Hosted versions and better analytics driving CRM in ANZ

IDC specialist Vern Hue outlines trends in the region

Vern Hue, IDC’s ANZ associate analyst for software and services, assesses the regional CRM market.

What are the main trends in the CRM market in Australia and New Zealand?

The adoption of on-demand suites in the CRM market is something we currently see as one of the biggest shifts in the CRM market, as a combination of cost saving measures and a better security postures around protecting data on the cloud has spurred the adoption of CRM delivered on-demand. CRM analytics has also seen significant traction as vendors have begun fusing analytics to make better use of static data residing in databases.

Is SaaS a big one – is hosted CRM gaining widespread adoption?

According to IDC’s research, the SaaS CRM annual revenues (2009) currently stands at 25 percent of all CRM application (licence and maintenance revenues) in Australia and we believe this number will continue to grow.

Do some organisations still prefer to have CRM systems on-premise?

The decision between adopting an on-premise versus an on-demand version largely revolves around an organisation’s size and the sensitivity of data. For larger enterprises, their preference to stay with an on-premise suite would revolve around the flexibility of the on-premise modules to provide more customisations and also around how they have greater control over where their data is stored and the security around it.

Are users better off with CRM specialists rather than getting CRM modules from predominantly ERP vendors such as SAP?

I do not think there is quite a clear-cut answer to this question. It really depends on what the primary needs of the organisation are. Organisations with encompassing ERM software would have advantages of largely “pre-integrated modules” within the back-office suite of applications.

However, organisations which pull data from various sources for a best-of-breed solution have indicated to us that they do so for specific functionality or speed of deployment of CRM pure play solutions, as drivers for best-of-breed solutions.

How is the CRM market different from what it was five years ago, and what trends will we see in the future?

There is an increasing level of consolidation in the enterprise applications market.

Smaller CRM vendors are beginning to be acquired by larger ERP players, as the latter understood that their plain back-office offering is currently not an attractive enough proposition.

The internet has also played a huge role ushering in the on-demand age, as it has created a demand for business to business and business to consumer customer relationships.

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