Sales of hosted customer relationship management systems grew by 105% during 2004, to $4.4 billion, according to a report from AMR Research. Hosted applications are those housed off-site, at service vendor locations, as opposed to those installed on the marketers’ premises.
The industry spent $400 million on these applications last year, up from $200 million a year earlier. That said, installed applications continue to dominate the market, generating $4 billion in sales during 2004. As a whole the CRM platform market grew by 10% during 2004.
“The hosted model has reinvigorated a market that failed to grow over the past several years,” said Rob Bois, senior research analyst at AMR Research in a statement. “The hosted category has changed the whole perception of customer management with faster implementations, and easy customization.
