IDC Presents Top 10 Vendors by Vertical Market for CRM and Security Software Markets

FRAMINGHAM, MA – NOVEMBER 8, 2006 – In two new distinct research studies, IDC presents its analysis on the top 10 customer relationship management (CRM) vendors and the top 10 security software vendors in each of eight vertical markets for the Americas: communications and media, financial services, government, healthcare, manufacturing, retail/wholesale, utilities, and "other" industries (i.e., those that are not otherwise identified). Market share positioning for CRM software and security software vendors is identified using a vertical segmentation of 2005 revenue.

As reported in Americas Customer Relationship Management Software 2005 Vendor Shares: Top 10 Vendors by Vertical Market (IDC #203711) Siebel, whose revenue is presented separate from its new parent company Oracle for comparison purposes, clearly dominates the market. Siebel maintains the largest share of revenue in five of the eight vertical industries. The acquisition of Siebel by Oracle increases the company's relative strength in each of its first-place industries, but is not sufficient to overtake Amdocs in the communications and media space, Reynolds and Reynolds in the retail automotive sector, or the increasing presence of Saleforce.com in "other" industries. The "other" industries category contains a number of industries, including professional and consumer services, transportation, and resources, that have a significant share of small businesses that are particularly suited to on-demand applications.

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. Firms that have penetrated into these industries will have the greatest future growth potential in CRM software.

The security software market for each of the eight aggregate industries presented in IDC's study, Americas Security Software 2005 Vendor Shares: Top 10 Vendors by Vertical Market, (IDC #203710) is clearly dominated by four vendors: Symantec, McAfee, Cisco, and CA. Each of these vendors appears in the top 10 players within each of the eight vertical markets covered in this study. Among these firms, Symantec is the clear leader across industries, as it maintains the largest share of revenue in six of the eight vertical industries. Despite the dominance of this firm, the relative position of the remaining three firms within each industry provides useful insight into the competitive landscape of each industry.

IDC expects the healthcare industry to show the strongest growth in security software over the next five years, at a 16.7% CAGR. Firms that have penetrated into this industry will have the greatest future growth potential in security software.

For vendors looking to enter a new vertical market within either the CRM or security software markets, or maintain their existing positioning, IDC recommends that vendors do the following:

— Identify whether the core of their vertical strategy is to provide a range of vertically specific solutions that address needs specific to each industry or whether they plan to become a vertical expert within a select industry or set of industries.

— For vendors looking to capitalize on the projected growth of the healthcare industry, it is critical to recognize the high degree of in-house expertise necessary to tap this market.

— Vendors looking to target the financial services industry should consider the complexity of regulatory concerns, which parallels the complexity in the banking and security and investment services industries.

— In manufacturing, firms are dealing with ever increasing globalization. The ability to provide solutions that meet the needs of international organizations is necessary for success in this market.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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