Gartner: Worldwide CRM revenue fell 25 percent in 2002

As takeover battles in the enterprise software space continue, revenue from new licenses in the important CRM (customer relationship management) software sector fell 24.7 percent in 2002, according to research from Gartner.

Revenue from new CRM licenses reached US$2.8 billion in 2002, down from $3.7 billion in 2001, which in turn was 6.4 percent lower than the $3.95 billion reached in 2000, according to Gartner.

Market inhibitors included the weak global economy, changes in end-user priorities and buying patterns, along with heavy competition among CRM vendors. North America was the hardest-hit region, with sales falling 27.6 percent in 2002 compared with 2001. Europe's CRM revenue fell 22.4 percent and Asia-Pacific's revenue fell 15.2 percent, Gartner said.

Siebel Systems remained the largest vendor in 2002 based on sales of new CRM licenses with a 24.9 percent market share, down from 28.5 percent in 2001. Second-placed SAP AG made up considerable ground, raising its market share from 10.9 percent in 2001 to 15.9 percent in 2002.

In the next two places, with equal market shares of 4.3 percent, are PeopleSoft and Oracle, currently locked in a takeover battle. PeopleSoft improved its market share from 3.8 percent in 2001 while Oracle's share fell from 5.5 percent in 2001.

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