Friday, February 24, 2006
Should Siebel customers expect a hike in CRM support costs?
Should Siebel customers expect a hike in CRM support costs?: "Oracle Corp. has said many of the right things in trying to reassure panicked Siebel users since it took over the company this month -- namely, that Siebel will be the centerpiece of Oracle CRM moving forward and that customers will continue to receive lifetime support.
But one question remains unanswered: How will Oracle structure its Siebel support and maintenance program moving forward? In a recent conference call with financial analysts outlining Oracle's plans to cut 2,000 employees and Siebel's Nexus project, Safra Catz, co-President and chief financial officer of the Redwood City, Calif.-based company, indicated change was afoot where maintenance is concerned.
'I think Siebel was raising its maintenance [costs] over time and I'll think you'll see some evening out of that,' Catz said, indicating Siebel kept maintenance and support costs lower than Oracle's structure in order to win new licensing deals. 'Siebel's history was to underprice maintenance.'
For more information
Get all the coverage of Oracle's Siebel acquisition
See what advice PeopleSoft users have for Siebel customers"
But one question remains unanswered: How will Oracle structure its Siebel support and maintenance program moving forward? In a recent conference call with financial analysts outlining Oracle's plans to cut 2,000 employees and Siebel's Nexus project, Safra Catz, co-President and chief financial officer of the Redwood City, Calif.-based company, indicated change was afoot where maintenance is concerned.
'I think Siebel was raising its maintenance [costs] over time and I'll think you'll see some evening out of that,' Catz said, indicating Siebel kept maintenance and support costs lower than Oracle's structure in order to win new licensing deals. 'Siebel's history was to underprice maintenance.'
For more information
Get all the coverage of Oracle's Siebel acquisition
See what advice PeopleSoft users have for Siebel customers"
