In 2016, the top 10 Sales Performance Management (SPM) software vendors accounted for nearly 78% of the global Sales Performance Management (SPM) applications market which grew 5% to approach nearly $821 million in license, maintenance and subscription revenues.
Last year CallidusCloud led the pack with a 20% market share and $165 million in Sales Performance Management product revenues, riding on a 25% jump in license, maintenance and subscription revenues. In 2016, Oracle was No. 2, followed by IBM, Xactly and SAP. In 2015, the standings of the top five were the same with CallidusCloud being No. 1, followed by Oracle, IBM, Xactly and SAP.
Through our forecast period, the Sales Performance Management applications market is expected to reach $1031 millions by 2021, compared with $820 millions in 2016 at a compound annual growth rate of 4.7%.
| Exhibit 2: Worldwide SPM Software Market 2016-2021 Forecast, $M | |||
|---|---|---|---|
| Year | 2016 | 2021 | 2016-2021 CAGR, % |
| Total | 821 | 1031 | 4.7% |
Source: Apps Run The World, December 2017
Sales Performance Management (SPM) Market Definitions And Forecast Assumptions
Sales Performance Management tracks and automates different incentive compensation programs for salespeople as well as other functions specific to inside, outbound and channel sales activities including territory and quota management, account segmentation and scoring, and deal and quote management. SPM applications revenues represent a major contributor to the Human Capital Management market as part of our market sizing exercise.
Incentive compensation gains traction across services sectors with Cloud startups exploiting flexible pricing to gain an upper hand.
Top 10 Sales Performance Management (SPM) Software Vendors
Here are the rankings of the top 10 Sales Performance Management software vendors in 2016 and their market shares.
| Rank | Vendor | 2015 Sales Performance Management Apps Revenues, $M | 2016 Sales Performance Management Apps Revenues, $M | 2016 Sales Performance Management Apps YoY Growth, % | 2016 Sales Performance Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | CallidusCloud | Subscribe | Subscribe | Subscribe | Subscribe | Extending its dominance in SPM to cover Learning and other functions like configure, pricing and quoting. |
| 2 | Oracle | Subscribe | Subscribe | Subscribe | Subscribe | Part of its incentive Management applications from Siebel and other on-premise and Cloud applications. |
| 3 | IBM | Subscribe | Subscribe | Subscribe | Subscribe | A combination of products from Varicent acquisition and other spend analytics products from Cognos. |
| 4 | Xactly | Subscribe | Subscribe | Subscribe | Subscribe | Xactly was taken private by Vista Equity Partners in May 2017. |
| 5 | SAP | Subscribe | Subscribe | Subscribe | Subscribe | Part of its CRM suite for incentive and commission management. |
| 6 | Salesforce | Subscribe | Subscribe | Subscribe | Subscribe | Positioning its SPM offerings for different verticals including insurance. |
| 7 | Globoforce | Subscribe | Subscribe | Subscribe | Subscribe | Packaging SPM as an enabler for boosting workforce performance. |
| 8 | Optymyze | Subscribe | Subscribe | Subscribe | Subscribe | Saw robust growth in 2016 after its large-scale expansion into Asia Pacific. |
| 9 | CDK Global | Subscribe | Subscribe | Subscribe | Subscribe | Former ADP Dealer has become a major software vendor for car retailing with popular SPM solutions. |
| 10 | Nice Systems | Subscribe | Subscribe | Subscribe | Subscribe | NICE offers SPM as part of its customer service and workforce management applications suite. |
| Subtotal | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Other | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Total | 782 | 821 | 5.0% | 100.0% |
Source: Apps Run The World, June 2016
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like eCommerce, Enterprise Performance Management, Sales Performance Management and Treasury and Risk, where first movers remain less established than those that for decades have been entrenched in functional areas like ERP, CRM and PLM.
Exhibit 4: Worldwide Enterprise Applications Market Forecast 2016-2021, By Functional Market, $M
Sales Performance Management (SPM) Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Sales Performance Management applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest SPM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
Further Readings
An expanded version of this report covers additional Sales Performance Management Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space.
We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2016 product revenues.
Their 2016 results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
