Feeds

Siebel: second thoughts on hosted CRM

Inflection point?

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Following a summer of rumor, Siebel Systems has finally spoken out and announced its intention to launch a hosted CRM service. Although widely predicted, the move will throw the already unsteady CRM sector into further turmoil and further raises the issue of whether the enterprise software industry is at a technology inflection point.

Siebel will offer CRM OnDemand as part of IBM's OnDemand program and provide sales, service and marketing capabilities to assist with lead and account management. The plan is to allow users to combine on-premises and on-demand solutions.

Siebel's motivation in moving to a service-based model has several facets.

David Schmaier, Siebel executive vice president, described it as a market-making and market-changing announcement, predicting that in future software would look a lot like this new Siebel model. Its goal was to provide software that was easy deployable, usable and affordable and could be integrated with Siebel's on premise software.

Both Siebel and IBM stressed that it was not a case of on-demand only or on-premises only and Mr Schmaier said that the approach would generate major new opportunities. In its current guise CRM OnDemand is generic and horizontal in orientation, but this is only the first of multiple offerings that will combine different services and different products and be geared towards different vertical industries or geographic locales.

With sales of licensed applications tumbling, Siebel needs to generate new sales. It also needs a lower cost offering to enable it to effectively compete with SAP, PeopleSoft and Oracle - particularly following PeopleSoft's value-based pricing initiative and SAP's decision to include the CRM component in sales of the mySAP Business Suite. Both initiatives come at a time when these broad-based suite providers have largely caught up with Siebel in terms of the breadth and depth of CRM functionality. At the other end of the market it needs to head off the growing threat and even lower price points offered by Microsoft Business Solutions and Salesforce.com.

There are also the issues of usability and user adoption, which are recognized as problems within the industry and CEO Tom Siebel is on record as saying the company has to reduce the complexity of its offering.

Web-based offerings, accessed via browsers, immediately reduce the level of complexity from a user perspective and Siebel is making much of the usability aspects of CRM OnDemand with its HTML-based zero footprint client.

Source: Computerwire/Datamonitor

Related research

Reuters Business Insight, The CRM Outlook

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Bitcasa bins $10-a-month Infinite storage offer
Firm cites 'low demand' plus 'abusers'
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.