Salesforce and SAP are two top performers in the CRM industry. Both platforms are incredible, with comprehensive and native functionality. So, choosing between them for organizations might be a challenging task. But as per a recent survey, people prefer Salesforce over SAP owing to superior performance and functionality. 

Salesforce is a very popular CRM across the world. As a SaaS application, users can access it through the internet without installing the software on their system. This leading CRM platform hosts this software license exclusively and is operated on a subscription basis. On the other hand, SAP is mainly used to process data. Therefore, it is the ERP software industry leader and is best adapted for creating enterprise solutions and managing corporate operations and customer connections. 

Now, this leading CRM brand has raised revenue for 73 straight quarters, with the most recent showing a 26% year-over-year gain. In addition, the brand earned $ 1.82 billion in service subscription revenue during the quarter. The acquisition of Slack led to an extra $1.48 billion in sales, representing an incredible 53% growth over the year. 

SAP was the world’s fastest-growing primary cloud provider in Q2, with 34% cloud-revenue growth, second only to Google Cloud’s 36%. SAP announced overall sales of $7.52 billion for the second quarter. Salesforce is simply the market leader in cloud solutions. 

SaaS users have been gradually increasing over the years. That is the main reason behind the success of the SaaS platform. According to a study, this industry grows by 18% yearly. Almost 80% of firms use at least one SaaS service, and this statistic is expected to rise this year. 

Salesforce has introduced various CRM tools to deliver multiple sales, marketing, commerce, and business communication solutions. The Enterprise package is $150, less than the IT fees associated with on-premise systems. SAP offers an extensive array of solutions that span topics, including corporate resource management, financial management, and supply chain management. Again, pricing is less expensive than that of on-premise solutions. 

Let’s review a few essential metrics used when discussing the topic. 

1. Market Capitalisation

SAP has been a giant in the tech industry for decades, with Salesforce growing from a start-up to a challenge and then superseding SAP’s market capitalization. As a result, both companies have felt the broader tech stock downturn this year.

2. Market Share

Market-Share is tough to calculate but based on data, it looks like Salesforce overtook SAP in terms of ‘CRM market share’ around 2010. But in 2020, SAP pivoted towards specific CRM areas conceding it was unrealistic to target the number 1 position for the whole CRM market. 

3. Revenue

Now, Salesforce has superseded SAP as the largest provider of enterprise applications, and now, Salesforce’s total revenue exceeds SAP’s total revenue for the most recent quarters. 

Salesforce’s revenue to July 2022 was USD 7.72 Billion.

SAP’s quarterly revenue to June 2022 was EUR 7.517 Billion. Hence Salesforce has overtaken SAP by Revenue in 2022. 

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