Enterprises win as Cloud and on-site software vendors duke it out

The CRM market will see the biggest price declines in the next couple of years

More price cuts are expected this year because of fierce competition between Cloud and on-site software providers, and enterprises will be the beneficiaries.

In particular, in the customer relationship management market, a key Cloud battleground, seat prices for segments such as sales force automation are expected to decline in the next twelve months and by 25 percent through 2018, according to market research company, Gartner.

This will be caused by incumbent vendors heavily discounting their Cloud offerings to try and prevent their existing on-site customers from defecting to companies such as Salesforce.com and SugarCRM.

Enterprises will also benefit from increased price competition in other areas, such as database management system application infrastructure and middleware. However, the price competition in these sectors isn't quite as ferocious.

The cloud market is going through some interesting changes at the moment. Amazon Web Services, Google and Microsoft are locked in a price war over the cost of public Cloud services. At the same time, old-school vendors such as Hewlett-Packard and again Microsoft are increasingly pushing hybrid Clouds, which integrate public Clouds with software running in enterprise datacentres.

These developments won't just result in lower prices, but also better management tools and security, which are both needed.

Overall enterprise software spending is on pace to total $US335 billion this year, which would be a 5.5 per cent increase from 2014, according to Gartner.

Enterprises increasingly choosing cloud services over hosting software in their own datacentres have repercussions for other segments, as well. For example, server and storage sales won't grow as much as previously thought, Gartner said. On the other hand, spending on networking hardware is anticipated to grow faster.

Worldwide IT spending is expected to total $US3.8 trillion in 2015, a 2.4 per cent increase from last year, according to Gartner.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesGartner researchinvestments

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?