Gartner Research

Forecast Overview: CRM Software, Worldwide, 2016 Update

Published: 29 November 2016

ID: G00316334

Analyst(s): Julian Poulter , Ed Thompson , Yanna Dharmasthira

Summary

While SaaS now dominates CRM application software, hybrid cloud will become the primary adoption model by 2020. CRM will continue to be the fastest-growing business software application market. This document outlines the drivers of this growth.

Table Of Contents
  • Overview
  • Companion Documents

Market Description

  • 2017 Tipping Point Surpassed: CRM Cloud Spending Now Exceeds Spending on On-Premises Worldwide
  • CRM Enables Digital Business With the Internet of Things
  • Hybrid Is the Dominant Purchase Style Through 2020
  • Adoption of SaaS Varies by CRM Submarket, With Sales Moving Fastest
  • Mature Geographical Markets Focus More of Their CRM Spend on SaaS Offerings Than Emerging Markets

Foundational Assumptions

  • Functional Expansion and User Expansion
  • Purchase-Style Adoption
  • Replacement Purchase Style

Market Model or Methodology

  • Forecast Components
    • Traditional License Forecast
    • Cloud Forecast
    • Subscription/Hosted Forecast
    • OSS Forecast
    • CRM Revenue Forecast
  • Negotiated Factors
    • Price and Maintenance
  • Demand-Side Influencing Factors
    • Company and Unit Adoption
    • Purchase Style
    • Functional Expansion
    • Unit Expansion
    • Replacement
  • Supply-Side Influencing Factors
    • Hardware and Software Technology Innovation
    • Business and Technology Roadmaps
    • Product Design and Pricing

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.