To whom it is profitable SaaS of CRM?
Market development of CRM systems "on a subscription" (SaaS) is an obvious trend of global market of customer relationship management systems. Activity in this field of specialized players like Salesforce.com and popularity of the solutions proposed by them forced to implement also megavendors of SaaS solutions in the product lines.
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By estimates of Gartner company, in 2011 around the world proceeds from sales of SaaS of solutions were $12.1 billion that for 20.7% it is more than 2010, and by 2015, according to forecasts, it will reach already $21.3 billion. At the same time the largest segment of the world market SaaS is the SaaS segment of CRM: in 2011 its volume was $3.8 billion or about 32% of all SaaS of the market, and by 2015 this indicator will be $5.7 billion.
The volume of the world market of SaaS of solutions on segments, the forecast till 2015, $ one million
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | CAGR, 2010-2015,% | |
CRM system | 1,231 | 1872 | 2,273 | 3,174 | 3,760 | 4341 | 4,801 | 5249 | 5,719 | 12.5 |
Corporate software | 5,306 | 6,794 | 7921 | 10,002 | 12,073 | 14,286 | 16,682 | 18,896 | 21,281 | 16.3 |
Gartner, 2011
At the same time now in the world of 34% of sales of CRM it is the share of cloud computing, in Russia — about 10%. At the global level distribution by the different directions looks as follows: in the field of automation of sales more than 50% of CRM systems are cloud, in the field of service of customers — 20%, marketing — 20% and e-commerce — 30%. And though now cloud computing occupies only about one third of the market of CRM, on growth rate this segment three times advances the sector of the traditional systems. According to the forecast of Gartner, by 2020th year more than a half of the market of CRM will fall on cloud computing.
SaaS of the solution
CRM on-demand (or CRM "on a request or SaaS of CRM) is such type of systems when all opportunities and tools are provided by third-party provider of services. In such cases transition to use of a system is considerably simplified as this model does not provide any installation of the equipment and even the software. Pricing obychnostroitsya on payments of a monthly subscription fee that does expenses rather predictable. This model is ideal for the companies which aim to display all non-core activities out of limits of the organization.
About 80% of the companies which use CRM "on demand" try to obtain positive ROI. Therefore use of this type of systems is ideal for the small companies where the high cost of costs for traditional implementation of CRM can become a basic barrier before use of a system. However, this approach has minuses: for example, the hosting provider will not be able deeply to integrate the solution with business and other systems of the client though such integration and is easier. But process of updating of a system is much easier in comparison with traditional model.
On Premise CRM
On-premise CRM assume use of a combination of the equipment and software which work in a sheaf and are installed on the side of the enterprise. Normally it is the software solutions set on servers of the enterprise and closely integrated with other business systems which are used them. Big advantage of such solutions is that in this case the company can control completely independently a system and data in it, but same imposes on it and the corresponding responsibility.
Theoretically once the installed system of this kind should not require additional investments, but, as well as in most cases, the complexity here defined is represented by licensing terms and also need of regular assignments for support and updates. Support can be very expensive. But there are also notable pluses: high performance of such systems and also is more than opportunities for their customization and integration. Besides, use of SaaS of solutions can be forbidden in some industries by the regulating legislation (an example - health care).
SaaS vs On Premise
Type comparison of CRM systems
Type comparison of the CRM system depending on the size of the company
Apparently from the table is higher, for the companies numbering up to 50 staff of SaaS CRM can become an optimal solution, for the companies with the state from 51 to 300 persons – the benefit of this or that model is calculated in each case separately. As for the companies with the state more than 300 employees, for them with high probability the traditional model will be more profitable.
The cost of SaaS of solutions usually consists of two parts: directly a payment for use which can be charged as at the rate of $200 a month or several $ one thousand one-time and also a subscription fee for each user of a system which usually makes from $15 to $100 depending on a system. As for On-Premise of systems, implementation cost will consist of the number of the purchased and installed equipment and software, typical purchase costs and installation of traditional CRM are made from several to $ tens of thousands.