For Business Process & Applications Professionals

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	October 20, 2006 CRM Market Size And Forecast, 2006 To 2010 Buyers Face A New Vendor Landscape by William Band with Andrew Bartels, Mary Ann Rogan	Average: 4  (4 ratings)

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Executive Summary

The market for customer relationship management (CRM) solutions has changed significantly during the past 18 months. Consolidation of leading CRM vendors (Epiphany/Infor Global Solutions, Onyx Software/M2M Holdings, Oracle/PeopleSoft/Siebel), intensified competition from well-capitalized business applications players (SAP and Microsoft), and the rise of new software-as-a-service (SaaS) deployment options (salesforce.com, RightNow) mean enterprises must rethink their CRM solution strategy. Enterprises will continue to make significant investments to improve their customer-facing capabilities. However, the need to extract additional value from past expenditures and a lack of game-changing innovations from vendors will result in moderate market growth. Enterprise buyers should: 1) invest selectively in high-value upgrades; 2) focus on customer-process optimization; and 3) demand support from vendors to optimize existing CRM infrastructures. IT vendors should: 1) stretch harder to innovate; 2) focus on distribution and support; and 3) add value in new offerings such as CRM advisory services, hosting, and SaaS.

TABLE OF CONTENTS

• Enterprises Continue To Invest In CRM, But Buyers Are Cautious
• The CRM Applications Market Will Grow At A Moderate Pace

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