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Salesforce.com Takes Lead Over SAP in CRM Market Where SaaS, Apps Dominate

Gartner has just produced some new figures that appear to confirm that customer relationship management (CRM) will have a significant mobile presence by next year.

CRM Apps

Over the next two years, Gartner researcher Ed Thompson says, significant shifts in the CRM market will see more than 1200 CRM apps available for download in the various app stores, while more than 50% of all CRM revenue for certain apps will be delivered as Software-as-a-Service by 2016.

In both cases — wider availability of apps, SaaS CRM — the trends point to increasingly mobile workforces that need quick and rapid access to their customer information.

From a vendor perspective, the research contained in the Predicts 2013: CRM Goes More Cloud, Becomes an App, Has a New Leader and Changes Name, which has just been made public, contains some good news too.

According to Gartner, CRM is still one of the top priorities for CIOs with attracting and retaining customers their fourth priority in Gartner’s survey of 2053 CIOs for this year.

Salesforce.com, SAP

Interestingly, Salesforce.com is now the top CRM vendor having surpassed SAP in terms of revenue. Salesforce had revenues of US$ 2.5 billion last year, an increase of 26% on its figures for 2011. For its part, SAP only grew 0.1% for the same period with total revenues of US$ 2.6 billion in CRM, which would seem to suggest that, at least in this space, SAP has stagnated.

As salesforce.com has achieved this milestone it will gain more support from Tier 1 system integrators (such as Accenture, IBM, Deloitte and Capgemini), which already conduct 16 percent of their CRM project work with salesforce.com. Additionally, salesforce.com will attract more interest from buyers in the many geographies where it does not hold the No. 1 spot," Thompson said.

But there are two insights here that really stand out

1. CRM Apps In Apps Store Will Grow 500%

While many organizations are looking to extend customer service to the mobile platform market, not all applications are suitable as mobile apps.

In this respect enterprises need to consider four different things to build a successful mobile applications strategy:

  • Demand: What businesses need and what application(s) can fulfill that need.
  • Supply: What staff and skills are needed to manage external partners.
  • Control: An Enterprise CRM strategy, who manages it, and who is responsible for it.
  • Risks: What could derail the strategy and other factors that will affect it.

Vendors, Gartner says, will have to decide what kind of CRM mobile apps to support as well as assess what functionality should be provided with the apps. They will also have to decide what apps they should provide free of charge and what ones should be charged.

2. CRM and SaaS

Enterprises have been quick to see the benefit of SaaS and it is estimated that by 2015, nearly half of the revenues in CRM will be delivered as SaaS.

By the end of last year, 39% of CRM software revenues were delivered by SaaS and that is expected to increase to 42% by the end of this year. The global figures for CRM development are equally impressive with the market forecast predicting a combined SaaS, CRM growth of 9.7% this year, while SaaS CRM will increase by 18%.

While SaaS CRM applications have hardly scratched the market, with others the level delivered as SaaS is as high 98%. The dominant trend, however, appears to be a mix between SaaS and non-SaaS deployments.

 

 
 
 
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