Competition Heats Up as SAP Grows Revenue by 30% and Takes Revenue Lead in CRM Sales of hosted customer management applications grew 105% in 2004, according to report released today by AMR Research. The report indicates that the hosted model has reached prime time as a delivery method for Customer Relationship Management (CRM) applications. The hosted model differs from traditional licensed software because applications are served over the web, rather than installed on-site. In addition to impressive hosted growth, the overall CRM market saw double-digit growth for the first time in five years. Two leaders in the hosted CRM market, RightNow Technologies and salesforce.com, enjoyed 97% and 83% growth rates, respectively. salesforce.com rocketed from number 22 to 12 in terms of total CRM revenue. However, the market is still led by traditional installed-base application vendors. 
“The hosted model has reinvigorated a market that failed to grow over the past several years.” said Rob Bois, senior research analyst at AMR Research. “The hosted category has changed the whole perception of customer management with faster implementations, quicker time to value, and easy customization.” In the heated battle for the number one spot, SAP, buoyed by favorable currency exchange rates, grew its customer management applications business by an impressive 30% and unseated Siebel as the revenue market share leader. AMR Research expects SAP to continue to grow, especially in the manufacturing sector where the company holds an advantage. Siebel’s CRM OnDemand represents one of the largest growth opportunities for the company as the product continues to gain momentum. 
The overall CRM applications market grew a healthy 10% in 2004. Across the top 40 customer management vendors evaluated in the report, five grew at over 50% from 2003-2004 (Concerto, Digital River, salesforce.com, RightNow Technologies, and Unica). Microsoft, another winner, topped 3,500 customers and recorded 32% growth. AMR Research’s depth and breadth of quantitative research is augmented with industry expertise by the firm’s research analysts. The Market Analytix Report Series provides technology vendors with targeted marketing and competitive information on key application markets of ERP, SCM, CRM, procurement, PLM, and HCM. For more information or a copy of the formal CRM report, please contact AMR Research at (617) 542-6600. Additional information can also be found on the company’s website www.amrresearch.com. About AMR Research:
AMR Research provides world class research and actionable advice for executives tasked with delivering enhanced business process performance and cost savings with the aid of technology. Five thousand leaders in the Global 1000 put their trust in AMR Research’s integrity, depth of industry expertise, and passion for customer service to support their most critical business initiatives, including supply chain transformation; new product introduction, customer profitability, compliance and governance, and IT benefit realization. More information is available at www.amrresearch.com.
|
;)
;)