Web Hosting On-Demand CRM Market Report, Released by Tier1 Research

New York, New York - (The Hosting News) - April 17, 2008 - A new report released by New York-based independent research firm, Tier1 Research (T1R), has analyzed the financial and industry implications of developments affecting public and private companies within the hosting, IT, communications and Internet sectors.

The On-Demand CRM Marketplace report provides analysis and perspective on key technology trends and developments in the SaaS market. The report found that since software as a service(SaaS) can be a cost-effective delivery method for software functionality, it is rapidly gaining acceptance.

Wesley Kennedy, Senior Analyst at T1R and author of the report explained, ''The global growth story for the on-demand CRM market is clearly an exciting one. And while the rising tide will lift all boats, it is evident that some boats will rise higher than others. Those companies that are levered to the fastest-growing sections of the market will clearly be the greatest beneficiaries.''

Nowhere has this adoption been more evident than in customer relationship management (CRM) - a front-end customerfacing platform consisting of sales automation, marketing automation and customer service. While the on-premise enterprise CRM market has reached relative maturity and is expected to experience annualized growth of 6.2% through 2010, the on-demand CRM market is expected to grow at a compound annual rate of 41.0% through 2010.

T1R analysts find that growth from European enterprises will be driven by the demand for point software applications as opposed to pplications that can be integrated or are already integrated with other applications. Meanwhile, unlike the U.S. and Europe, many larger enterprises in Asia have not yet adopted a CRM platform (onpremise or on-demand). The on-demand value proposition will be much more compelling for larger organizations in Asia. As a result, T1R analysts expect larger enterprises to lead the charge in terms of on-demand adoption, with
smaller companies following suit 12-18 months later.

Mr. Kennedy continued, ''The market has become so competitive and the established vendors have such a head start across all enterprise sizes and geographic locations that a new entrant to the on-demand CRM world would not be able to survive.''

The 37-page report, titled 'On-Demand CRM Marketplace,' analyzes where growth for the on-demand CRM market is coming from and which vendors are best positioned to capitalize on that growth. It also looks at the growth prospects for respective on-demand CRM vendors and examines whether the on-demand CRM opportunity for each vendor is appropriately valued.

T1R, a division of The 451 Group, is headquartered in New York. The company analyzes the financial and industry implications of developments affecting public and private companies within the IT, communications and Internet sectors - with a particular focus on hosting, Internet infrastructure and IT services. Clients include institutional investors and technology vendors, along with end users and venture capitalists. The clients leverage T1R's analytical insight for idea generation, trend identification, due diligence and grounded opinions, as well as metrics and forecasts on companies and industries covered.

To learn more about T1R, please visit: www.t1r.com.

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