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

To: Shege Dambanza who wrote (1073)	1/25/1998 3:25:00 PM
From: Amsterdam	Read Replies (1) \| Respond to of 6974

I didn't crunch the numbers like you but it makes sense considering their business model relies heavily on AC and other integrators. Integrators like AC are in the deal primarily for the services revenues and they want to start billing as soon as possible, which pilots are good for. Also, there's a finite budget for these deals and if the SW vendor gets $3mil up front it can leave less for services. In defense of AC and other integrators, the failure rate for SFA projects is very high (according to Gartner) and in such an environment recommending a pilot is often the prudent move for the consultant.