Siebel Systems (SEBL) - strong buy? Message Board

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Technology Stocks : Siebel Systems (SEBL) - strong buy?

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To: seth thomas who wrote (1216)	3/11/1998 11:47:00 AM
From: Melissa McAuliffe	Read Replies (1) of 6974

Once again I find myself compelled to jump in here. << That has HUGE impact on recognizable revenue because that would be a deliverable. No revenue recognized until it's delivered. And since SEBL has little or no professional services org, they can't slide revenue to that side of business.>> You are making the assumption that the entire agreement would be deferred. This is not how contract revenue is recognized. Worst case, I would expect that some prospects would want to tie up a certain portion of the revenue until the availability. But certainly not the whole thing. This is no different than what you run into when a new software release is imminent and though the customer is taking delivery of the current release, it is the new release they want to implement. I would make the assumption here that by the time one gets to the point of negotiating, the company wants to buy from you. At least that's how it's supposed to work.<g> This is the time for give and take. That's what a negotiation is. SEBL wants to recognize as much revenue as possible, the prospect wants protection. I am 100% certain these things can be worked out. Sales is about developing trust. Not saying this will always be easy but let's not think it will be a dealbreaker either. About the only place I can think of where I know these will be a difficult negotiation is in NY where no one trusts anyone anyway. Any negotiation is difficult there. But even there, where the negotiations are often times run totally by the attorneys, the business person can step in and say..I want this software.. Give up the point. It happens all the time. Granted, there will probably end up being some amount of revenue potentially not recognized but NOT the whole deal. NO WAY. All I can say is this. If I wanted to sell again, I would go to sebl in a heartbeat because I know I would clean up. And not one of the issues raised on this thread would phase me in the least. But not sure I would want the sales stress again either.<g>

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