I'm sure it was no coincidence that the announcement of Oracle's takeover of one-time rival, the CRM software maker Siebel Systems, happened on the opening day of the user conference for another CRM company, Salesforce.com. I arrived in San Francisco about that same time that Salesforce.com's CEO Marc Benioff was relaying the news to the 3000 or so faithful gathered at the Moscone Centre, so only found out around lunchtime.
The last time I saw Benioff live was four years ago, also in San Francisco. At that time his company was hot property - a fast growth CRM software maker with a hosted application business model that didn't require its users to buy and install software. They were also only charged by the month, without the big upfront licence and implementation fees imposed by most rivals. Back then Salesforce.com was barely 100 people. I interviewed Benioff the day after interviewing Tom Siebel (who explained to me that the reason why he had never visited Australia was that he couldn't see the point in flying 14 hours to see 3% of his marketplace). At that stage Siebel was also a hot company, but with thousands of employees and a market cap of about US$65 billion ...
Benioff was actually one of the first 10 investors in Siebel. The two had worked together at Oracle, and Benioff even went to Tom Siebel in 1998 and suggested that they build Salesforce.com together. Siebel told him to take a hike. Siebel then went and built Sales.com, which subsequently failed, and then had another go at the hosted model within Siebel with Siebel CRM OnDemand. Today Salesforce.com is still hot property, claiming around 300,000 individual users, and Siebel no longer exists ...
(Disclaimer - I am currently in San Francisco as a guest of Salesforce.com)
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