Partner Relationship Management (PRM)is pretty much what it sounds like: the strategies, processes, and software tools to organize and optimize external relationships. And though PRM's goal is to "close the loop" between you and the other companies you deal with -- ensuring success across the extended business ecosystem -- the surprise is that the PRM market only makes up approximately 15% of CRM vendors' total revenue stream, according to Forrester Research. PRM has long been led by on-premises solutions, including Oracle's Siebel PRM and SAP's mySAP CRM, but on-demand offerings are starting to creep up. Gartner Research's research VP Gene Alvarez says the rise of on-demand players reflects a prior pain point that had contributed to PRM's sluggishness.
BY CHRISTOPHER MUSICO PARTNER RELATIONSHIP MANAGEMENT RE :TOOLING Rousing from a Slumber The PRM market—often seen as a quiet backwater—may be entering a revival, particularly among B2Bs P A R T N E R R E L A T I O N S H I P M A N A G E M E N T (PRM) is pretty starting to creep up. “We are seeing >> IN A PERFECT WORLD… much what it sounds like: the strategies, processes, and software software-as-a-service gaining traction ...the core set of functionality tools to organize and optimize external relationships. And though in this space,” Band notes. in a PRM solution should PRM’s goal is to “close the loop” between you and the other com- Alvarez says the rise of on-demand include the following: panies you deal with—ensuring success across the extended busi- players reflects a prior pain point that set-up and configuration; ness ecosystem—the surprise is that the PRM market only makes had contributed to PRM’s sluggish- collateral management; up approximately 15 percent of CRM vendors’ total revenue stream, ness. “The enterprise-class solutions according to Forrester Research. were all-encompassing, and as a result partner management; “It’s been at that level for a while, and I often wondered, ‘Is it the deployments took a long time and partner program going to grow and become more important and change?’” says didn’t achieve return on investment management; William Band, vice president and principal analyst at Forrester. “It (ROI) quickly,” he recalls. “Organiza- sales management; seemed pretty sleepy to me until recently.” tions are finding with the on-demand partner training; and A recent Forrester survey, however, suggests that PRM is waking approach they can tackle one problem, partner analytics. up, especially among B2B companies. Listed as one of 19 applica- get ROI, and then build from there.” tion areas, PRM was cited by 28 percent of all respondents as being Regardless of deployment model, Source: William Band, Forrester Research critical to their businesses—roughly in “the middle of the pack,” Band says, pricing is still typically on a Band says. Among B2B respondents, however, that figure zoomed per-seat basis. Licenses for Oracle’s Siebel PRM, for example, to 45 percent. “PRM had been a quiet space,” Band says, “but it’s are approximately $1,500 to $2,000 per seat, he says, while [become] more critical than I expected.” Salesforce.com runs approximately $90 per user, per month. Gene Alvarez, research vice president for Gartner Research, Adam Honig, president and chief executive officer of Boston- also sees a renaissance of sorts. “From a market perspective, it based consulting organization Innoveer Solutions, says that had been quiet since 2004,” he says. “The on-de
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