This IDC study provides the market sizing and vendor shares for the worldwide on-demand customer relationship management (CRM) applications software market in 2006 and forecast for the 2007–2011 time period. Market trends are provided, along with the future market outlook and guidance to CRM software vendors.

"The on-demand construct currently plays a significant role in the CRM applications market space. Although the delivery model has not become the dominant delivery mechanism, it is forecast to control nearly a quarter of the market by 2011." — Mary Wardley, research vice president, CRM Applications research.

"Those suppliers evaluating entering the on-demand CRM applications market or offering another application via the software-on-demand delivery model should focus on critical success factors when moving to an on-demand business/delivery model including making clear investments in R&D, sales, and marketing as well as aligning the internal organization to the subscription-based model. Software on demand entails a business transformation in which companies need to prepare," says Erin TenWolde, research manager, Software as a Service.