Siebel claimed during their second-quarter earnings call that Siebel CRM OnDemand had more success against Salesforce.com in the second quarter than in the first quarter. At the same time, they havent really told their customers much about their new service that was supposed to combine the best of Siebel CRM OnDemand and UpShot. What are you seeing from them in the marketplace?
What are their net customer subscriber numbers? … Lets hear how youre doing in the marketplace if youre doing so good. They have all the bravado in the world, but if you cant deliver the numbers, I mean, come on, thats just silly. So what are their net customer subscriber numbers because thats what we gave [last week]: 1,300 net new customers, 21,000 net new subscribers. Over a long period of time, weve told you what our net numbers are. I cannot figure out how theyre doing in the marketplace. I have no idea.
By the way, its not new. I cant figure out how UpShots doing. I cant figure how NetSuites doing. Go to NetSuites homepage, and they say they have 7,500 customers. But theyve had 7,500 customers on their homepage for over a year. So what does that mean? Are these paying customers? Active customers? Did their customer number not grow? Why do they not update that on a regular basis? I dont know where we are in the market in terms of total market share because our competitors will not disclose their net customer subscriber numbers.
I think its totally reasonable if youre the CEO of a company that you should know how your competitors are doing. We have a CRM system here at Salesforce.com, and we track these people all around the world, and we dont see ourselves losing a significant amount of transactions to anybody. So the question is, and its not that we dont lose, everybody loses occasionally, but what are the numbers, the net numbers? Thats what I dont understand.
If they want to come out and say, Well, were this much better than so-and-so and this and that and the other thing, OK, well lets see the money. Show me the money. Thats what we need, we need Jerry Maguire in this industry to kind of hold these guys feet to the fire and say, What are your numbers?
[Siebel] putting out this kind of a press release and saying, We have 175 orders, what does that mean? Thats the press release. I didnt make that up. Were hopefully setting best practices in terms of operating a company in this industry and in terms of disclosure and also the long period of time that weve talked to you about this. Were pretty open as a company.
What do you think of the change in leadership at Siebel, with Mike Lawrie replacing Tom Siebel as CEO?
I think its really an indication of the significant trouble that theyre really in and going through. I think its been very, very difficult for them for the last several years, and now Mike has got to figure out what hes going to do. I have a lot of respect for Mike Lawrie. I think hes an outstanding executive. I think hes one of the best executives in the industry. But I dont know if even one of the best executives in the industry can rescue Siebel Systems.
Because its the end of software. Their model is really upside down.
Whats the biggest challenge for Salesforce.com going forward?
I think the greatest challenge is just continuing to manage growth. Were very fast-growing. Weve given gross guidance for the year of $165 to $170 million. We did $96 million last year. Thats significant growth. Managing that growth and continuing to work to grow the company is extremely important and to take advantage of this great opportunity in the marketplace called on-demand computing.
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