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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (11721)	12/1/1999 11:13:00 PM
From: Mike Buckley	Respond to of 54805

Who ya gonna believe? On 6/1/99, Frost and Sullivan issued a report saying that the total SFA market is in the "mid to late growth stages" and that it expects the market to grow to $1.8 billion in 2005. The report below from IDC, dated exactly five months later, says the market is in the "early majority stage" and that it expects the market to be a whopping $5 billion in 2003. That's not a typo, folks. IDC is saying it will be almost three times as large two years earlier. Unbelievably different expectations. For the press release from IDC, see below. --Mike Buckley ====================== FRAMINGHAM, Mass., Dec. 1 /PRNewswire/ -- Fueled by the Internet and the increasing popularity of customer relationship management, sales force automation (SFA) software revenues are about to take a quantum jump. From less than $888 million in 1998, they will soar to almost $5 billion by 2003, according to a recently published International Data Corporation (IDC) report. "The Internet's potential to change much of the way buying and selling is done cannot be overstated," said Judy Hodges, director for IDC's Customer Relationship Management research program. "Universal browser access to global servers and databases and other developments have led to new and revolutionary forms of ecommerce and many diverse innovations affecting sales force automation and customer relationship management." According to IDC, the market for SFA software is currently in the early majority stage. Companies are looking for ways to retain customers and increase revenues, and SFA software can help them meet their goals. "Businesses of all sizes are realizing the benefits of automating their core processes, and highly motivated buyers are fueling the demand for systems that manage the entire scope of the sales process," Hodges said. "With the increased ability to collaborate and share information globally, quickly uncover new leads with integrated database marketing, and standardize the selling process and manage the selling cycle, salespeople are better able to manage their activities and spend more time on actual selling." The United States leads other regions in the deployment of SFA software, accounting for more than 71% of revenues in 1998. Throughout IDC's forecast, however, U.S. revenues will increase at the slowest rate, and in 2003, its share will have fallen to 67%. IDC believes Siebel Systems is very well positioned to extend its leadership in the SFA software market. Currently, it is the only vendor to have a double-digit market share, and it recently expanded its product line so that it now has offerings appealing to companies of all sizes, across many vertical industries. IDC's recent report, Sales Force Automation Software: 1999 Worldwide Markets and Trends (IDC #B20345), sizes the market through 2003. Forecasts are segmented by market, region, and operating environment. A thorough review of the 1998 market is provided, including vendor market shares. Key market drivers and major trends are discussed for the overall market as well as for each segment. To order a copy of the report, contact Cheryl Toffel at 1-800-343-4952, ext. 4389 or at ctoffel@idc.com. For information on IDC's Customer Relationship Management research program, contact Pat Duhl at 949-442-4038.