Gartner Says Worldwide CRM Total Software Revenue Increased 14 Percent

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Driven by significant gains in license and maintenance revenue, total worldwide customer relationship management software revenue was $5.7 billion in 2005, a 13.7 percent increase from 2004, according to a report from Gartner Inc.

The report, "Market Share: CRM Software Worldwide, 2005," said SAP was the No. 1 CRM vendor based on total software revenue, with a 25.9 percent market share in 2005.

Increased mid-market opportunity drove growth across the CRM landscape for both the large suite vendors and on-demand providers, such as Salesforce.com.

Siebel's strong fourth quarter results drove growth, but at the expense of Oracle and PeopleSoft. Industry specialists like Amdocs also benefited from high demand for vertical market solutions, according to the report.

Gartner, Stamford, CT, said it has traditionally measured market share in terms of new license revenue. However, because of the increasing popularity of open-source software and buyer consumption models like hosted and subscription offerings, Gartner has started to measure market share in terms of total software revenue. This includes revenue generated from new license, updates, subscriptions and hosting, technical support and maintenance. Professional services and hardware revenue are not included in total software revenue.

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