In 2017, the top 10 Sales Performance Management (SPM) software vendors accounted for nearly 78.5% of the global Sales Performance Management (SPM) applications market which grew 3.4% to approach nearly $849 million in license, maintenance and subscription revenues.
Last year CallidusCloud led the pack with a 23.3% market share riding on a 20% jump in license, maintenance and subscription revenues. Oracle was #2 followed by Xactly, SAP and Vendavo.
Through our forecast period, the Sales Performance Management applications market is expected to reach $1022 million by 2021, compared with $849 millions in 2017 at a compound annual growth rate of 3.8%.
| Exhibit 2: Worldwide SPM Software Market 2017-2022 Forecast, $M | |||
|---|---|---|---|
| Year | 2017 | 2022 | 2017-2022 CAGR, % |
| Total | 849 | 1022 | 3.8% |
Source: Apps Run The World, December 2018
Top 10 Sales Performance Management (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 2017 and their market shares.
| Rank | Vendor | 2015 Sales Performance Management Apps Revenues, $M | 2016 Sales Performance Management Apps Revenues, $M | YoY Growth | 2016 Sales Performance Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | CallidusCloud | Subscribe | Subscribe | 20.1% | Subscribe | CallidusCloud was acquired by SAP in April 2018, followed by SAP’s biggest purchase of Qualtrics for $8B. Both Callidus Cloud and Qualtrics are now part of SAP SalesCloud. |
| 2 | Oracle | Subscribe | Subscribe | 3.4% | 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 | 18.8% | Subscribe | 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 | SAP | Subscribe | Subscribe | 6.4% | Subscribe | 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. |
| 5 | Vendavo | Subscribe | Subscribe | 7.1% | Subscribe | Vendavo focuses on CPQ as well as price optimization as it aims to expand with new offices in Germany. |
| 6 | Optymyze | Subscribe | Subscribe | 14.3% | 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. |
| 7 | IBM | Subscribe | Subscribe | -4.7% | 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. |
| 8 | Salesforce | Subscribe | Subscribe | 23.2% | Subscribe | Salesforce’s SPM offerings revolve around Steelbrick’s CPQ apps. The recent acquisition of Mulesoft will allow for better integration into other CPQ and SPM apps for enhanced visibility into one’s sales operations. |
| 9 | Apttus | Subscribe | Subscribe | 16.7% | 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 | Nice Systems | Subscribe | Subscribe | 76.8% | Subscribe | Nice offers SPM as part of its CRM solutions to drive real-time sales performance, payment accuracy and better corporate planning. SPM customers include Coca Cola, Royal Bank of Canada and Subaru. |
| Subtotal | Subscribe | Subscribe | 13.6% | Subscribe | ||
| Other | Subscribe | Subscribe | -22.0% | Subscribe | ||
| Total | Subscribe | Subscribe | 3.4% | Subscribe |
Source: Apps Run The World, June 2018
Custom data cuts related to the SPM Applications market are available:
- Top 20+ SPM Applications Vendors and Market Forecast 2017-2022
- 2017 SPM Applications Market By Industry (21 Verticals)
- 2017 SPM Applications Market By Functional Market (16 Markets)
- 2017 SPM Applications Market By Country (USA + 45 countries)
- 2017 SPM Applications Market By Region (Americas, EMEA, APAC)
- 2017 SPM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2017 SPM Applications Market By Customer Size (revenue, employee count, asset)
- 2017 SPM Applications Market By Channel (Direct vs Direct)
- 2017 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 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.
| 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 2015-2016 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.
