SAP Watch

Jul 2 2008   9:58AM GMT

SAP CRM trounces Oracle,

JackDanahy Jack Danahy Profile: JackDanahy

AMR Research has just released its CRM market analysis of 2007. There are plenty of interesting facts in the report, starting with the growth of the market. CRM revenue grew by a gaudy 12 percent in 2007, which AMR points out is “the strongest year-over-year growth for the segment since 2000.”

Here are the leading CRM vendors, with their 2007 total revenue and revenue growth rate:

1. SAP $2.7 billion (20%)

2. Oracle $1.9 billion (39%)

3. $749 million (51%)

4. Cegidim Dendrite $602 million (82%)

5. Amdocs $522 million (14%)

6. Aspect $480 million (-2%)

7. Verint Witness Actionable Solutions $395 million (78%)

8. Microsoft $360 million (39%)

9. SAS $323 million (34%)

10. Avaya $267 million (2%)

The most impressive organic growth rate was posted by perennial SAP heckler, but SAP’s much larger revenue numbers give it the last laugh. Given how late SAP entered the CRM market, it is no mean achievement. Siebel (later acquired by Oracle) had a head start of several years whereas cornered the market on buzz, but SAP has demonstrated that it can dominate any segment of enterprise applications seemingly at will.

Something else to consider is that, of the top three CRM vendors, SAP has a possible edge in terms of global reach. Given SAP’s recent growth numbers in India and strong sales and development and footholds across Asia, for example, it seems likely that SAP CRM can crack the huge Indian and Chinese markets in advance of the other majors. If so, this would give SAP a continuing lead in CRM.

It bears repeating that, although these numbers might draw a ho-hum from people who are accustomed to thinking of SAP as a leader in various enterprise applications segments, they are all the more remarkable given the state of the marketplace in the early part of this decade. I still remember watching Tom Siebel in Los Angeles about five years ago arguing that Siebel’s CRM revenue would eclipse SAP’s total revenue by the 2010s, and a lot of audience members bought it. How much has changed since then!

Demir Barlas, Site Editor

2  Comments on this Post

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  • Piyush Bakshi
    SAP has been around for longer than Oracle, has a stronger position in Asia and has a higher turnover. Oracle has been too focused to grow via takeovers whereas SAP has for years grown organically. Maybe when Oracle and streamline and align all its offerings including those from its acquisitions, it may mount a stiffer challenge to SAP.
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  • Venkat
    SAP as a product is maturing than anyone than evaer before in CRM front. It may take little time for others to digest and accept. Hardcord SAP CRM Fan.
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