SAP Watch

Aug 23 2007   6:45PM GMT

SAP CRM second to Oracle?

JackDanahy Jack Danahy Profile: JackDanahy

Research firm Datamonitor’s recent report on the CRM market pegs Oracle as number one, followed by SAP. Microsoft? Not so much. From Stuart Lauchlan’s analysis:

Datamonitor concludes that Oracle is a clear market leader with an impressively versatile and highly competitive CRM portfolio while SAP is also recommended as an automatic shortlist choice due to the excellence of its CRM modules and dominant impact on the market […] There are possible alternatives in the form of Chordiant, Infor and, but these have to remain competitive if they are to continue to be considered as market leadership challengers. Other possible contenders include Consona, Microsoft and RightNow Technologies if they enhance their profile among end-users or deliver on the considerable promise of their forthcoming releases.

It is true that Oracle has made substantial acquisitions over the past couple years. Indeed, the time for decrying the Siebel- and PeopleSoft-mess as more bluster than actual business benefits has come and gone. But does that translate to automatic CRM dominance, especially in light of SAP’s admittedly excellent offerings? What about the pesky little deal that SAP is actually leading in market share? We asked Lauren Hoyt, site editor of our sister site, for her take on the issue:

It’s hard to deny that Oracle has a clear lead in CRM deployments, thanks in large part to their acquisition of Siebel Systems. Siebel has 4.6 million users, and Oracle and Siebel combined can claim 5.6 million. Meanwhile, SAP leads in market share. Still, don’t count out or Microsoft. Analysts predict significant spending on CRM in the next few years, which should be telling from a market share perspective. My sense is that the vendors that can do a few things — design a friendly user interface (UI), help customers design a real strategy for managing customer relationships, capitalize on the now ever-prevalent on-demand market and finally, blend its product with social media opportunities — will be the winner in the long run.

Will that winner be Oracle, SAP, Microsoft or any of the other CRM players? Submit your comments for a chance to win a free copy of “mySAP CRM Interaction Center” by Thorsten Wewers & Tim Bolte, courtesy of SAP Press.

Matt Danielsson

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