Page 20 - CSAM2 - Successful Sales Engagement for Cloud Services

Supporting Student Notes:

• Customer relationship management (CRM) continues to be the largest market for SaaS. SaaS revenue within the
CRM market is forecast to reach $3.8 billion in 2011, up from $3.2 billion in 2010. Gartner expects SaaS to
represent nearly 32 percent of the CRM market's total software revenue in 2011.

• "The market landscape for on-demand CRM continues to evolve and mature as the availability and use of SaaS
solutions become more pervasive," Mr. Eid said. "Greater market competition and increased focus on megavendors
reinforce the legitimacy of on-demand solutions, mitigating initial objections about security and availability for
many, as acceptance of SaaS as a viable model for enterprise computing services grows.“

• SaaS revenue within the content, communications and collaboration (CCC) market is on pace to surpass $3.3 billion
in 2011, up from $2.8 billion in 2010. The CCC market continues to show the widest disparity of SaaS revenue
generation, with SaaS representing just 5 percent of enterprise content management (ECM) in 2010 but
approximately 83 percent of Web conferencing.

• The proportion of enterprise resource planning (ERP) revenue attributed to SaaS overall is still in the single digits,
at approximately 7 percent of the overall ERP market. ERP SaaS offerings contributed approximately $1.5 billion to
the SaaS market in 2010, and by year-end 2011, Gartner expects this to increase to $1.7 billion.