Oracle's Wedding Gift: Siebel Ends On A High Note - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Applications
Commentary
1/27/2006
07:32 PM
Commentary
Commentary
Commentary
50%
50%

Oracle's Wedding Gift: Siebel Ends On A High Note

Oh, the irony. After three quarters of anemic earnings, Siebel Systems pulls a rabbit out of the hat just days before its shareholders are set to vote on Oracle's acquisition of the CRM software maker. Revenue through the roof. Profit up the wazoo. License sales at nearly pre-dot-com-bust levels. Larry Ellison must be feeling pretty good about himself about now.

Oh, the irony.

After three quarters of anemic earnings, Siebel Systems pulls a rabbit out of the hat just days before its shareholders are set to vote on Oracle's acquisition of the CRM software maker. Revenue through the roof. Profit up the wazoo. License sales at nearly pre-dot-com-bust levels. Larry Ellison must be feeling pretty good about himself about now.With the shareholder vote scheduled for Jan. 31, Siebel went out with a bang in what is likely its last earnings report as an independent company, reporting signficant year-over-year increases in revenue (19%), profit (65%), and license sales (34%). This, after customers at its user conference in Boston last October expressed hesitancy about investing further in the company's technology before knowing what Oracle's plans were.

So, did customers suddenly decide that they loved Oracle's Project Fusion integration road map? Did CEO George Shaheen, the longtime board member who stepped in after the firing of Mike Lawrie last April, find his mojo as an inspirational leader? Or, did Siebel's sales force, the end of their era bearing down on them with no guarantees of being retained by Oracle, kick into overdrive?

My money's on the last, because it's simply the most logical of the possible explanations. And there's no reason Oracle should care one way or the other. Ellison bought Siebel first and foremost for its customer roster, and now that roster has been solidified by new commitments from existing customers and bolstered by dozens of new customers that signed on during the quarter. Of course, topping off the more than $2 billion in cash Oracle gets in the transaction doesn't hurt either.

Oracle's task now will be to do something with Siebel's newfound momentum. It's a long way from delivering a CRM app architected for Fusion, so it will be relying on Siebel's current technology to provide its near-future CRM growth. At least Siebel has managed to give it a bit of a head start. It's Oracle's ball to run with now.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
Slideshows
Flash Poll