AMR Research: Sales of Hosted CRM Applications Jump 105 Percent

Share this content:
Sales of hosted customer relationship management applications grew 105 percent in 2004, according to a new report from AMR Research, Boston.

Two leaders in the hosted CRM market, RightNow Technologies and, enjoyed 97 percent and 83 percent growth rates, respectively, the report said. grew from number 22 in 2003 to 12 in 2004 in terms of total CRM revenue.

"The hosted model has reinvigorated a market that failed to grow over the past several years," AMR senior research analyst Rob Bois said in a statement. "The hosted category has changed the whole perception of customer management with faster implementations, quicker time to value, and easy customization."

AMR's report indicates that the hosted model has reached prime time as a delivery method for CRM applications.

The hosted model differs from traditional licensed software because applications are served over the Web, rather than installed on-site. In addition to impressive hosted growth, the overall CRM market saw double-digit growth for the first time in five years.

However, the market is still led by traditional installed-base application vendors.

SAP, which had the No. 1 spot, grew its customer management applications business by 30 percent and unseated Siebel as the revenue market share leader.

AMR expects SAP to continue to grow, especially in the manufacturing sector where the company holds an advantage.

Siebel's CRM OnDemand represents one of the largest growth opportunities for the company as the product continues to gain momentum, AMR said.

The overall CRM applications market grew a healthy 10 percent in 2004. Across the top 40 customer management vendors evaluated in the report, five grew at over 50 percent from 2003 to 2004: Concerto, Digital River,, RightNow Technologies and Unica.

Microsoft, another winner, topped 3,500 customers and recorded 32 percent growth.

Melissa Campanelli covers postal news, CRM and database marketing for DM News and To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above