Mobile CRM Apps To Grow 500% By 2014 As Market Turns With Decline In PC Shipments

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Gartner Research is reporting mobile CRM apps will grow 500 percent by 2014, another sign of a shifting market that has more to do with work getting done in the cloud more so than from a server behind the firewall.

This is buttressed by Gartner’s news that SaaS providers will represent more than 50 percent of profits in the CRM market by 2016 and the steep decline in PC shipments that Gartner  reported yesterday.

Gartner reports there are 200 apps now in app stores. By 2014, there will be 1,200. Mobile apps will come in a variety of flavors, attacking specific aspects of the CRM experience. Gartner, citing a CIO survey of more than 2,000 people, predicts that vendors will need to build mobile apps around their specific strengths.

Gartner also reported that Salesforce.com remains the No. 1 CRM vendor with 26 percent growth and $2.5 billion in revenue last year. In contrast, Gartner states SAP grew 0.1 percent year-on-year and totaled $2.3 billion in CRM revenue.

That is a huge difference but reflects why consulting companies like Deloitte are focusing more on Salesforce for CRM integrations. The money is in hooking up SaaS environments to old-school legacy systems.

The rise of mobile apps comes with a decline in PC shipments. According to Gartner, “worldwide PC shipments totaled 79.2 million units in the first quarter of 2013, an 11.2. percent decline from the first quarter of 2012. Global PC shipments went below 80 million units for the first time since the second quarter of 2009. All regions showed a decrease in shipments, with the Europe, Middle East and Africa (EMEA) region showing the steepest decline.”

Mobile’s rise also reflects the growing momentum for SaaS.

In 2012, almost 39 percent of the CRM software market revenue was delivered by SaaS. Gartner forecasts the market to increase 42 percent by the end of 2013. During 2016, more than 50 percent of the CRM software revenue will be delivered by SaaS.

But overall, the CRM market is not showing big growth, demonstrating how companies like Salesforce could be disrupted. The overall market is expected to grow just 9.7 percent in 2013.

That relatively small growth reflects how systems of record, such as CRM, are becoming less important in an app-centric economy. That app-centric focus is why Salesforce is making its own big push into mobile and conversely demonstrates why companies like Base CRMare growing so fast with their mobile-centric approach.