourth with 3.6%, followed by Google with 3.5%.

"Smaller SaaS companies are underfunded and will have trouble competing with the big players in this market. If they have unique technology they could become M&A targets. It is expensive to market and serve the SaaS markets and being under-capitalized will hurt their chances to compete for the same businesses big SaaS companies go after today."

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