CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 3, 2005--The customer relationship management (CRM) market is rife with dissatisfied customers who are betting millions of dollars on products and services that do not fully satisfy their needs. Approximately $13 billion will be spent on CRM initiatives worldwide in 2005. Forrester Research, Inc. (Nasdaq: FORR) has released a new Forrester Wave(TM) that evaluates and ranks four major CRM players -- Amdocs, Oracle, SAP, and Siebel Systems -- to help companies make smart CRM investment decisions.

"Selection of a CRM vendor is a marriage, not a date," says William Band, a consulting analyst with Forrester Research. "Enterprise buyers must think carefully about the vendor partner they choose and understand the long-term commitment of these decisions. Over the next year, companies will spend an estimated $3.2 billion on CRM license costs alone. In addition, they will incur costs involving hardware purchases, software integration, maintenance, and the administrative expenses for managing new IT assets. Big money is at risk."

The study finds that buyers are dissatisfied with CRM investments on multiple levels and are demanding easier integration, faster return on investments, and better support from vendors. A survey of 94 business and IT executives found that:

    --  Only 29 percent of executives surveyed are satisfied with how
        easily CRM applications integrate with existing data
        applications and sources.

    --  Just 34 percent are happy with how easy it is to work with CRM
        software vendors after they have purchased applications and
        services.

    --  Less than 50 percent of buyers are fully satisfied that the
        business benefits achieved meet their expectations.

While there are several choices of CRM vendors, ranging from licensed vendors serving enterprises to hosted CRM vendors using a software-as-a-service model, Forrester choose to evaluate enterprise CRM suites delivered through an on-premise licensed arrangement. The report evaluates the four leading vendors based on 177 criteria grouped in three categories -- current offering, product strategy, and market presence. Forrester's findings show that while all four vendors' CRM suites offer advantages, companies must choose the best fit for their specific needs. Overall, Forrester found that:

    --  Siebel continues to lead the pack. Siebel continues to offer
        the most comprehensive solution-set for enterprise-class
        organizations, with the largest array of front-office
        solutions tailored to specific industry challenges and
        opportunities.

    --  SAP has momentum and is gaining ground. SAP, through mySAP
        CRM, has emerged with increasing momentum. The company is
        investing heavily to fill out its product suite and offers
        buyers end-to-end business process solutions.

    --  Oracle is growing to overtake the leader. Oracle's recent
        acquisition of PeopleSoft gives the combined entity full
        coverage of all major CRM functionalities and a larger, more
        industry-balanced customer base on which to build.

    --  Amdocs is a good choice in special circumstances. Amdocs
        offers a flexible application with deep customer service
        functionality, scalability, and profound knowledge of the
        communications services providers and high-tech industries.
        The company offers an end-to-end solution by integrating
        customer-facing relationship management with the important
        customer billing process.

The CRM Forrester Wave also includes six specific recommendations for buyers to use when shopping for a CRM suite. The full report is available to Forrester WholeView 2(TM) clients and can be found at www.forrester.com.

The Forrester Wave Methodology

The Forrester Wave methodology is open, rigorous, and unbiased. Forrester starts with an open criteria review process, verifies findings against enterprise customer interviews, and checks facts with vendors. This research is performed without sponsorship to help user companies make better vendor selections. Forrester does not charge vendors to participate in a Forrester Wave.

About Forrester

Forrester Research (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice about technology's impact on business and consumers. For 22 years, Forrester has been a thought leader and trusted advisor, helping global clients lead in their markets through its research, consulting, events, and peer-to-peer executive programs. For more information, visit www.forrester.com.

    CONTACT: Forrester Research, Inc.
             Rebecca Lavery, 617-613-5758
             press@forrester.com

    SOURCE: Forrester Research