SAP and Oracle dominate European CRM
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Both the giants lead in five vertical markets.
Two companies now dominate the market for customer relationship management (CRM) applications in Western Europe: SAP, the relative newcomer to the sector, and Oracle, through its acquisition of the historical leader in CRM, Siebel.
A report by industry analyst IDC shows that both now command a 12% share of the $2.5 billion CRM applications market, although the basis for that share is very different.
“SAP is doing well in industries and with companies which already have SAP ERP [enterprise resource planning] in place, whereas Siebel is strong in fields where it has developed very industry-specific offerings,” says IDC analyst Bo Lykkegaard.
That vertical focus is proving decisive. SAP’s position as the leading ERP vendor has given it strength in verticals where ERP and CRM systems are expected be closely integrated, such as manufacturing and utilities, and where physical products are shipped to customers.
“In finance, communications, retail and wholesale ERP is not so deeply embedded,” explains Lykkegaard. “In these markets where customers want heavily customised applications, Siebel is strong.”
Financial services is the biggest CRM vertical, he says, comprising some 30% of the pie, double that of the next biggest, telecoms.
Demand for such CRM software is concentrated in Europe’s five largest economies, with the UK, France, Germany, Italy and Spain accounting for 72% of total revenues.
