These are heady times for midmarket CRM. Two research firms recently issued reports highlighting significant growth, and a third predicts that Software as a Service (SaaS), the technology pushing much of the midmarket spending, will continue to pick up steam.
According to New York-based Access Markets International (AMI) Partners Inc., almost 40% of midsized businesses use CRM applications today, and almost one quarter plan to adopt CRM in the next year. That amounts to some serious spending. Cambridge, Mass.-based Forrester Research Inc. predicts that small and midsized businesses (SMBs), companies with 1,000 employees or fewer, will account for 38% of total CRM spending by 2010, reaching $4.2 billion.
Meanwhile, Gartner Inc., based in Stamford, Conn., said this week that the SaaS market will grow from $6.3 billion in 2006 to $19.3 billion by 2011. CRM and human resources applications have fueled the initial deployments, and SaaS is now expanding to procurement and compliance management, according to Gartner.
While SMBs present a major opportunity for CRM vendors, one of the largest SaaS CRM vendors is pushing its way into enterprise businesses. Last week, San Francisco-based Salesforce.com announced a In fact, Salesforce.com was identified as a "strong contender" in the Dynamics CRM 3.0 release. It, too, is planning a Open source vendors like CentraView and Vtiger are also appearing in deals, according to the report, particularly in shops that already have some stake in open source technology.