How Much Attention Do CRM Vendors Give to CRM?

CRM Vendor Commitment to CRMMany CRM vendors also publish non-CRM products. Should you be concerned to what degree a vendor focuses on CRM compared to other product lines, or is a vendor’s overall financial commitment to CRM a more important factor? Below is some general information as to how much relative revenue each vendor obtains from its CRM applications.

SugarCRM – SugarCRM currently boasts over one million end users between its free open source and its commercial open source offerings. The company only offers CRM and does not publish or sell any non-CRM software.

Salesforce.com – In its 2011 annual report, salesforce.com stated: “The majority of our subscription and support revenue comes from subscriptions to our core CRM application and Force.com application development platform.”  Salesforce.com also reported that it derives over 90% of its revenue from subscriptions and support for its CRM editions: Contact Manager Edition, Group Edition, Professional Edition, Enterprise Edition, and Unlimited Edition. Salesforce.com owns several products that are not strictly in the CRM category, including Radian6 and Heroku.

Microsoft – Microsoft’s CRM product, Microsoft Dynamics CRM is a part of the Microsoft Business Division. In addition to CRM, the company’s Business Division publishes a number of ERP products, including GP, Nav, SL and AX. For the quarter ending December 31st, 2011, the Microsoft Business Division reported $6.28 billion in revenue, which accounted for approximatesly 31% of Microsoft’s total quarterly revenue of $20.89 billion. Microsoft does not publish what percentage of its Business Division’s revenue comes from CRM.

Oracle – is recognized as the largest database vendor in the world. In August  2011, Trefis reported that Oracle’s Application Software business, which is made up of of its ERP, CRM and other products, produces nearly 28% of its total software revenues.

Sage – Sage’s most popular products are Sage ACT!,  Sage Peachtree (to be rebranded Sage 50 as of May 2012), and Sage Simply Accounting. While Sage ACT! has been traditionally classified as a contact manager rather than a CRM system, many companies are using Sage ACT! in more of a CRM capacity, with many corporate users sharing the same database. Sage SalesLogix and Sage CRM, Sage’s true CRM products, do not represent as much revenue to Sage as does Sage ACT! or does Sage’s overall suite of ERP products.

SAP – is known as a leader in ERP software. SAP ERP is one of five applications in SAP’s Business Suite. The other four applications are CRM, Product Lifecycle Management (PLM), Supply Chain Management (SCM), and Supplier Relationship Management (SRM). On their 2011 Earnings call in January, SAP noted that HANA, the company’s in-memory database and application platform (a non-CRM product), is the fastest-growing product in SAP’s history.

FrontRange Solutions – The contact manager GoldMine is one of FrontRange solution’s offerings. As with Sage ACT!, GoldMine is often used in a CRM capacity. In addition to GoldMine, FrontRange publishes the following product lines: SaaS², HEAT Help Desk, ITSM (IT Service Management), Service Catalog, IT Asset Management, FrontRange Desktop and Server Management, FrontRange Customer Service and Contact Center.

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