IDC used market share positioning for CRM software vendors by using a vertical segmentation of 2005 revenue. According to the report, Siebel, whose revenue is presented separate from Oracle for comparison purposes, clearly dominates the market. The report also states that IDC expects the manufacturing, communications and media, and healthcare industries to show the strongest growth in CRM software over the next five years, with compound annual growth rates (CAGRs) of 8.1%, 8.0% and 7.2% respectively. IDC continues to report that firms that have penetrated into these industries will have the greatest future growth potential in CRM software.

"Siebel maintains the largest share of revenue in five of the eight vertical industries reported," said IDC Analyst Mary Wardley. "While Oracle and Siebel are presented separately in this study, the acquisition of Siebel by Oracle increases the company's relative strength in each of its first-place industries." 1

1 IDC "Americas Customer Relationship Management Software 2005 Vendor Shares: Top 10 Vendors by Vertical Market," by Noel Stevens and Mary Wardley, November 2006

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