The State of the Enterprise CRM Market
Salesforce.com continues to be the Customer Relationship Management (CRM) software market leader with around a 20% share by the end of 2015. SAP, Oracle, and Microsoft have all stabilized over the last several years, but SAP and Oracle are showing signs of a steady decline at the expense of the other CRM providers. Of the “Big Four” CRM suppliers, Salesforce.com remains the clear front runner in 2016, and due to the relatively unimpressive results from the other challengers, we believe Salesforce.com will remain at the top this year as well. To make matters worse for SAP and Oracle, the industry trend of CRM as a Software-as-a-Service (SaaS) achieved the tipping point in 2015, whereby SaaS CRM revenues surpassed that of on-premise revenues. As a result, we see continuing problems ahead for SAP and Oracle. Microsoft CRM, which does offer a SaaS version could become the industry #2 in a few years under the current trajectory.
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