North American Mobile CRM Market:
Investment Themes Driving the Mobile CRM Space
Swarna Pasupathi, Research Analyst
Business and Financial Services
Information and Communication Technology
September 30, 2008

Focus Points
Introduction
Market Overview
Investment Analysis
Scorecards
Question and Answers
2

Introduction
• Frost & Sullivan’s Financial Research team has recently completed an extensive review of
investment opportunities in the North American Mobile CRM market.
• The study highlights the growth segments in the North American Mobile CRM market, and
identifies specific investment themes and opportunities within the market.
• It includes a comprehensive overview and in-depth financial analysis of the North American
Mobile CRM universe covered by Frost & Sullivan.
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Focus Points
Introduction
Market Overview
Market Segmentation
Industry Economics
Investment Analysis
Investment Themes
Growth Monitor
Scorecards
Sector Scorecard
Mergers & Acquisitions Analysis
Venture Capital Score Card
Venture Opportunity Score Card
Question and Answers
4

Market Overview - Segmentation
Segments Focussed
• Mobile Sales Force Automation (SFA)
• Mobile Field Service Management (FSM)
Major Industry Participants
• COGNOS
• Oracle (PeopleSoft and Siebel)
• Salesforce.com
• SAP AG
• Maximizer Software
• Vettro
• Dexterra
• SAGE
• Sybase – iAnywhere Solutions
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Market Overview
Market Overview Market Segmentation Industry Economics
• Enterprise inclination towards mobility platform is on the rise.
• Growth: CRM spending is growing at 11.8% CAGR
• Opportunity: Mid-market is still under-penetrated; only 20% of SMBs use mobile CRM
and the rest of firms are in decision-making cycle to adopt mobile platform during the
period 2008-2012.
Despite an economic slowdown SMB’s will continue to invest in mobile solutions :
• Competitive Advantage
• Increases Productivity with less staff
• Increases Customer Satisfaction
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Industry Economics
Increases Productivity and ROI Lack of justifying the total
cost of ownership (TCO)
The concept of mobile-commuting
in the workforce offers flexibility thereby
E
increasing the overall productivity of the Non-Acceptance of Technology
N I
team.
H N
A The is an increase in the number of H
Security and Integration issues on
N vendors offering of Mobile-CRM I
C integration applications. mobile devices stunt growth in the B
E SMB segment I
R Steady tariff plans from Mobile T
S Network Service Provider O
Increase in Number of Vendors R
Subsidized mobile device S
prices have reduced the deployment
cost for organizations. Information Lag
Availability of varieties of high
powered mobile devices has created Slow rollout and adoption of next
a robust platform for mobile application.
generation networks
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Investment Framework
Investment Analysis
Investment Themes Growth Monitor
1. Standardization of Mobile Network Operator’s Tariff Plans
2. Decrease in the Mobile Device Price
3. Immense Increase in Smartphone Shipment Worldwide
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Investment Framework
Investment Analysis
Investment Themes Growth Monitor
1. Standardization of Mobile Network Operators Tariff Plans
120
Network Service Cost ($)
100
80
60
40
20
0
300 600 900 1500
Anytime Minutes
Verizon T mobile AT & T Sprint
Source: Frost & Sullivan
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Investment Framework
Investment Analysis
Investment Themes Growth Monitor
2. Decrease in the Mobile Device Price
Mobile Device Price ($)
700
600
500
400
300
200
100
0
2003 2004 2005 2006 2007 2008
Years
Windows Mobile Palm Treo Blackberry Apple
Source: Frost & Sullivan
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Investment Framework
Investment Analysis
Investment Themes Growth Monitor
3. Increase in Smart Phone Shipment Worldwide
Units Shipped (Million)
120
100
80
60
40
20
0
2004 2005 2006 2007
Year
Shipment in Smartphone Devices Worldwide
Source: Frost & Sullivan
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Investment Framework
Investment Analysis
Investment Themes Growth Monitor
Company Company’s Total NA NA Mobile CRM Growth MSFA FSM
Revenues in 2007 Revenues in 2007 Rank (%) (%)
($ Million) ($ Million) (%)
Segment CAGR (2007-2012) 20.6 15.0
ASTEA 20.4 1.3 20.0-25.0 0 100
ORACLE 9,460.0 47.0 15.0-20.0 65.0 35.0
Salesforce.com 557.9 43.0 15.0-20.0 80.0 20.0
SAP AG 4,064.0 24.4 15.0-20.0 60.0 40.0
Source: Frost & Sullivan
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Focus Points
Introduction
Market Overview
Market Segmentation
Industry Economics
Investment Analysis
Investment Themes
Growth Monitor
Scorecards
Sector Scorecard
Mergers & Acquisitions Analysis
Venture Capital Scorecard
Venture Opportunity Scorecard
Question and Answers
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Segment Opportunity Scorecard
Sector Score Card Mergers & Acquisitions Venture Capital Venture Opportunity
CAGR Attractiveness
Average
Number of Revenues % Sector to Venture
Sector Company
Companies ($ Million) (2007 – Consolidation Capital
Size
2012) Partners
Small < 15 25.3 Low-Medium High
MSFA 15.0
Medium < 10 46.8 Medium–High Medium
Large <5 132.9 High Low
Small < 30 19.8 Low–Medium High
MFSM 20.6
Medium <10 56.9 Medium Medium
Large <5 210.9 High Low
Small < 10 19.0 Low High
MSFA and 15.0 –
MFSM Medium <10 42.6 17.5 Medium–High Medium
Large <5 160.2 High Low
Source: Frost & Sullivan
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Segment Growth – SFA & FSM
Sector Score Card Mergers & Acquisitions Venture Capital Venture Opportunity
1000.0
Growth $ Million
800.0
600.0
400.0
200.0
0.0
2007 2008 2009 2010 2011 2012
Years
SFA FSM
Source: Frost & Sullivan
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Mergers and Acquisition Analysis
Sector Scorecard Mergers & Acquisitions Venture Capital Venture Opportunity
Deal %
Target
Date Acquiring Target Business Size Revenue Owned
Revenue
Announced Company Company Acquired ($ Multiple After
($ Million)
Million) Transaction
Business
Enterprise
7-Oct-07 SAP AG Objects 6,780.0 1,250.0 5.4 100
Software
SA
Omniture Visual Business
25-Oct-07 394.0 78.8 5.0 100
Inc Sciences Analytics
Business
12-Nov-07 IBM COGNOS 5,000.0 949.0 5.3 100
Intelligence
Source: Frost & Sullivan
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Venture Capital Scorecard
Financial Analysis
Segment Opportunity Mergers & Acquisitions Venture Capital Venture Opportunity
Relevant
Experience Funded
Date of Venture Year of Field of Funding
Company Segment of Amount ($
Funding Partners Establishment Investment Round
Management Million)
Team
Battery
1983 IT Experienced
Since Ventures
Onyx CRM 0 N/A
2003 Thoma
1998 Diversified Experienced
Cressey
01-Aug-
Draper
04 and IT and
Fisher 1978 Experienced 2.0 + 5.75 A and B
01-Feb- Healthcare
Jurvetson
05
Sugar
CRM
CRM
17-Oct- New IT, Biotech,
05, 07- Enterprise 1985 and Clean Experienced 14.0 + 5.5 C and D
Feb-08 Associates Energy
Source: Frost & Sullivan
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Venture Opportunity Scorecard
Financial Analysis
Segment Opportunity Mergers & Acquisitions Venture Capital Venture Opportunity
Company’s Application
Funding Till Catering to Technology Clients and Overall
Company Segment
Date Mobile Innovation Reputation Attractiveness
($ Million) Devices
MSFA
Metrix & 50 Medium Medium Medium Medium
MFSM
MSFA
Antenna
& 45.5 High Medium High Medium-High
Software
MFSM
MSFA
Dexterra & 86.5 High Medium Medium Medium-High
MFSM
Source: Frost & Sullivan
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Future Roadmap
• Increased adoption to mobility platform by SMB segment
• The roll out of Apple iPhone and Goggle Android phone
• Emerging Platforms and possible alliances in the future
• Mobile Applications vs. Mobile Network Service Providers vs. Mobile Device
Manufacturers vs. Internet Community vs. Customers
• Innovative, patentable and interoperable mobile application will attract future
investments.
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