Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Siebel Systems (SEBL) - strong buy? -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (3818)	8/23/2000 1:25:28 PM
From: mtnlady	Read Replies (1) \| Respond to of 6974

Greg I don't know 'for sure' what Oracle makes revenue wise on each item (i.e. CRM software ACTUAL sales vs. customizing/support/consulting fees). However (!) I would wager heavily (actually I guess I am because I keep buying SEBL!) that Oracle basically gives away their CRM product because: a) they want to gain market share (and this is beyond business between Larry and Tom.. it's a personnel contest now) b) they can't sell it for anything close to full market price like SEBL can so they have to basically give it away c) Almost all of Oracle's CRM product is, last I checked, NOT a stand alone product. Meaning that customers need to own other Oracle products for it to work correctly (i.e. be able to use most of it's features). So in essense Oracle is hoping that these 'give aways' will help spure sells of other products. d) Oracle charges an almost unreal amount for their consulting time. Years ago when I used to compete against them they were still trying to give away portions of their service product (now rolled up into the CRM mantel). They would give it away and then charge millions for consulting and customization fees. Customers have wisened up to that approach.. at least the bigger customers have (i.e. Siebel's market). My belief is that if customers buy Oracle right now they are basically buying a slapped together Beta product that was huridly put together by over 800 programmers/analysts.. Lord knows I wouldn't want to do that if I was in charge of a project. You couldn't PAY ME to install a product like that. What I DO think will happen is that Oracle will.. a) Kill the smaller companies by doing this turning CRM into a true 3-4 horse race with SEBL way.. way.. way out in the lead. b) Continue to only make inroads by giving away their product to their existing customer base. c) Alienate their supply chain even more. Oracle is going to have to make their monies through consulting/customization. Where do you think that is going to leave their partners? Basically only the partners that sell software that is integrated / adds value to the Oracle CRM offering will be able to make money. And how long do you think it will be before Oracle incorporates these after market vendors features into their product? (Larry has never protected his value chain). My take on this: - Oracle is merely openly confessing to what they have been doing all along. Giving their software away. To me this is a desperate measure to try and not lose anymore market share to Sieble. - Oracle is further alienating their value chain while Siebel is building strong partnerships. - Just as Clarify's sell out to Nortel was raising the white flag to Siebel. I believe this action comes pretty darn close to Oracle raising the white flag in the CRM arena. They have resorted to desperate PR measures to try and throw enough FUD into the air to derail Siebel. Won't work. Siebel is continuing to dominate the CRM arena.