IDC Announces the Launch of the Worldwide Semiannual Customer Relationship Management Applications Tracker — An $8.5 Billion Market in 1H 2010

FRAMINGHAM, MA – December 08, 2010 – International Data Corporation (IDC) today announced the launch of the industry's first global tracker covering the full customer relationship management (CRM) applications market on a semiannual basis. Covering six major regions and 13 of the largest country markets, the Worldwide Semiannual Customer Relationship Management Applications Tracker provides biannual market size, vendor share, and forecast data for the four functional markets — Contact Center, Customer Service, Marketing, and Sales — that comprise the CRM applications market.

The CRM Applications Tracker, which covers more than 180 global, regional, and local vendors, is being delivered to clients in both Excel-based spreadsheets and on-line Query tools. A critical component to the Software Trackers is the global presence of IDC's software analysts who interview vendors, channel partners, and integrators on an ongoing basis at the country, regional, and global levels. This information is supplemented by IDC's software contracts database and carefully analyzed by IDC's newly established software company model team before it is entered into IDC's proprietary Tracker data platform. The CRM Applications Tracker is one of five new Software Trackers being launched by IDC this month.

"IDC has been actively investing in its global, regional, and local resources to support its long-term strategy to offer an extensive line of Worldwide Semiannual Software Trackers," said Eric Prothero, senior vice president, Worldwide Tracker Research. "The CRM Applications Tracker represents an important piece of this offering because CRM software is employed in business operations around the world. Our expectation is that the data from this Tracker will help corporate decision-makers and investors to evaluate the leading vendors in this market."

The Worldwide Customer Relationship Management Applications Tracker found that the global market for CRM software grew to $8.5 billion in the first half of 2010 (1H10), a 12.8% increase compared to the first half of 2009. The Marketing segment within the larger CRM market grew nearly 16% year over year, with revenues reaching $1.6 billion worldwide. Asia/Pacific (excluding Japan) was the fastest growing region registering year-over-year growth of 28.2% during the first half of 2010.

"The CRM applications market is at the center of the evolution occurring in human engagement," said Mary Wardley, program vice president, Enterprise Applications and CRM Software at IDC. "The rise in social media and social networking is changing the nature and format of not only customer to business interactions, but employee to customer, customer to customer, and partner to business. CRM applications will experience a radical change over the course of the next five years due to the changing go-to-market strategies of organizations as they respond to the new demands of this environment."

With global CRM revenues of $1.1 billion, Oracle led the worldwide market with a 14.5% global share. SAP was the number 2 vendor worldwide for the first six months of 2010, followed by Salesforce.com and Avaya.

IDC's Worldwide Semiannual Customer Relationship Management Applications Tracker provides total market size and vendor share for the contact center, customer service, marketing, and sales segments of the global CRM software market. Measurement for this tracker is total software revenue, which includes license plus maintenance plus SaaS and other subscription revenue. The Tracker covers six geographic regions with country-level data for 13 nations. Annual five-year market forecasts for this Tracker are updated semiannually and include five-year annual market projections. Forecasts are available at worldwide, regional, and country levels.

For more information about IDC's Worldwide Semiannual Software Trackers, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com [http://www.idc.com].

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