SO: What are your major concerns about your enterprise software vendor?

CFO: ERP implementations typically cost twice as much and provide half the functionality you expect. Typically project scope creep always adds more time and money than planned to the process, which means very few CFOs survive an implementation. The key is to set expectations, communicate them to your vendor and then stick to your guns.

SO: If you are so dissatisfied, why not go with another vendor?

CFO: Switching vendors is not an option because you just can’t afford to tear out a production system. The switching costs are astronomical and whatever functionality gets added never justifies the expense.

The last place I worked had 14 general ledgers and that was worse. The basic goal of any financial system is to execute better management decisions. With 14 general ledgers you would run queries and compare apples to oranges and make poor decisions as a result. A large organization can not escape standarizing on a single system and using one definition for its data.

SO: How do you implement an enterprise system successfully?

CFO: Implementing an ERP system is like trying to solve a differential equation with more than one solution. To be successful you have to draw a straight line between A and B and don't waiver. But it's human nature to waiver, particularly with so many people involved. Getting everyone in the organization to agree on a common definition for the data is also causes a lot of brain damage, but that is where lot of the benefit is.

SO: Has Oracle’s takeover bid for PeopleSoft impacted spending on other enterprise software?

CFO: No

SO: How do you feel about the merger?

CFO: The merger would mean one less competitor in the market. Over time you would end up spending more for the same service. I am not sure that would be good for either party. When DEC and Compaq merged, Dell really came on strong. I think it was because Dell was able to focus on the core business instead of worring how it was going to complete a merger. So it may not be good for Oracle in the long run

SO: How do you feel about the subscription model for software?

CFO: Anything that can take away the mystery behind software pricing is attractive. It may prove more efficient in the long run, but people will first have to overcome any feeling of ownership over information. Some vendors have turned to outsourcing, but hosting an application requires more trust. An asset-intensive business, like a utilities company, has to justify its rates with regulators. They would have to trust the hosting company to maintain clean records and not lose any expense that can be used for justification. They would also have to feel comfortable that competitors who were also clients of the hosting company will not be able to see their records. Hosting is a good idea, but there are some emotional issues surrounding it.

SO: Where could the enterprise software vendors improve?

CFO: Right now complying with Sarbanes-Oxley is driving us nuts. Vendors should build more complance technology so we can eliminate manual checks and balances. This would actually be in the national interest. Investors would have more faith in financial results if they knew the results came from an automated process.

• Mike Lawrie's Keynote Speech
• Business Intelligence Summit
• Learning about the product from actual Siebel customers like Michael J. Winkler, HP's Chief Marketing Officer
• Headstrong Diner
• Gensys Golf Event
• Partner Pavilion
• Accenture Partner Shep Parke's Presentation
• Catching up in the Networking Lounge with free espresso and free massages
• Customer driven conference tracks
• Sheryl Crow

After eleven years heading up Siebel Systems, founder and Chairman Tom Siebel spoke about his career, the state of the industry and his competitors at the OracAlumni Network Speaker's Forum in San Mateo, California. Upon his return from an eight-week family vacation, Siebel appeared relaxed as he addressed "secular changes" in the software business that may pose detrimental challenges for upcoming entrepreneurs.

"The 80's and 90's were a time of economic growth unparalleled in human history," said Siebel. "Information technology, entertainment and medical technology saw changes on an unprecedented scale and this resulted in a better world. I don't think we'll see change of that magnitude in the next two decades."

Recounting the highlights of his career, Siebel recalled being recruited by Oracle's from the University of Illinois's computer science department in the early 80's. The company hired him for his graduate-level research in the field of databases. As one of its first employees, Siebel observed the technical support personnel doing the all work and the salespeople making all money. He advanced quickly with Oracle, securing a position as a database salesman and eventually heading Oracle's telemarketing department, a position competitor and Salesforce.com founder Marc Benioff would also hold. Siebel approached the problem of managing sales from a scientific perspective, which led him to develop his first CRM system: Oasis.

When asked for advice on achieving early success, Siebel suggested that entrepreneurs develop expertise in domains or an emerging area of technology, but cautioned students against studying computer science. He maintained that biotechnology is a better bet in today's market.

According to Siebel regulatory requirements have changed the risk-to-reward ratio that attracts talented people from around the world to startups and the Silicon Valley. Having spent his entire career in three startups, Siebel expressed his empathy to those who choose this career path. He called the experience “heartbreaking,” and acknowledged the enormous stress involved in starting a technology business — stress that is complicated by the personal and family sacrifice involved.

Siebel said obstruction in capital flow, changes in perception of risk, and increased government restrictions on financial incentives — such as stock options — make starting up a business tough.

He went on to speculate that startup employees will soon negotiate for benefits like healthcare and retirement pension plans. They will opt for cash compensation rather than equity. This would benefit established companies like Microsoft, Cisco, SAP, and Siebel Systems.

The goal today, said Siebel, is a privately owned services business that does not participate in the public capital markets, but generates lots of cash.

Web services, said Siebel, have realized the dream of CORBA (Common Object Request Broker Architecture) and DCOM (Distributed Component Object Model) and would force software makers though a transition similar to that caused by the introduction of the relational database or the Internet. Applications vendors’ support of web services has become a “level 0 requirement” according to Siebel. Yet from application perspective, since web services look like operating systems, he expects the technology to benefit established companies rather than startups.

Siebel went on to say that the software-licensing model is a viable market with the emergence of RightNow, Salesforce.com, and other subscription based models. Subscription services hold particular appeal for small and medium business, but Siebel predicted a hybrid model of perpetual and subscription software would eventually triumph.

About Oracle, Siebel stressed that founder Larry Ellison has not received his due credit. Siebel remains skeptical that Oracle’s aggressive takeover of Peoplesoft will ever occur. When ask why Oracle was not competitive in enterprise applications, Siebel attibuted it to Oracle's failure to develop domain expertise in applications.

“Oracle makes 140% of its profit on database,” said Siebel. “Think about that.”

About his legacy, Siebel said he was most proud of creating 5,000 jobs within Siebel and 250,000 jobs among customers, partners, and suppliers.

The inaugural Business Intelligence (BI) Summit will take place simultaneously with the Siebel User Week 2005 conference. The Summit is will unite innovators with BI experts to discuss trends and future perimeters of business intelligence, data warehousing, performance management, customer insight and analytic applications.

Leaders expected to attend the Summit include Larry Barbetta, Group Vice President and General Manager for Siebel Business Analytics, Wayne Eckerson, Director of Research at The Data Warehousing Institute (TDWI), Henry Morris, Group Vice President for Applications and Information Access at IDC and David Stodder, Editorial Director and Founding Editor for Intelligent Enterprise. Experts in BI initiatives and strategies will include executives from Microsoft, IBM, Teradata, HP, Deloitte, Informatica, Sun, Metricsphere and Unisys as well as analysts from Gartner Research, IDC, META Group and Ventana Research.

Paul Rodwick, Vice President of Marketing with Siebel Business Analytics said, "The Siebel Business Intelligence Summit will provide a single place where people can learn about the latest strategies and techniques."

Summit participants will be privy to a number of case studies, feature presentations and panels by companies like AXA Financial, Cisco Systems, Compass Bank, Honeywell Aerospace, HP, IBM, LinkShare Corporation, L'Oreal, MCI, Microsoft, Royal Bank of Canada, Sprint, Union Pacific Railroad, UPS, Wachovia and Westpac.

Hosted by Siebel Systems, the event is co-sponsored by IBM, Teradata, Microsoft, and CMP Media's Intelligent Enterprise.

With Presentation Server, local, remote and mobile users can access the application interface over the network from any device. The data center handles administration, minimizes network data, enhances security and reduces bandwidth demands. SmoothRoaming provides uninterrupted access when users change devices, locations and network connectivity status.

Password Manager provides password security and single sign-on access to Windows, Web and host-based applications. Users authenticate once then Password Manager logs into password-protected systems, enforces password policies and automates end-user tasks. This means fast, secure connections and lower support costs.

With the MetaFrame Access Suite, Siebel Systems clients can obtain measurable business and IT benefits including:

• Quick rollout of browser upgrades and patches
• Immediate access to Siebel application upgrades
• Predictable performance on any network
• Faster ROI and fewer demands on IT staff
• Access independent of the device or local browser
• Extended infrastructure life and investment protection