Pivotal Unveils Suite Amid Shakeup

With falling revenues, COO resigns, president to control more.

Pivotal Software Inc. last week began shipping its Pivotal Service Solution customer service software suite, just one day after an executive shakeup that saw its chief operating officer resign.

The software enhances Pivotals current software to address multichannel customer service and with increased analytical capabilities.

Pivotal Service Solutions Pivotal Contact Center module provides capabilities for managing customer service across multiple channels, including e-mail, phone, fax and Web chat. The Pivotal Self Service module offers Web-based guided service and support.

The suites Service Analytics component provides the full history of customer service incidents to improve forecasting, resource scheduling and service processes, according to officials at Pivotal, in Vancouver, British Columbia.

Pivotal Contact Center "has a better interface, its a nicer desktop to work from and its easier to modify the product," said Dave Marvin, who is using the Pivotal Relationship 99 suite and has evaluated the new suite.

"The current product is good; we dont have a major desire to move quickly. And weve customized it so much, so there could be some issues there," said Marvin, CEO of Wind2 Software Inc., of Fort Collins, Colo. "But theres no doubt in my mind well move within the next six months."

Also last week, Pivotal announced an organizational shakeup that included the resignation of COO Vincent Mifsud. The shakeup made it obvious that new President and CEO Bo Manning, who replaced co-founder Norm Francis in late August, is tightening his grip on the company.

The heads of seven core business functions at the company—marketing, sales, alliances, professional services, international operations, finance and administration, and research and development—will now report directly to Manning.

Pivotal also announced the promotion of Divesh Sisodraker, the companys vice president of corporate development for the past 18 months, to the position of chief financial officer.

Changes were inevitable at Pivotal. The companys net loss was up considerably over the year-ago period for the fiscal year ended June 30, coming in at $32.5 million on $95.3 million in revenues. The company last week warned that revenues will continue to fall for the first quarter ended Sept. 30 to between $16 million and $17 million. That is well below financial analysts consensus revenue estimate of $30 million and below the $21.1 million Pivotal recorded in the same period a year ago. The company figures to lose between $11 million and $12 million on those revenues.

Marvin called the management changes at Pivotal a "natural evolution" and said he didnt expect Pivotals financial conditions to affect his company.

"Its been a tough cycle for everyone, but I think theyll have staying power," Marvin said. "They have a good customer base and a strong product."