The Siebel Observer
November 22, 2004

NEWS

End of the Beginning or the Beginning of the End for PeopleSoft?

An Interview with C3i's David Hanaman

Gainers and Losers
       
Dow
NASDAQ
S&P500
SOI

   Close     
10,456.91
2,070.63
1,170.34
481.91

   Change   
87.28
33.87
6.99
16.38

 Percent  
1%
2%
1%
4%

   Company   

   Close     

   Change   

 Percent  

Siebel
Accenture
AnswerThink
Avaya
Blue Martini
Cap Gemini
Cisco
Cognizant
Inforte
Jacada
Primus
SPSS
Tietonator
WITS
Xansa

9.91
25.42
4.51
15.97
2.77
31.69 euro
19.01
37.93
6.60
2.58
1.29
16
209.50 Sk
14.43
91 p

0.47
0.75
0.09
0.44
0.22
6.44 euro
-0.92
1.28
0.00
0.33
0.00
1.26
3.00 Sk
-0.52
0 p

5%
3%
2%
3%
9%
7%
-5%
3%
0%
15%
0%
9%
1%
-3%
-1%

Quote

It's just like 1999 all over again

Frank Saab
Gigastor.net



Upcoming Events

Enterprise Software Summit
February 6th - February 9th

Accenture Siebel Leadership Council
February 27 - March 2, 2005

Amelia Island Plantation Resort, Florida



Papers

BUSINESS PROCESS OUTSOURCING (BPO)
Outsourced Communications
2004 Edition - India
Bryan Mekechuk

 

End of the Beginning or the Beginning of the End?

Oracle's (Nasdaq: ORCL) battle for for the world's second largest provider of enterprise application software entered a new phase Friday when investors tendered 229,000,000 shares of PeopleSoft stock, representing more than 60% of the outstanding shares in favor of Oracle's $24.00 bid.

"We believe it is time to bring this matter to a close, for the good of PeopleSoft's shareholders, customers, and employees," said Jeff Henley, Oracle's Chairman of the Board.

The vote is not as definitive as it might at first appear. The offer is contingent upon PeopleSoft’s board of directors abandoning its "poison pill" and other legal defences.

In response PeopleSoft's (Nasdaq: PSFT) board unanimously rejected Oracle's offer and in a written statement said "the Company is worth substantially more than the $24 per share".

The board based its thinking, at least in part, on the following assumptions:

  • PeopleSoft will announce sequential growth in license revenue and earnings per share in the fourth quarter. Specifically, they anticipate that license revenue will be in the range of $175 million to $185 million with earnings in the 16% to 18% range.
  • That growth will continue in 2005 Next year PeopleSoft expects license revenue to increase of 5% to 10% and total revenue to grow by 4% to 8%. It also anticipates margins for the year to exceed 20% and earnings per share to come in between $1.05 and $1.10.
  • PeopleSoft will prevail in court On January 10th, its lawsuit against Oracle alleging unfair business practices goes before a jury in Oakland.The suit also alleges Oracle conducted a deliberate campaign to mislead PeopleSoft's customers and disrupt its business and seeks $1 billion in damages.
"We are confident that in the time leading to our 2005 Annual Meeting we will continue to demonstrate PeopleSoft's superior value to our stockholders," the board stated in a written statement.

Much of that confidence must be placed in the business ecology that surrounds the company including Siebel Systems.

top of page


An Interview with C3i's Dave Hanaman

Q. Have you seen many changes in the market since you founded C3i in 1993? Where the company is today?

A. There have been many changes since 1993 to include the acceptance of CRM as a business imperative, the dominance of packaged, enterprise software over proprietary applications, the development of industry-specific solutions, and an understanding of the critical role services play in the long-term success of a CRM initiative.

Clients still deserve the very best service available. We constantly strive to add and improve our services to meet that need.

Today, C3i is the market leader in CRM services for the life sciences industry and is poised to provide these same high-quality services to other industry verticals.

Q. Is this market fundamentally different from the markets you have seen in the past?

A. In the last 11 years we have seen several fundamental market shifts. Each permutation is unique. Today, we see an increased focus on realizing the potential of costly CRM environments while simultaneously lowering support costs. Fortunately, we are in a strong position to provide these diverse benefits to our clients.

Q. What is your company planning to do to weather these changes?

A. We have built out advanced analytical and global capabilities to continue to deliver comprehensive CRM services designed to increase productivity and reduce total ownership cost.

Q. Will C3i continue to focus on just one industry vertical?

A. In 2005 we will extend our service offering into new industry verticals.

We have established ourselves as the market leader in CRM services for life sciences companies-arguably some of the most discerning and demanding companies in the world. Having proven our quality with them, we are now eager to offer our services to other industries with demanding, high-value, mobile workers.

Q. Is this expansion more of a vertical or horizontal approachto the market?

A. The solutions themselves-CRM consulting, training and support-are horizontal; however, the domain expertise and business relevance of each solution are specific to the needs of each industry.

Q. In the future, will the emphasis be on thecustomer or the technology?

A, C3i has always been focused on the customer, and that won't change. We believe that the industry is beginning to embrace a cornerstone philosophy of C3i's: the customer is the critical element, the software and technology are merely enabling tools and the services release the long-term value of the CRM environment.

Q. Will there be an international aspect to C3i's strategy?

A. There already is. We opened our Global Operations Center in India over one year ago. Today, we fully service two major customers from that facility, and we are exploring the advantages of global sourcing every month.

In addition, we are currently scouting out locations for a European office, which is scheduled to open late next year.

Q. Has your offshore center been successful?

A. Absolutely. For example, last month our highest customer satisfaction scores came from an account that is serviced 100% by our global operations center. This satisfaction is critical for our ultimate customer-the field user.

In addition to high customer satisfaction, we help our clients aggressively manage their total cost of ownership-asomething equally critical to our headquarters customers.

We are very pleased with the success of our global operations center.

Q. It seems like a lot of companies run into challenges when they first venture offshore. To what do you attribute your success in India?

We did our homework, both the U.S. with industry experts like Gartner, and in India with experienced local consultants and expert C3i staff.

Ours is a fully owned and operated C3i office, staffed with C3i employees using the same systems we use in the United States. Our entire technology infrastructure is fully integrated through each office, from Morristown to Hyderabad.

We also ensure that our company culture permeates each office, and not in just the obvious things like training and management practices. Our C3i softball teams in New Jersey even compete for "bragging rights" with our cricket teams in India!

This "one company" philosophy is the reason for our success.

Q. How have you managed to prosper when so many companies have come andgone?

We have consistently focused on two fundamentals: delivering high customer satisfaction through operational excellence and running an efficient, profitable business. Despite change in the industry and constant innovation within C3i, these principles have remained constant.

The dynamic that makes this work is in the partnerships we've forged between the C3i professionalsand our clients. Our people are constantly striving to improve the CRM environments we implement, train and support. We are fortunate to have clients who are true partners in our success.

top of page


Contact Us
For further information on the material featured in The Siebel Observer, contact 303-399-8399 or editor@siebelobserver.com.

Unsubscribe
If you received this publication by mistake and don't wish to receive any more issues, please accept our apology for the error and click here. The Siebel Observer uses to ensure your privacy is respected.

Disclaimer
The Siebel Observer is not affiliated with Siebel Systems, Inc. Just as the Siebel Observer does not endorse everything Siebel Systems does, Siebel Systems does not endorse Great Divide Research or the Siebel Observer. This is your guarantee the newsletter will remain an objective, factual source of information. The information contained herein is believed to be reliable, but not necessarily complete nor can its accuracy be guaranteed. All trademarks are property of their respective holders.

Copyright © 2004   The Siebel Observer LLC   All Rights Reserved.    


Copyright ©2003 b2bworkforce Incorporated. All rights reserved. Terms of Use | Online Privacy Policy | Browser Requirements