It’s Monday morning so we might as well get underway on a cheery note: the CRM market’s looking good according to the latest analysts report on the sector. This time it’s Datamonitor stepping up to the mark with the conclusion that the software automation market in particular will grow a compound annual growth rate of 14 per cent from $2.32 billion last year to $4.4 billion by 2006.
Some things will remain the same. For example, the main drivers for growth will continue to come from North America followed by Europe and then Asia-Pacific. But the kind of customers who are buying will differ. The big enterprise customers of the past are the ones most likely to have tied up their budgets in post September 11 rethinks, so vendors will have to pitch their wares lower down the economic food chain into the small and medium enterprise space.
To address this sector, vendors will have to turn to the channel, building partnerships with value-added resellers, systems integrators, consulting firms and even other software developers. Building relationships with software vendors that produce complementary solutions, such as an e-commerce platform, will lead to OEM, joint sales or marketing agreements that bode well for all parties.