SAP (NYSE:SAP) is one of the largest enterprise software providers worldwide and has significant market share in the ERP (enterprise resource planning) and CRM (customer relationship management) software segments where it competes with other giants like Microsoft (NASDAQ:MSFT), Oracle (NASDAQ:ORCL) and Salesforce.com (NYSE:CRM).

SAP recently launched a new microsite that may help it win new CRM customers by helping potential CRM users better understand that they can do with SAP’s service. While the site is useful, we think that it won’t have any meaningful impact on arresting the slight decline in SAP’s CRM market share that we forecast.

We currently have a $62 Trefis price estimate for SAP, which implies a 15% upside to the current stock price.

New SAP Microsite to Attract Customers to SAP’s CRM Offerings

SAP has launched a new microsite – 360 Degree Customer View – which offers a lot of information which could help companies improve their CRM practices and improve the overall customer experience.^[1] It offers tips, guides and research reports related to the sales, service and marketing lines of business. It also explains how SAP’s CRM/ERP solutions like Sales OnDemand would enable them to provide a superior customer experience using multiple interaction channels, driving sales growth.

SAP Trying to Retain & Grow Share in the CRM Market

SAP currently has 21% market share of the global CRM market, which is expected to decrease to nearly 18% by the end of the forecast period. SAP has traditionally been one of the market leaders in on-premise CRM software, but lately, customers have been moving to on-demand CRM solutions where companies like Salesforce.com dominate the market.

The CRM market is currently worth north of $12 billion and we expect it to reach around $25 billion by the end of the forecast period. SAP has been trying to gain more customers by increasing its marketing and advertising spend over the years, and through initiatives like this microsite. It has also made some headway into the potentially huge Chinese market with its ERP offering.

If SAP were to capture 22% market share in the global CRM market by the end of the forecast period instead of the 18% share we currently predict, it could mean a 5% upside to the $62 Trefis price estimate for SAP, and 20% upside from the current market price.

You can modify our forecast shown in the chart above to see how changes in SAP’s CRM market share affect its stock.

See our full analysis for SAP.

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