CRM market trends

What is a customer relationship management software?

CRM or customer relationship management software is an organization wide business strategy which is designed to reduce cost and increase operational efficiency, Customer satisfaction, customer loyalty, and advocacy. The content of the report has latest facts and figures about current market trends of the CRM industry. In particular with cloud based CRM systems especially  Salesforce.com CRM.

Scope of the article:

·         Market size and share information about Indian CRM market.

·         Major areas of focus including sales automation, Service automation, marketing automation, Collaborative tools and flexibility with other Technologies which includes web services.

·         Key players salesforce.com, oracle Seibel, Microsoft dynamics, SAP AG

Image Courtesy:Forbes

International CRM market share

The Tier 1 enterprise software market is dominated by Oracle Siebel, SAP CRM and Salesforce. SAP and Oracle were early entrants to the India market in 1990s. Oracle's Siebel product and Amdocs have largely penetrated the India software landscape along vertical markets, while SAP CRM has been more broadly adopted in largest part riding on the coattails of SAP's highly successful enterprise resource planning (ERP) software suite. While Oracle CRM and PeopleSoft are gradually being phased out on a global basis, these legacy solutions may operate longer in India than other global regions as many local companies have less desire to upgrade than their international counterparts.

The on demand model for CRM systems is increasing rapidly CRM vendors like Salesforce.com, Microsoft dynamics, ZOHO etc.., has a strong cloud presence. They came up with the revolutionary software as a service or SAAS model. Which will help customers to pay for what they actually use.

Even though oracle and SAP CRM and SAP AG have strong presence in Indian CRM industry the main dis advantage is that these softwares are on premise soft wares. They are very expensive to maintain and operate and their scalability is less. So the new trends of the industry started to shift towards SAAS model which is completely cloud based.

Software as a Service (SaaS) in India:

Software-as-a-service (SaaS) is poised to grow seven times faster than on premises application software for the next three years, reports research firm Gartner. By 2011, a quarter of new business software is projected to be SaaS.

SaaS penetration in India is somewhat inconsistent in terms of market share however much more constant in terms of growth projections. One research study estimates the India Software as a Service (SaaS) market at USD $65M in 2010 and projected to grow in excess of 20% annually. In another research report, the market for on-demand solutions in India is over USD $32 million in 2009 and expected to grow at a CAGR of 50% to 60% for the next few years. Notwithstanding the task of achieving consistent estimates in a complex region, SaaS is forecast to be the preferred mode for new CRM implementations in the coming years especially for SMBs.

Salesforce and Multitenancy Architecture (SaaS Architecture):

Imagine an apartment with shared resources which has common gas line , Cable tv and water resources and all the occupants of the house have the flexibility to pay for what they actually use. This is how salesforce work.

Multi-tenancy is an architecture in which a single instance of a software application serves multiple customers. Each customer is called a tenant. Tenants may be given the ability to customize some parts of the application, such as color of the user interface ( UI) or business rules, but they cannot customize the application's code.

Multi-tenancy can be economical because software development and maintenance costs are shared. It can be contrasted with single-tenancy, an architecture in which each customer has their own software instance and may be given access to code. With a multi-tenancy architecture, the provider only has to make updates once. With a single-tenancy architecture, the provider has to touch multiple instances of the software in order to make updates.

In cloud computing, the meaning of multi-tenancy architecture has broadened because of new service models that take advantage of virtualization and remote access. A software-as-a-service 

(SaaS) provider, for example, can run one instance of its application on one instance of a database and provide web access to multiple customers. In such a scenario, each tenant's data is isolated and remains invisible to other tenants.

Who am I?

                I am Nirmal Christopher, Currently working as  a salesforce technical consultant in Chennai, India. I have 1.4 years of experience in Salesforce CRM which includes skills in the areas such as Support, customization, Administration, Application development, data migrations, Training end users, Non profits for salesforce etc.

I have implemented CRM solutions for 8 customers who plays big role in variety of industries like heath care, IT, Consumer Electronics , Manufacturing, NGO’s etc…

Any questions reach me at +919952851577

Email: Nirmal.christopher@gmail.com