Forrester has a CRM Wave focussed on the mid market for Q1 2007, Below are excerpts from the same:
The CRM midmarket is increasingly dominated by software-as-a-service (SaaS) options - including those from Entellium, NetSuite, RightNow, and salesforce.com, as well as Oracle's Siebel CRM On Demand - whose frequent, automatic upgrades are further fueling the SaaS CRM momentum. This year's evaluation marks the first year that the Microsoft Dynamics CRM product emerges as a Leader in a Forrester Wave as well as the first year that Forrester is including an open source offering: SugarCRM's Sugar Enterprise.

Firms continue to invest in CRM technologies at a steady pace: Forrester estimates 2006 spending will exceed $8 billion.1 Consolidation of leading CRM vendors (Epiphany/Infor Global Solutions, Onyx Software/M2M Holdings, Oracle/PeopleSoft/Siebel), intensified competition from wellcapitalized business applications players (SAP and Microsoft), and the rise of new SaaS deployment options (RightNow, salesforce.com) mean firms must carefully think through CRM solution strategies.

Microsoft Dynamics CRM. Microsoft has shotgunned from a middle-of-the-pack offering in Forrester's 2005 midmarket SFA evaluation to a market leader in the 2007 CRM suites evaluation. In addition to leveraging the strong Microsoft brand name, Dynamics CRM also excels at leveraging a range of Microsoft products to enhance CRM capabilities. Dynamics
CRM's UI is modeled after Microsoft's popular Outlook email client, meaning a familiar user experience, shorter training time, and higher adoption rates. Dynamics CRM also leverages Microsoft tools like SharePoint and SQL Server Analysis Services to deliver additional value.

Source: 1

Prashanth Rai