Salesforce.com, Inc. (CRM) To Retain Its Leadership Position In $127.5 Billion Cloud-Based CRM Market Through 2018
Salesforce.com, Inc. (NYSE:CRM)’s progress in CRM is going strong and the company is expected to maintain its lead in the cloud-based CRM category through 2018. At least 62% of CRM software will be delivered through the cloud by 2018 with the overall cloud computing market reaching $127.5 billion by that year. Enterprise mobile is also growing fast, presenting more growth opportunities.
On the enterprise segment, spending on SaaS applications is almost hitting 30% of total enterprise spending on applications.
The cloud computing market has been noted to be growing at a compound annual growth rate (CAGR) of 22.8% in the period between 2014 and 2018. Spending on enterprise applications is growing at CAGR of 17.6% focusing on the period between 2013 and 2018.
According to the State of Cloud Report 2015, by Byron Deeters, cloud adoption is still in the infancy stages. Cloud adoption is expected to grow as more people learn about cloud computing. Back in 2014, the cloud computing market was worth just about $56.6 billion with most of the cloud spending in the year going to private clouds, at $26 billion.
On-premise CRM declining
While SaaS spending is projected to grow at a CAGR of 17.6% by 2018 from 2013, spending on on-premise software is expected to decline at a CAGR of 2.8% over the same period.
With cloud-based CRM growing at a CAGR of 19.6% to 2018, Salesforce.com, Inc. (NYSE:CRM) is expected to continue dominating the scene.
Mobility implication on enterprise cloud
Mobility has been found to have a profound impact on the growth of cloud computing and enterprise mobile has been shown to have greater monetization potential than consumer mobile. Most of the Internet usage is currently happening on mobile and as many as 80% of workers work away from their desks. The global penetration of mobile is currently 73%.
The growing interest in cloud-based CRM and growing mobile penetration in enterprise bode well for Salesforce.com, Inc. (NYSE:CRM).
More details about this projections can be found in a post by Alex Conrad on Forbes.
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