01 Oct Salesforce, Oracle lead the pack of CPQ vendors
The Configure, Price, Quote marketplace, once a sparsely populated field with few key players, has erupted into a dense and lucrative industry in recent years. Gartner estimates that the entire CPQ ecosystem was worth $878 million going into 2016, and that growth will continue substantially going into 2020. It’s become more and more clear: CPQ solutions are a necessary component for business sales processes. But with such a vast arena of CPQ providers, how do you choose which platform to go with?
Earlier this year, Gartner released its first-ever Magic Quadrant for CPQ. This diagram plots 11 industry-leading CPQ vendors based on a few essential components. The goal of this diagram is to help inform enterprise buyers to select a solution that best fits their needs.
How does the CPQ Magic Quadrant work?
The magic quadrant is divided into four categories: Challengers, Niche Players, Leaders, and Visionaries:
Challengers: These vendors are typically the newcomers challenging the status quo, forcing others to innovate to remain competitive.
Niche Players: Niche Players are vendors who have a more acute specialization for a few select industries.
Leaders: Leaders are those vendors that have qualities such as great brand recognition, market presence, and customer satisfaction.
Visionaries: Visionary vendors are the companies pushing the envelope of the market, through product innovation, market and global strategy, etc.
Two vendor characteristics influence how companies rank among the four categories: “Completeness of Vision” and “Ability to Execute.”
Salesforce: The undisputed powerhouse of CPQ
Of all 11 CPQ vendors plotted on the Magic Quadrant, Salesforce is arguably the most recognizable name in the market today. Salesforce’s original offering, a CRM solution available via browser instead of standalone software, was the first of its kind and revolutionized the use of cloud computing for businesses.
Salesforce continued to grow over the years, acquiring various companies and subsequently adding more and more functionality on top of its CRM offering. Then, in 2016, Salesforce stepped into the CPQ game. It acquired Steelbrick CPQ and more than doubled that product’s user base in that same year.
The Magic Quadrant identifies Salesforce as a Leader for many reasons. As aforementioned, Salesforce’s brand is perhaps the most “household” name in the CPQ marketplace. Salesforce CPQ is succinctly integrated into the Salesforce’s other offerings including Salesforce Sales Cloud, Community Cloud, and Service Cloud. In addition, the Salesforce AppExchange has helped Salesforce garner a robust offering of partnership opportunities to extend its platform’s power.
Oracle: A perfect fit for CPQ
Coming up just under Salesforce on the Magic Quadrant is Oracle CPQ. Oracle is globally known for its mature CPQ product and strong market presence. Oracle acquired its CPQ product from BigMachines in 2013, joining the already-strong offerings from Oracle, including clouds for marketing, sales, fulfillment, service, and accounting.
Oracle is identified as a Leader on the Magic Quadrant for many reasons. For one, Oracle CPQ is perhaps the most enterprise-ready solution on the market—it has handled more large-scale deployments than any other CPQ vendor, with 10 of those companies deploying to more than 5,000 end users. Oracle and Salesforce are highly-integratible—about two-thirds of Oracle CPQ Cloud customers run integrated with Salesforce Sales Cloud. Lastly, Oracle CPQ has perhaps the most global presence of any other vendor. In fact, Gartner estimates that the proportion of Oracle CPQ customers outside the United States to increase by 30% in the next two years.
Simplus: We’re the experts on both!
So, why are we just focusing on Salesforce and Oracle CPQ offerings? Because our team is the unparalleled expert on all things Salesforce and Oracle! We are listed as the number one Quote-to-Cash implementation partner on the Salesforce AppExchange, and we have strong ties with both Salesforce and Oracle. Whether you need help with the implementation of your solution, advisory services to drive strategy, or managed services to maintain your platform, we are the only choice for your CPQ consultancy. Here at Simplus, we make complex things simple!