Gartner Survey Compares CRM and ERP Software Expenditures and Finds CRM Gaining

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If you are wondering whether you should deploy your CRM or ERP system onsite or in the cloud, you are not alone.  A recent press release from from Gartner Inc captures the true magnitude of the expense that CRM and ERP systems can run for companies.

The release indicates that enterprise software revenue will reach $120.4 billion. That is a 4.5 percent increase from the $115.2 billion in  2011. And with more than $13 billion in revenue expected in 2012, CRM expenditure only trails behind ERP ($24.9 billion), and office suites ($16.5 billion).

However, with the economy is such a state of uncertainty, many companies are looking to avoid large capital expenditures in 2012. Instead they are finding more budget-friendly options, namely cloud computing. By paying on a subscription basis, companies can focus more on the business itself rather than maintaining software for it.  No more worrying about power outages, or relying on an overworked in-house IT person to update and upgrade the system, apply fixes or patches, or ensure backups are being made.

Microsoft has recognized this fluctuating market and continues to provide multiple options for CRM and ERP, including on-premise, partner-hosted, and cloud-hosted deployments. Microsoft has introduced Microsoft Dynamics CRM to the cloud in the form of CRM Online and has integrated it with Microsoft Office 365, which also provides an office suite and SharePoint collaboration software.

Furthermore, Microsoft has positioned Dynamics CRM to take the lead in the CRM market by offering businesses industry-specific features and social media tools to stay better informed and connected with their customers.

"Spending in 2012 is anticipated to focus on industry-specific applications; upgrades to established, mission-critical software; integrating and securing established systems and infrastructure; and software as a service (SaaS) deployments representing extensions to, or replacement of, existing applications and new solutions," said Tom Eid, vice president of Gartner.

Learn more about CRM in the cloud, contact us today.

By Donna Krizik / Crestwood Associates LLC, an Illinois/Indiana Dynamics CRM Partner


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