Garner Says CRM Usage Increasing

Worldwide CRM market revenue totalled $9.15 billion in 2008, a 12.5 percent increase from 2007 revenue of $8.13 billion, according to Gartner Inc. Analysts said that market growth was driven by enterprise investments in technologies focused on customer retention, analytics and on-demand solutions.

Software as a Service (SaaS) continued to drive the market forward, representing nearly 20 percent of total CRM software market revenue in 2008, up from just over 15 percent in 2007. Interest in social networking and social software also escalated in 2008 as businesses were confronted with the sales, marketing, and serviceability impact of increasing consumer participation in online forums.

SAP continued to be the market leader accounting for 22.5 percent of worldwide CRM software revenue in 2008 (see Table 1), but this is down from a 25.5 percent share in 2007. Microsoft experienced the strongest growth rate among the top 5 vendors, as its revenue increased 75 percent in 2008.

Table 1
Worldwide Vendor Revenue Estimates for Total CRM Software (Millions of U.S. Dollars)

Company

2008

Revenue

2008 Market Share (%)

2007

Revenue

2007 Share (%)

2007-2008 Growth (%)

SAP

2,055

22.5

2,072

25.5

-0.8

Oracle

1,475

16.1

1,320

16.2

11.8

Salesforce.com

965

10.6

676

8.3

42.7

Microsoft

581

6.4

332

4.1

75.0

Amdocs

451

4.9

419

5.2

7.6

Others

3,620

39.6

3,311

40.7

9.3

Total

9,147

100.0

8,130

100.0

12.5

Source: Gartner (July 2009)

Marketing automation also continued to grow in 2008, with a 10.4 percent increase, representing 20.6 percent of the CRM market. Customer service and support represented 36.6 percent of the CRM software market, as this segment grew 11.2 percent in 2008.

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