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

To: mtnlady who wrote (5431)	10/19/2001 1:32:25 PM
From: Mike Buckley	Respond to of 6974

mtnlady, Also PeopleSoft's percentage of income from new sales wasn't all that good (50 something % wasn't it?). It seems like Siebel's was higher but I can't get my link to Siebel's report working right now. I don't know what PeopleSoft's percentage was, but let's assume it was about 50%. That's in line with Siebel's preferred rate. Siebel's Q3 was an aberration with 72% coming from new sales. Tom Siebel was surprised that so many ongoing projects with existing customers were put on hold. He intuitively thought that new customers would put decisions on hold and that existing projects would be more easily funded. He was surprised that it worked out to be the other way around. In addition to the reasons you mentioned, it's tough comparing PeopleSoft and Siebel because the two business models are very different. Siebel emphasizes licensing whereas service takes on a much more prominent role in PeopleSoft's model. Yet PeopleSoft's service revenue grew 21% year over year compared to a bad year while Siebel's grew 25% compared to a great year. --Mike Buckley