CRM Software Market Overview
The global on-demand CRM software market has grown rapidly in the last 5 years, from less than $500 million in 2005 to $2.3 billion in 2009, which represents an average annual growth rate of 46%. This compares to a single-digit growth rate for on-premise CRM software.
The reasons behind the tremendous growth in on-demand CRM software are the speed and ease of implementation, the low total cost of ownership and cost-effective benefits for customers, and the ease of integration with existing applications. Salesforce.com is one company that specializes in delivering CRM software on-demand. It is expected to benefit more than its competitors from the continued strength in cloud-based CRM software, with the majority of its market share growth likely coming at the expense of rival SAP, whose market share has declined over the last three years.