Gartner: Quarter of CRM revenues now via on-demand delivery

Gartner predicts that the global software-as-a-service market will grow by 14.1% this year to $8.5 billion, with the delivery model taking a 26% share of total CRM sector revenues.

SaaS accounted for 24% of total CRM sales last year, with penetration levels ranging from between 11% and nearly 40% depending on the sub-segment.

Sharon Mertz, a research director at the firm, said: “The market landscape for on-demand CRM continues to evolve and mature as the availability and use of SaaS solutions becomes more pervasive. Greater market competition and increased focus by the mega-vendors reinforces the legitimacy of on-demand, mitigating initial objections about security and availability for many.”