Revenues from the worldwide customer relationship management software market hit £3.1bn last year, figures from industry analyst Gartner have revealed.
The figures mark an increase in revenues of 13.7% over 2004, boosted by the health of the commercial sector. Gartner research director, Sharon Mertz, said, “As business confidence returned in a strong commercial economy, buyers focused on solutions that drive revenue and expand business opportunities.
“Robust gains resulted from strong vendor performance across the market, continued rapid adoption of on-demand solutions, increasing penetration of emerging markets, and buyer recognition of CRM applications as key drivers of customer acquisition and retention.”
The growth of hosted and subscription services, along with increased use of open source software, has sparked a change in Gartner’s measurement of market share from counting new licence revenue to total software revenue.
But SAP stayed at the top of the suppliers’ league, with a 25.9% market share, ahead of Siebel’s 17% and Oracle’s 6.4%. The increasing market for on-demand provision saw revenues at Salesforce.com rocketing upwards by 77.7% between 2004 and 2005, taking it to fourth place with a 4.9% market share.