CPQ (Configure, Price, Quote) and CLM (Contract Lifecycle Management) are both software solutions that help streamline the sales process and improve revenue generation for businesses. However, there are several key differences between CPQ and CLM.

1. Functionality: CPQ software focuses on the front-end sales process, specifically the configuration of products, pricing, and quoting. It helps sales teams create accurate and consistent quotes quickly and efficiently. On the other hand, CLM software is designed to manage the entire contract lifecycle, from initial negotiation and drafting to ongoing management and renewal. It helps organizations centralize and streamline their contract processes, including creation, negotiation, approval, signature, and compliance.
2. Scope: CPQ is typically used by sales teams in the pre-sales process to configure and price products or services for potential customers. CLM, on the other hand, is more commonly used by legal teams and contract managers to manage contracts throughout their lifecycle, from drafting to renewal.
3. Integration: CPQ software often integrates with other sales tools, such as CRM and ERP systems, to provide a seamless end-to-end sales process. CLM software, on the other hand, may integrate with other legal and compliance tools, such as e-signature software and document management systems, to ensure compliance and minimize legal risk.
4. Focus: CPQ software focuses on helping sales teams create accurate and competitive quotes quickly and efficiently, with a focus on increasing sales velocity and reducing errors. CLM software focuses on managing the contract lifecycle, reducing risk, and improving compliance.

In summary, while both CPQ and CLM software aim to improve business operations, they have different focuses and serve different parts of the sales and contract management process. CPQ streamlines the pre-sales process by making it easier to configure products, price them, and generate quotes. CLM, on the other hand, focuses on managing the entire contract lifecycle, from negotiation to renewal, to ensure compliance and reduce legal risk.