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Enterprise Software: Rapid Growth for SaaS CRM Software
Worldwide sales for CRM software grew 12.3 percent last year, reaching $26.3 billion, according to Gartner, similar to the growth logged for the previous year.
CRM sales are dominated by just five vendors which make up nearly 45 percent of all sales. The leading CRM vendors are: Salesforce.com, SAP, Oracle, Microsoft, and Adobe. Among these, Salesforce has market share with nearly 20 percent.
Julian Poulter, research director at Gartner, said that “the merger and acquisition activity has resulted in increased competition at the top end of the CRM market, with the continued focus of global vendors’ sales forces driving good growth worldwide in all CRM sub-segments but only for cloud or software as a service(SaaS) applications. CRM growth is driven by cloud service revenue, which, in the application space, uses SaaS as the major delivery model. SaaS revenue grew 27 percent year over year, which is more than double overall CRM market growth in 2015. On-premises new license revenue declined one percent for the same period.”
