Gartner Research

Forecast Overview: CRM Software, Worldwide, 2016 Update

Published: 29 November 2016

ID: G00316334

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


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

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