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To: Bill Harmond who wrote (12814)	7/18/2002 6:30:00 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 57684

I just told someone in a pm I feel one audience for that CC was the employees who were about to be sacked. Someone from around sebl today told me its a 20% cut, more than they announced in the call. Tom has always been ruthless with personnel. L

To: Bill Harmond who wrote (12814)	7/18/2002 6:55:44 PM
From: Wizard	Read Replies (3) \| Respond to of 57684

Tom Siebel implied that there is no issue regarding shelfware but he is not being honest on that one. There are clearly tons of seats that they sold last year that still haven't been implemented. This was a massive revision to estimates and their own guidance and not to be completely honest on that call after not preannouncing makes me think that Tom just can't imagine that others are doing ok and his company is not. Peoplesoft just reiterated guidance. IBM and Microsoft and Dell and Mercury and Qlogic and McData and ISSX are not entering another leg down in terms of revenues. Indeed, things seem to be ok and 'bouncing along the bottom' with a few pockets of strength. Selling expensive seats into non-crm intensive verticals? Not a good business model right now and verticals that ARE crm intensive (telecom and financial services) just can't do it. The government and education market and selected other verticals (health care) are doing ok. There is a clear differentiation right now. Infrastructure software and data networking and other technology that goes into all verticals (anybody with an IT department) is OK and able to focus on those that are buying. Industry-specific application software is not, not even in retail (witness Retek and JDAS news). BofA Securities (Montgomery) had layoffs today. The brokers here are all wondering how long a few of these small investment banks have left. Somehow, the real estate market is still quite strong. Silicon Valley and some of SF are like L.A. in early 90's. What a bloodbath.