SaaS, emerging markets drive CRM sales

Sales of customer relationship management software rose dramatically in 2007, driven in part by the take-up of Software as a Service (SaaS) offerings, according to analyst group Gartner.

Sales of CRM software totaled Pounds 4.1 billion (US$8.1 billion) in 2007, Gartner said in a new report.

That represents a 23% increase from sales in 2006.

Growing Markets

"The market was driven by greater contributions from emerging regions, continued rapid adoption of SaaS, and a continued focus on investments that promote customer retention and enhance the customer experience," noted Sharon Mertz, Gartner research director, in a statement.

Emerging markets accounted for 15% of CRM sales in 2007, while 53% of sales were concentrated in the US and 32% in western Europe.

Sales of CRM software increased by more than 40% last year in the Middle East, Africa and Eastern Europe.

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