Calico is a strange story to me. They started off with a strong image, good VC backing, hired a big salesforce, everyone partnered with them, etc., and then they just seemed to fizzle. In the last year I don't think they've won more than a few deals, and have had a lot of turnover (if anyone has counter info please chime in). I believe the VP of Sales left, possibly the president, much of their salesforce.... a hightech debacle.
So it doesn't appear as though they can go it alone, and hence ripe for a takeover. On the other hand there may be (probably) solid reasons why their product wouldn't sell and therefore it would be a mistake to buy them. I had heard some stories on their technology that didn't sound so great. IMO, Siebel has already looked at them in some depth because they've had a common bluechip customer in Cisco for close to two years, yet Siebel is now working with Concentra as a partner? That suggests Seibel didn't like what they saw in Calico's product or possibly a management mismatch. Looking at Concentra's financials (very ugly) I can't understand what Seibel see's in them either, other than the last lady at the dance.
There are a couple of newer products on the street that look pretty good and would be a better acquisition for Siebel because I think their technology is better, which is primarily what Siebel needs, and they'd be a cheaper purchase because they are still young and their sales reflect it. Those would be Selectica or Exactium. |
