Salesforce passes SAP as top CRM dog

Salesforce surpassed SAP as the world's top CRM software vendor in 2012, thanks to a jump in revenue and boost in market share, according to analyst firm Gartner.

Salesforce posted CRM revenue of US$2.5 billion (A$2.4 billion) last year, compared to US$2 billion revenue in 2011. It now holds 14 percent market share, the analyst firm found. 

SAP came in second with US$2.3 billion in 2012 revenue and 12.9 percent market share, and Oracle third with 11 percent market share and US$2 billion in revenue.

Microsoft took out fourth spot with US$1.1 billion revenue and 6 percent market share, and IBM was fifth with US$649 million in revenue and 3.6 percent market share.

Over the last few years, SAP and Oracle have continued to experience growth in both market share and revenue but have been outpaced by Salesforce.

Specifically with market share, SAP held 14 percent in 2010, and 14.5 percent in 2011. Oracle had 12.6 percent of the market in 2010 and 11.6 percent in 2011, while Salesforce grew from 10.6 percent in 2010, to 12.5 percent in 2011, now holding 14 percent of the market.

Meanwhile, Australian CRM software revenue grew 11.6 percent in 2012 to US$593.5 million.

Total CRM software revenue across the globe grew to US$18 billion, a 12.5 percent rise from US$16 billion in 2011.

"Competition among CRM software vendors really heated up in 2012, as major players continued to vie for broader market penetration internationally and more widespread adoption within midsize to large enterprises," said Gartner vice president Joanne Correia in a statement. 

"Market growth in 2012 was three times the average for all enterprise software, highlighting how CRM is at the eye of the Nexus of Forces storm."