View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 28, 1999

IBM Extends Siebel Deal to E-Biz App Integration

By CBR Staff Writer

By William Fellows

IBM Corp and CRM giant Siebel Systems Inc have extended their existing agreement to cover out-of-box integration with IBM’s e- business software plus co-marketing, co-selling and joint development. IBM will quickly become Siebel’s most important revenue stream now that 4,700 IBM sales people in addition to Siebel’s 250 field sales staff will be peddling the 119 CRM products Siebel offers. But chairman and CEO Tom Siebel backed away from characterizing his company as an IBM shop. The deal is not exclusive and except in certain circumstances the two will not actually resell each other’s products.

The deal marks the end of IBM’s own CRM initiative. Last year it turned its Software Artistry products picked up with Tivoli Systems together with other acquired CTO software in a division called CorePoint. That division has gone and products have been canned, with the exception of the CTI work. IBM’s Bill Etherington, SVP and group executive of sales and distribution told ComputerWire it quickly became clear that it was beyond our capability to turn [CorePoint] into a Siebel.

First fruits of the development agreement will be seen in the March release of Siebel 2000 which will include integrated support for IBM MQSeries messaging, WebSphere web application servers and support for DB2 on S/390. Integration with IBM’s application framework, net.commerce and computer telephony integration products will follow.

Integration with IBM’s business intelligence software is not part of the new deal but it’s likely to follow as closing the loop on ERP, CRM supply chain and analytics is now a key driver in the development of the enterprise software market. Etherington warned that tying CRM to analytics through a CrossWorlds-type enterprise application integration or XML is not there yet, but said IBM is looking at it. Where a customer requires an analytics product we will sell them IBM says Etherington.

The co-selling compensation model they will both use says that each salesperson records a win whoever actually inks the agreement. They will focus on finance, insurance, communications and consumer packaged goods markets but will not limit themselves to these.

The companies’ current agreement extends to integration on DB2 and consulting and services which IBM sells to Siebel customers; implementation and integration are said to soak up 75% of the cost of any CRM engagement. Siebel says its software isn’t being optimized to perform better on IBM kit although in reality it does anyway.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Siebel says it is already embracing the ASP model with its US Internetworking, ICL and Corio deals and is happy enough for IBM to push its CRM software through its newly-created ASP programs. IBM won’t be using CRM internally, even in its CRM division, it has written its own CRM package for that job.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.