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Technology Stocks : Vantive Corporation
VNTV 77.60+2.6%Jan 12 4:00 PM EST
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To: Clam Clam who wrote (1620)3/2/1998 4:56:00 PM
From: Trader Dave  Read Replies (3) of 3033
 
Additional merger related thoughts:

Siebel faces another major challenge besides technology and personnel integration -- it's a business model challenge.

A few thoughts:

It is much easier for a sales force to deal with higher selling prices and larger deal sizes than a decline in both. A transition to the mid market has been a challenge (or the undoing) for many software companies.

I suspect the surviving sales reps will be Siebel reps. I'm not sure the SCOP reps will survive (or want to) under Tom's thumb. :-)

Vantive is in the enjoyable position of increasing revenues per user and increasing deal size as the company broadens its product line and expands into SFA.

Siebel has explicitly avoided "small" customers. I suspect it will be no fun for a Siebel rep to pursue a deal with a fraction of the seat count at a fraction of the price. Sales folks are used to closing a certain number of transactions per quarter -- it's often just as difficult to close the $80,000 deal as it is to close the $800,000 deal.

Siebel reps have seen a substantial run up in their stock options - there's still plenty of room on the Vantive side.

The business and selling model is the number one area that the investment community misses in evaluating the challenges of a merger. This could be an opportunity for Vantive.

Any thoughts from the folks out there selling this stuff?

TD
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