Salesforce.com passed SAP as the lead vendor in the worldwide customer relationship management (CRM) software market in 2012, says Gartner.
The research company says "competition among CRM software vendors really heated up in 2012" and total worldwide CRM software revenue totaled $18 billion in 2012, up 12.5 percent from $16 billion in 2011.
"Competition among CRM software vendors really heated up in 2012, as major players continued to vie for broader market penetration internationally and more widespread adoption within midsize to large enterprises," says Joanne Correia, vice president at Gartner. "Market growth in 2012 was three times the average for all enterprise software, highlighting how CRM is at the eye of the Nexus of Forces storm."
According to Gartner, vendor in this space benefited from strong demand for SaaS, which represented nearly 40 percent of CRM total software revenue in 2012.
The top five CRM vendors accounted for nearly 50 percent of CRM software revenue in 2012.
Salesforce.com replaced SAP as the largest vendor in the CRM market as its direct sales pushed its CRM revenue to more than $2.5 billion.
"With corporate cash at all-time highs, many vendors are willing to pay high premiums to acquire specific technologies and expertise in an increasingly dynamic and competitive CRM market environment," adds Correia.