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say Forrester researchers, with SaaS
representing a third to two-fifths of
total revenues in 2016.
Financial management systems, PLM,
call center/contact center, manufactur-
ing management, and electronic design
automation, on the other hand, are still
predominantly single instance
licensed or hosted applications,
reported Forrester. “These cat-
egories have lower adoption of
SaaS because of more limited
buyer choices, but also because
these systems tend to be heav-
ily customized, making SaaS
deployments more challenging,”
says the research firm.
Top Category
Breakdowns
The rock star of business
process software, CRM applica-
tions, which span the customer
life cycle through marketing,
sales and customer service, is
both the largest and fastest-
growing segment within the cat-
egory. Forrester estimates robust growth
rates of 20 percent for 2016, followed by
13 percent in 2017, from approximately
$24 billion in 2015. Salesforce is the
dominant vendor in this category, with
projected 2015 total revenues of $6.65
billion and revenue growth of 24 percent.
“The core CRM app of Salesforce
automation is widely adopted, so
growth will increasingly come from relat-
ed apps such as marketing automation
and customer services and support,”
says Forrester researchers.
The second largest process applica-
tion category, the finance systems
software market represented about
$23 billion in sales in 2015, with
growth expected of 12 percent
in 2016 and 5 percent in 2017,
driven largely by usability and ob-
solescence challenges in existing
on-premises finance systems and
an increasing appetite for SaaS.
In addition to core account-
ing capabilities at the heart of
ERP systems, such as NetSuite,
Oracle and SAP, financial man-
agement software also includes
adjacent capabilities that are
moving to SaaS even more
quickly than the core, says For-
rester. These include revenue-
focused systems such as billing,
receivables, tax and collections;
rior Year:
2016 2017 2018
Source: Arketi Group
Perceived risk of network-connected
endpoints in 2016
(Percentage of IT pros who selected “moderate” or “high” risk)
20%
0%
Source: Forrester Research
Software-as-a-service (SaaS) subscription as
a percentage of total product revenues 2016
Source: Forrester Research
Software-as-service
(SaaS) subscription revenues
2011 2012 2013 2014 2015* 2016* 2017*2018* 2019* 2020*
Customer relationship management
Commerce servers
ePurchasing and business networks
Human resources management
Risk management and payment
Supply chain management
Governance, risk, and compliance
Financial management systems
Product life-cycle management
Call center/contact center systems
Manufacturing resource management
Electronic design automation
Industry analysts
Internal colleagues
Vendor face-to-face meeting
Vendor website
Case studies or
customer testimonials
Vendor comparison charts
Industry/professional online
communities or forums
Live or in-person demo
Web searches
Tradeshows and
conferences
Total, business process applications
56%
55%
53%
41%
38%
30%
23%
22%
11%
10%
7%
3%
34%
4.7%
3.6%
%
42%
40%
40%
40%
36%
32%
31%
31%
29%
28%
DCIM Adoption Plans
46
CHANNEL
VISION
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July - August 2016