On-demand CRM market shares: Salesforce.com – 49.5%, RightNow – 13.5%

The appeal for on-demand customer relationship management (CRM) applications was strong in 2004, says IDC, generating approximately $300 mln dollars in revenue. IDC delivers the first vendor ranking for on-demand CRM applications providers which reveals a high revenue concentration among few vendors: the top five vendors accounted for 81.6% of the total market. Salesforce.com holds the leading position with 49.5% market share followed by RightNow Technologies in second with a market share of 13.5%. Surprises in the leadership table include Siebel Systems who entered the on-demand CRM applications market in January 2004, but still managed to score a fifth place ranking.