UpShot Fools Them All

By Dennis Callaghan  |  Posted 2003-12-01 Print this article Print

How has Siebels entrance into the hosted application services space as well as their acquisition of hosted CRM services provider UpShot Corp. changed the competitive dynamic? Has it made them more of a threat to Weve always viewed Siebel as our No. 1 competitor. If you look at UpShot, they really kind of had everybody fooled that they were this successful company. Its amazing to me how poorly UpShot has done in the marketplace. Its even more interesting that Siebel said basically theyre going to turn off the service now. They have no intention of continuing the development of UpShot. Theyre moving all of the developers over to Siebel CRM OnDemand, which is the IBM offering.
That product, we have yet to find a customer with any significant number of users on. The customers that they have announced, Planitax was one, they said they had seven users of, those [users] are still live on
We dont know what the status is of CRM OnDemand from Siebel. I dont know if its beta or if its alpha or what. I talked to one guy who had said hes looking at it, he has one user on I havent found any significant customer movement. [At the November user conference] we announced a major new customer for us, [Advanced Micro Devices Inc.], whos our launch customer for the Winter 04 Edition. We signed a $2 million agreement with them. Its 800 users globally for three years. It was a head-to-head compete against CRM OnDemand, and they went with us because they said Siebel just doesnt have anything. What Siebel has done is theyve validated the market. They bought the competitor, UpShot, but then they said UpShot is not their long-term strategy, they made that very clear. And CRM OnDemand is not available. So the market is wide open, and the customer only has one choice right now— So its a very exciting time for us, and our pipelines have never been fuller and our sales have never been better. Didnt you consider UpShot to be your strongest head-to-head competitor in hosted CRM? If you had asked me who our No. 1 hosted competitor is, I would probably have said to you that in most deals we dont see a hosted CRM competitor. Most deals we see a software company like SAP, Oracle, PeopleSoft, Siebel, SalesLogix, Microsoft, etc. And in maybe one-tenth of our deals, well see a hosted CRM competitor. The reality is that we win most of those deals, and these other guys just are not out there. Would you expect other enterprise application software vendors like PeopleSoft or SAP to make a move into the hosted space as well? I dont think that they have been injured as much as weve injured Siebel. Siebel has now had nine quarters of declining sales, and Siebel is now no longer a profitable company. And weve beaten Siebel head-to-head in large transactions like AMD and others that weve talked to you about before. I think that PeopleSoft and SAP are so diversified that they have been insulated from our attack, honestly. But Siebel has not. I think weve significantly damaged Siebel and now theyre just reactive. Their acquisition of UpShot kind of makes no sense. And the CRM OnDemand product, it doesnt make any sense to me what their strategy is. That is, the CRM OnDemand product is not just an IBM product. CRM OnDemand is a software product and IBM is a customer of that software product. And Sun and HP are also going to sell CRM OnDemand with Siebel. And theyre going to sell to service providers. Next page: What Siebels building.


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