In 2018, the top 10 SPM software vendors accounted for nearly 82.1% of the global SPM applications market which grew 8.4% to approach nearly $1079 million in license, maintenance and subscription revenues.
Last year SAP led the pack with a 22.5% market share riding on a 4% jump in license, maintenance and subscription revenues. Oracle was #2 followed by Xactly, Microsoft and PROS Holdings.
We ask the simple question: Who’s buying SPM applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Sales Performance Management applications market size is expected to reach $1345 million by 2023, compared with $1079 millions in 2018 at a compound annual growth rate of 4.5%.
| Exhibit 2: Worldwide SPM Software Market 2018-2023 Forecast, $M | |||
|---|---|---|---|
| Year | 2018 | 2023 | 2018-2023 CAGR, % |
| Total | 1079 | 1345 | 4.5% |
Source: Apps Run The World, December 2019
Top 10 SPM Software Vendors
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.
Here are the rankings of the top 10 Sales Performance Management software vendors in 2018 and their market shares.
| Rank | Vendor | 2017 Sales Performance Management Apps Revenues, $M | 2018 Sales Performance Management Apps Revenues, $M | YoY Growth | 2018 Sales Performance Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | 3,9% | Subscribe | SAP’s Acquisition of CallidusCloud has vaulted SAP to become the No. 1 SPM vendor with more incremental gains after its purchase of Qualtrics for Experience Management along with Hybris as the CX anchor for SAP Sales Cloud. |
| 2 | Oracle | Subscribe | Subscribe | 4,5% | Subscribe | Oracle Sales Cloud is adding new features like Ability to Deploy Credit Rules in Incremental Mode for incentive compensation and Create and Migrate Custom Roles when doing configuration, pricing and quoting. |
| 3 | Xactly | Subscribe | Subscribe | 10,3% | Subscribe | Xactly Acquired OpsPanda, an AI-based sales resource and capacity planning application, and Obero, another SPM vendor that specializes in ASC 606 / IFRS 15 compliance. |
| 4 | Microsoft | Subscribe | Subscribe | 15,5% | Subscribe | Microsoft Dynamics 365 for Sales is a very capable and feature-rich solution in its own right, but Microsoft brings more to the table. The integration of LinkedIn, Office, and Azure machine learning capabilities are giving Microsoft interesting differentiators in the performance management space. |
| 5 | PROS Holdings | Subscribe | Subscribe | 23,1% | Subscribe | PROS unveiled PROS Smart CPQ now with support for sales agreement workflows |
| 6 | Salesforce | Subscribe | Subscribe | 24,5% | Subscribe | Along with its rapid-fire acquisitions of Tableau, Mulesoft and ClickSoftware over the past year, Salesforce has strengthened its core CRM offerings. |
| 7 | Vendavo | Subscribe | Subscribe | 12,5% | Subscribe | Vendavo focuses on CPQ as well as price optimization as it aims to expand with new offices in Germany. In June 2018, Vendavo acquired Swedish SaaS pricing software provider Navetti AB. |
| 8 | Optymyze | Subscribe | Subscribe | 20,0% | Subscribe | Optymyze has completed over 1,000 engagements in SPM with help from over 250 experts who specialize in sales operations to drive better SPM results for clients such as Boehringer Ingelheim, KForce, Kowa, McKesson and Office Depot. |
| 9 | Apttus | Subscribe | Subscribe | 27,8% | Subscribe | Following sale to Thoma Bravo, Apttus has installed a new management team led by new CEO Frank Holland, formerly with Microsoft Dynamics CRM and ERP operations. |
| 10 | IBM | Subscribe | Subscribe | 0,0% | Subscribe | Despite its recent spinoffs of products like Unica, SPM remains one of the core apps that IBM is investing in with the goal of integrating risk management, advanced analytics into incentive and sales compensation. |
| Subtotal | Subscribe | Subscribe | 10,8% | Subscribe | ||
| Other | Subscribe | Subscribe | -1,0% | Subscribe | ||
| Total | Subscribe | Subscribe | 8,4% | Subscribe |
Source: Apps Run The World, December 2019
Other SPM software providers included in the report are: Anaplan, beqom, CDK Global, Iconixx, Incentives Solutions, InsightSquared, Nice Systems, QuickBase, Performio, Varicent, Verint Systems Inc., Zuora, and others.
Custom data cuts related to the SPM Applications market are available:
- Top 20+ SPM Applications Vendors and Market Forecast 2017-2022
- 2018 SPM Applications Market By Industry (21 Verticals)
- 2018 SPM Applications Market By Functional Market (16 Markets)
- 2018 SPM Applications Market By Country (USA + 45 countries)
- 2018 SPM Applications Market By Region (Americas, EMEA, APAC)
- 2018 SPM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2018 SPM Applications Market By Customer Size (revenue, employee count, asset)
- 2018 SPM Applications Market By Channel (Direct vs Direct)
- 2018 SPM Applications Market By Product
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.
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 systems 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.
| Customer | Industry | Empl. | Revenue | Country | Vendor | New Product |
| First Citizens Bank | Banking and Financial Services | 4912 | $1.38B | United States | Optymyze | Optymyze SPM Cloud |
| Splunk | Retail | 3200 | $1.27B | United States | SAP | SAP Sales Cloud (ex CallidusCloud) |
| Two Degrees Mobile | Consumer Packaged Goods | 1200 | $100.0M | New Zealand | SAP | SAP Sales Cloud (ex CallidusCloud) |
| Wipro | Professional Services | 172912 | $7.74B | India | SAP | SAP Financial Closing cockpit |
| Addison Group’ | Automotive | 870 | $310.0M | United States | Xactly | Xactly Incent Enterprise |
| Cox Automotive | Government | 19500 | $7.00B | United States | Xactly | Xactly Connect |
| ICAEW | Professional Services | 737 | $390.0M | United Kingdom | Xactly | Xactly Incent Enterprise |
| ITRS Group | Professional Services | 180 | $20.0M | United Kingdom | Xactly | Xactly Incent Enterprise |
| Proofpoint, Inc | Professional Services | 2047 | $612.0M | United States | Xactly | Xactly Incent Enterprise |
| Taulia Inc | Professional Services | 250 | $20.0M | United States | Xactly | Xactly Incent Enterprise |
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 2015-2018 product revenues.
Their 2018 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.
