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 Back to 2005 Press Releases
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Gartner Says Worldwide CRM New License Revenue Returned to Positive Growth in 2004 |
STAMFORD, Conn., September 12, 2005 — The customer relationship management (CRM) industry returned to positive growth in 2004, with worldwide CRM new license revenue totaling $3.5 billion in 2004, an increase of 2 percent from 2003 revenue, according to preliminary results by Gartner, Inc. In 2003, worldwide CRM new license revenue declined 4.4 percent.
The sales segment represented approximately 42 percent of the total CRM market. The highest growth segment was marketing automation, with an increase of 15 percent in 2004.
"The market appetite for application service provider (ASP)-hosted solutions increased substantially as customers enjoyed the ease of implementation and low-cost entry points of subscription-based offerings," said Sharon Mertz, research director at Gartner. "The availability of ASP-hosted solutions neutralized financial inhibitors to adoption for small and midsized businesses and provided solution alternatives for larger businesses."
SAP gained share in terms of reported license revenue, as it maintained the No. 1 position for the second consecutive year (see Table 1). Siebel's growth rate was assisted by the introduction of its OnDemand offering. Salesforce.com was the No. 5 vendor as increased demand for hosted solutions resulted in a growth rate of 84.1 percent.
Table 1
Worldwide: CRM Software New License Revenue Estimates for 2004 (Millions of U.S. Dollars)
| Company |
2004 Revenue |
2004 Market Share (%) |
2003 Revenue |
2003 Market Share (%) |
2004- 2003 Growth (%) |
|
SAP
|
601.2
|
17.4
|
488.4
|
14.4
|
23.1
|
|
Siebel
|
478.3
|
13.8
|
467.3
|
13.8
|
2.4
|
|
PeopleSoft
|
124.0
|
3.6
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115.7
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3.4
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7.2
|
|
Oracle
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122.3
|
3.5
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118.6
|
3.5
|
3.1
|
|
Salesforce.com
|
110.6
|
3.2
|
60.1
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1.8
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84.1
|
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Others
|
2,019.9
|
58.4
|
2,136.9
|
63.1
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-5.5
|
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Total
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3,456.3
|
100.0
|
3,387.0
|
100.0
|
2.0
|
Note: The growth of vendors reporting in their native currency, such as SAP, is artificially augmented because of the currency appreciation against the dollar.
Source: Gartner Dataquest (September 2005)
"The marketplace shifted from a focus on increased productivity and cost reduction to general business growth by acquiring new customers, and by using CRM solutions as a differentiator and value-added component of the overall customer interaction," Ms. Mertz said. "Many buyers are becoming more knowledgeable of their actual requirements and increasingly aware of the business opportunities offered by CRM functionality, suggesting a gradual but positive shift in technology adoption."
Additional information is available in the Gartner report Market Share: CRM Software, Worldwide, 2002-2004, Preliminary. The report is available on Gartner's Web site.
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About Gartner:
Gartner, Inc. (NYSE: IT) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 9,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,900 associates, including more than 1,200 research analysts and consultants, in more than 75 countries worldwide. For more information,
visit www.gartner.com.
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