VARs unsure of Siebel effect

Channel partners have reacted with uncertainty to Oracle's recent $5.8bn acquisition of Siebel

Channel partners have reacted with uncertainty to Oracle’s recent $5.8bn acquisition of Siebel.

The deal, which is still subject to a vote by Siebel’s shareholders and is set to close in early 2006, will create the world’s largest CRM applications vendor with access to 3.4m customers, according to Larry Ellison, Oracle’s chief executive.

However, the deal was met with apathy by rival CRM vendor SAP. Nicole Anderson, director of business development at SAP UK and Ireland, remained unconcerned.

“The acquisition is not a threat to us and will not change our commitment to the channel. Our CRM value is roughly 47 per cent of market share and our licence and customer revenue market share will also continue to grow,” she said.

VARs had a mixed reaction to the move. Anna Morgan, marketing manager at VAR Compelsysao, said: “This is both an opportunity and a threat to partners. The opportunity for Oracle CRM is good because it fills the blanks in Siebel’s portfolio. However, Siebel traditionally work with the biggest partners and smaller VARs need to ensure they still have tight partnerships with the combined firm.”

Phil Anthony, Oracle solutions manager at Repton, said: “When I spoke to Oracle it wasn’t even sure what the channel effect would be, but I think eventually we will see a fusion of the two vendors’ products.”