CRM applications market regains positive growth: IDC

FRAMINGHAM: According to a recent IDC study, the customer relationship management (CRM) applications market returned to positive growth in 2004 due to the resurgence of demand by user organizations. In 2004, the CRM market grew 8%, resulting in total market revenues of $8.8 billion. The study also finds that buyers' intentions to implement CRM and to focus on CRM initiatives remain high in 2005.

"The CRM applications market turned an important corner in 2004," said Mary Wardley, vice president of CRM Applications research at IDC. "The growth of the relative newcomers as well as new functionality and licensing models from established vendors have rejuvenated the market and turned the spotlight on true customer need. End users are the winners in this shift as the market now focuses on business benefits rather than functionality for the sake of functionality."

Siebel, Oracle, and SAP, all established CRM suppliers, dominate the top three CRM applications market positions. Siebel, the market leader, captured 10.7% market share in 2004, while Oracle, with the supplement from its PeopleSoft acquisition, barely moved ahead of SAP to capture second place. From a regional view, North America is the largest region within the CRM applications market, accounting for 60.3% of worldwide revenue in 2004, with Western Europe representing 28.8% of the market.