40% of Companies Are Using Hosted CRM Applications

US

AMR Research: Research Advisory Firm Predicts Customer Relationship Management Budgets Will Increase 8% This Year. Projected that 40% of companies are using hosted Customer Relationship Management (CRM) applications. The hosted model differs from traditional licensed software because applications are served over the web from an off-premises provider. Software companies such as salesforce.com and more recently Siebel, with its On-Demand product, have popularized this model for customer management. The use of hosted CRM is rapidly growing, even among larger organizations. Challenge the assumption that SMBs are responsible for the vast majority of hosted application engagements: 28% of large companies (5000+ employees), 39% of mid-tier companies (1000 – 4,999 employees), and 41% of small-to-medium sized businesses have planned deployments over the next 12 months.

Hosted applications have emerged as a growing and extremely viable delivery method for CRM applications, even among larger organizations.

• 49% of all companies will use hosted sales or e-commerce applications within the next 12 months. This includes almost half (47%) of large companies

• The deployment of hosted sales force automation applications is more prevalent among larger organizations (31%) than SMB companies (22%)

In the past, hosted CRM has been considered prevalent mostly in the SMB market. Our research shows that companies of all sizes are now using hosted applications as revenue generation becomes a top priority. This, coupled with shorter implementation times, makes the hosted model very attractive. Robust growth in 2006 CRM budgets. 50% of companies surveyed plan to increase their customer management software budgets in 2006 and total customer management budgets will increase 8.2% on average from 2005 to 2006.

Customer Relationship Management (CRM) applications Publ 20050525 CRM?