Callidus Software: The EIM Road to Recovery, or Maybe Not
Corporate performance shows challenges in execution.
Callidus released their fourth quarter financials, revealing a turbulent year in 2004 for the EIM software provider. Although they have begun to grow license revenue, the unfortunate transparency of being a public company significantly increased corporate and operational pressure resulting in a turn-over in executive ranks and the elimination of its performance management product. Callidus is experiencing increased competition in the EIM solutions marketplace, including expanded solution offerings by Synygy and Centive, and continued pressure from larger application providers such as Oracle, Siebel and SAP. Callidus needs to demonstrate better corporate performance to survive in the market. Ventana Research believes organizations evaluating Callidus Software should pay careful attention to viability issues as vendor consolidation and market dynamics will increase risk in adopting its solution.
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