Aberdeen Survey Shows Majority of Siebel Customers Report a Positive ROI

Aberdeen Group reports that based on a large scale Siebel customer survey, the majority of organizations utilizing Siebel products say the technology has yielded demonstrable benefits and has produced investment returns. The study, Does CRM Work?, found the following:

• Operating costs declined by more than 10% for 87% of the customers surveyed.
• Customers reported, on average, that sales productivity increased 17%, service and contact center productivity increased 16%, and marketing productivity increased 12%.
• 71% of the survey respondents indicated that their Siebel project was within 10% of the budget.
• 73% of the survey respondents said they would add to or upgrade their CRM system in the next 12 months.
• More than 90% of the survey respondents said they would recommend Siebel applications to others.

"This is the first quantitative study based on a statistically significant sample of users," said Denis Pombriant, Vice President and Managing Director, Customer Relationship Management for Aberdeen Group. "Up to this point, the only CRM studies available to customers have been small-scale, qualitative studies based on undersized samples."

To make the survey sample statistically valid, Aberdeen surveyed more than 1,400 customers of Siebel Systems and received 535 responses. In contrast, Nucleus Research surveyed 66 organizations and received 23 responses when it concluded that 61% of Siebel reference customers report a negative return-on-investment. Nucleus Research has since conducted similar surveys on Manugistics, i2, Cognos, and SAP.

Dendrite Launches Hostile Bid for SYNAVANT

Dendrite International (Nasdaq: DRTE) is challenging the proposed acquisition of SYNAVANT (Nasdaq: SNVT) by the French group CEGEDIM SA (Nasdaq: CGM.PA) in court, in the market, and in public.

Dendrite develops software and provides consulting services to increase value in sales, marketing, and clinical processes for pharmaceutical and other life science clients. Dendrite is also Siebel Systems' principal competitor in this vertical. SYNAVANT offers pharmaceutical Customer Relationship Management and Interactive Marketing services and is a Siebel consulting partner. CEGEDIM provides value-added information and CRM solutions for the pharmaceutical industry and healthcare professionals, primarily in Europe.

Dendrite is seeking to invalidate the SYNAVANT-CEGEDIM merger agreement in Delaware Chancery Court. The lawsuit also seeks to compel SYNAVANT to waive its "poison pill" and terminate the expense fees payable to CEGEDIM. In a letter to the SYNAVANT board, Dendrite has also indicated it would increase its offer to SYNAVANT stockholders should the fees be waived.

Dendrite proposes to acquire all of the outstanding shares of SYNAVANT at a cash price of $2.50 per share. This represents a 9% premium over the $2.30 per share price CEGEDIM has agreed to pay SYNAVANT shareholders in their proposed merger. (The CEGEDIM offer represents a premium of 142% over the closing price on March 16, 2003.)

Since Dendrite competes with Siebel Systems, a successful takeover may affect SYNAVANT's 78 consultant strong Siebel practice. Siebel Systems reserves the right to cancel the alliance agreement in the event a partner is taken over by a competitor.

"We hope this will not affect our relationship with Siebel," said Mary Stuart, Vice President of Corporate Communications at SYNAVANT.

Craig Ramsey Joins Salesforce.com's Board of Directors

Craig Ramsey, former Vice President of Sales for Siebel Systems, has been elected to salesforce.com's Board of Directors. Ramsey assumes the position vacated in 2000 by Larry Ellison, who left when Oracle Corporation elected to compete directly with salesforce.com.

While at Siebel Systems, Ramsey oversaw the company's sales growth from $4 million to more than $1.5 billion. Prior joining Siebel Systems, Ramsey was Vice President of US Sales at Oracle Corporation, where he worked closely with both Marc Benioff and Tom Siebel. Craig has also held positions at Amdahl as well as at other high tech software and hardware companies. Ramsey began his career in technology with IBM in 1968.

"After working with Craig for over 17 years, I know firsthand that he brings an unprecedented level of expertise," said salesforce.com's CEO, Marc Benioff. "We could not have attracted a better candidate."

Siebel Systems Reports Earnings

Consistent with its April 4th warning, Siebel Systems (NASDAQ: SEBL) reported that new license revenue in the first quarter of 2003 decreased 29% to $112 million, compared with $157 million in the previous quarter.

"Clearly it was a tough quarter," said Tom Siebel. "Unfortunately, several significant transactions did not get signed by March 31st."

Revenues from maintenance, consulting, and other services decreased 7% to $221 million. Total revenues decreased 16% to $394 million. In line with analysts' revised expectations, Siebel Systems reported earnings of 1 cents per share.

The company concluded new engagements with more than 160 new customers and expanded engagements at more than 230 customers.

New customers include ABSA Bank, Ceridian Corporation, Caixa díEstalvis i Pensions de Barcelona, City of Los Angeles Department of Water and Power, Colegio de Medicos de Barcelona, EDF, GES Exposition Services, Globacom Limited, Grupo Roche Syntex De Mexico, H.J. Heinz Company, Independent Health Association, INDRA Systemas, Interpolis, Invitrogen Corporation, KOS Pharmaceuticals, Motorists Mutual Insurance Company, Nefit Buderus, Norges EksportrÂd, One Call Medical, Puerto Rico Telephone Company, Tata Engineering, The Guardian Life Insurance Company of America, The MathWorks, and TV Cabo Portugal S.A.

Existing customers who made significant reorders include: 3COM Corporation, American Power Conversion Corporation, Atesia, Aventis Pharma, Bayer, BNP Paribas, Boehringer Ingelheim, Bose, Bouygues Telecom, ClientLogic, FNV Bondgenoten, Hoffman La-Roche AG, Irish Life & Permanent, I.T. Telecom, London Borough of Tower Hamlets, London Electricity Group, Lufthansa Cargo, Mexx International, Novo Nordisk, Sabre Holdings, Servei de Telecommunicacions díAndorra, Siemens Business Services, OHG, Sun Life Assurance Company of Canada, Tollpost Globe, VVF Vacances, and Zapadoceska Energetika.

The company remains strong financially and seems to be expanding market share at the expense of most of its competition.

"A lot of negative things are already reflected in price of the stock," said Deutsche Bank Securities analyst Brian Skiba, who rates the stock a buy. "Any hint of improvement has big leverage."

Corel Validates iGrafx FlowCharter 2003

Corel iGrafx FlowCharter 2003 has been validated with Siebel 7.5 and the Corel Corporation (Nasdaq: CORL) has joined the Alliance Program as a Software Partner. This news is significant because Siebel Systems has selected the iGrafx product suite as the tool to model, manage, and distribute the Business Process Library of the Universal Application Network (UAN). Siebel Systems is using iGrafx software to create more than 800 process diagrams detailing the business processes supported by Siebel applications. The integration enables users to link directly from specific process steps to the relevant screen in the Siebel application.

"After reviewing the possible options to document our business processes, the Corel iGrafx solution was a clear choice," said Ken Pulverman, Product Line Manager of Siebel Systems' Business Process Solutions Team.

Using iGrafx software, Siebel Systems has developed and is distributing more than 800 business process diagrams. These diagrams map the steps taken to manage and improve relationships with customers, partners, and employees. Following the steps allows corporations to better sell, market, and serve customers across multiple channels and lines of business.

With this validation, customers of Siebel Systems and Corel can now benefit from an integrated business process approach to deploying Siebel applications. Customers will be able to deploy more "out-of-the-box functionality," which reduces implementation time and lowers the total cost of ownership.

The iGrafx process management software used by Siebel Systems' customers will be supplied by Corel or Corel-approved resellers.