Siebel, even when its revenues are separated from its parent company, Oracle, dominates the CRM market for the Americas, leading in five of eight vertical industries, according to a new study from IDC.
As reported in IDC's America's Customer Relationship Management Software 2005 Vendor Shares: Top 10 Vendors by Vertical Market report, Siebel, whose revenue is presented separate from its new parent company Oracle for comparison purposes, maintains the largest share of revenue in five of the eight vertical industries. Market share positioning for CRM software vendors is identified using a vertical segmentation of 2005 revenue.
Acquisition for growth
The acquisition of Siebel by Oracle increases the company's relative strength in each of its first-place industries, but is not sufficient to overtake Amdocs in the communications and media space, Reynolds and Reynolds in the retail automotive sector, or the increasing presence of Saleforce.com in "other" industries.
The "other" industries category contains a number of industries, including professional and consumer services, transportation, and resources, that have a significant share of small businesses that are particularly suited to on-demand applications.
Strongest growth areas
IDC expects the manufacturing, communications and media, and healthcare industries to show the strongest growth in CRM software over the next five years, with compound annual growth rates (CAGRs) of 8.1%, 8.0%, and 7.2%, respectively. Firms that have penetrated into these industries will have the greatest future growth potential in CRM software.
For vendors who want to enter a new vertical market within either the CRM or security software markets, or maintain their existing positioning, IDC recommends that they identify whether the core of their vertical strategy is to provide a range of vertically specific solutions that address needs specific to each industry or whether they plan to become a vertical expert within a select industry or set of industries.
For vendors who want to capitalise on the projected growth of the healthcare industry, it is critical to recognise the high degree of in-house expertise necessary to tap this market. Vendors who want to target the financial services industry should consider the complexity of regulatory concerns, which parallels the complexity in the banking and security and investment services industries, In manufacturing, firms are dealing with ever increasing globalisation. The ability to provide solutions that meet the needs of international organisations is necessary for success in this market, IDC concludes.