Technology Industry
Industry: Email Alert RSS FeedThe customer relationship management spend.(IT By The Numbers)
MSI, December, 2004
Gartner believes hosted CRM software is an idea whose time has come. The Stamford, Conn.-based research firm foresees businesses investing close to $1 billion in hosted CRM applications by 2009. That would represent a five-year compound annual growth rate of 41 percent. Meanwhile, Gartner expects purchases of on-premise CRM applications to decline by 2.4 percent over the same time period. Gartner also expects small and medium-size businesses (SMBs) to drive the growth of hosted CRM, predicting that 33 percent of SMBs will have adopted the model by 2009.
Reasons for this migration, according to Gartner:
* Hosted CRM is cheaper
* It's easier to implement
* Newer versions nearly match on-premise functionality
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