Worldwide On-Demand CRM Applications 2007-2011 Forecast Update and 2006 Vendor Shares: Diverse Strategies Aim to Differentiate in an Increasingly Competitive Landscape

Abstract

This IDC study provides the market sizing and vendor shares for the worldwide on-demand customer relationship management (CRM) applications software market in 2006 and forecast for the 2007-2011 time period. Market trends are provided, along with the future market outlook and guidance to CRM software vendors.

"The on-demand construct currently plays a significant role in the CRM applications market space. Although the delivery model has not become the dominant delivery mechanism, it is forecast to control nearly a quarter of the market by 2011." - Mary Wardley, research vice president, CRM Applications research.

"Those suppliers evaluating entering the on-demand CRM applications market or offering another application via the software-on-demand delivery model should focus on critical success factors when moving to an on-demand business/delivery model including making clear investments in R&D, sales, and marketing as well as aligning the internal organization to the subscription-based model. Software on demand entails a business transformation in which companies need to prepare," says Erin TenWolde, research manager, Software as a Service.