CRM Market Grows for Fifth Straight Year

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					                                                                                                                                                                        CRM TRENDS
                                                                                                                                                                        AND NEWS


Microsoft’s Million-Member March
Major milestones, and major roadmap promises, at the vendor’s Worldwide Partner Conference ’09

                 icrosoft certainly covered a      our [research-and-development] spend-                           rounded out Microsoft’s midsummer
                 lot of ground during its          ing flat next year—$9.5 billion in aggre-                       roller-coaster ride.
                 seventh annual Worldwide          gate, which is more than any other                                Microsoft has long been known for its
                 Partner Conference (WPC)          company in the world spends on R&D. It                          “holistic view of the business ecosystem,”
in New Orleans in July. The company re-            is a testament to our belief and our opti-                      says Paul Greenberg, founder and presi-
leased several new products, updated               mism about the future.”                                         dent of consultancy The 56 Group, adding
others, celebrated milestones, and un-                That optimism must’ve been sorely                            that the company has grown in large part
veiled a roadmap that analysts seemed to           tested of late: Just days after the confer-                     by using partners to “fill the holes.” That
consider very encouraging, especially in           ence ended, Microsoft announced a year-                         Microsoft Partner Program ecosystem, he
this economy and given the negative pub-           over-year drop in annual revenue for the                        says, now has the company successfully
licity of what one analyst called “The             first time in its history as a publicly                         managing 360,000 partners in addition to
Black Eye”—the product Microsoft                   traded company. A Gartner report re-                            640,000 partner affiliates.
prefers to call by its official name: “Vista.”     leased at roughly the same time, however,
   In his keynote, Steve Ballmer, the com-         pegged Microsoft Dynamics CRM’s an-                             DYNAMICS CRM PASSES 1 MILLION USERS
pany’s chief executive officer, highlighted        nual growth at 75 percent in 2008—com-                          One million may seem impressive, but
eight critical areas of focus—and Dynam-           pared to 12.5 percent for the overall CRM                       some analysts call it little more than hype.
ics CRM was rolled into the final one,             industry. (See “CRM Market Grows for                               “It’s almost a bit of an artificial mile-
under the heading of “other businesses.”           Fifth Straight Year,” below.) The launch of                     stone,” says Warren Wilson, research di-
   “We’re investing despite the economic           its Bing search engine and subsequent                           rector at Ovum Summit, adding that
downturn,” Ballmer said. “We will keep             search-engine partnership with Yahoo!                           Dynamics CRM has seen rapid adoption

     CRM Market Grows for Fifth Straight Year

             he worldwide CRM market ex-              “SAP didn’t do as well as I had antic-                      “The company is pretty focused on
             tended its growth streak to a fifth   ipated,” Mertz says, noting a 0.8 percent                      BusinessObjects this year, and the
             consecutive year, according to a      slide in revenue compared to 2007.                             company’s CRM offering is more well-
     report from Gartner, up 12.5 percent in
     2008, from revenue of $8.13 billion in         Top 5 Vendors in Terms of Market Share
     2007 to $9.15 billion in 2008.
Description: The worldwide CRM market extended its growth streak to a fifth consecutive year, according to a report from Gartner, up 12.5% in 2008, from revenue of $8.13 billion in 2007 to $9.15 billion in 2008. SAP's stagnation was offset by explosive growth from (up 42.7% over 2007) and Microsoft (up 75%), results that Sharon Mertz, Gartner research director, attributes to investments in technologies focused on customer retention, analytics, and on-demand solutions. Another area of interest, deemed "disruptive" with regard to last year's report and still increasing in influence, is social networking. Mertz explains that, in 2007, more than a third of vendors told her social software/networking was top-of-mind for clients.
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