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August 10, 2001

In this Issue:

CRM Rivalry

The Itanium Way

Peaceful Coexistence

CRM Rivalry

PeopleSoft 8 CRM tests Siebel's market dominance

In Brief

Shaken and Stirred. Blue Martini Software Inc. has inaugurated the Blue Martini Developer Network at developer.bluemartini.com, where programmers can find technical information and an online community.

Remedy for Peregrine. Peregrine Systems Inc. has agreed to acquire Remedy Corp. for about $1 billion. The merged companies will unify their technologies for creating business Web applications, including the B2B Integrator suite Peregrine obtained after acquiring Extricity Inc.

Value Chain Analytics. PricewaterhouseCoopers (PWC) is offering an iAnalytics (Integrated Analytics) solution. PWC said iAnalytics will help companies integrate information across their entire value chain, including CRM, supply chain, and e-business systems.

HP & SAP SCM. Hewlett-Packard and SAP AG have expanded their relationship to offer supply chain management and supplier management capabilities for global customers and trading partners.

EXcelon and C-bridge Union. XML platform provider eXcelon Corp. and e-business consultancy C-bridge Internet Solutions have agreed to merge and concentrate on the enterprise commerce management market.

Can PeopleSoft Inc. take on CRM market leader Siebel Systems Inc.? With the launch of its PeopleSoft 8 CRM at the PeopleSoft Leadership Summit 2001 in Las Vegas in June, the company is betting that its product, promoted as the first and only CRM solution to offer embedded analytics, an entirely Web-based architecture, and integration with enterprise data and business processes, is up to the challenge.

Embedded analytics may be PeopleSoft 8 CRM's most influential feature. Craig Conway, PeopleSoft CEO and president, believes that it makes sense to display service-level analytics in the call center module and product warranty analytics in the customer service module. In Conway's view, this development is analogous to the advent of integrated spellcheckers in word processing apps.

PeopleSoft 8 CRM supports enterprise collaboration by integrating customer-facing apps to supply chains and other enterprise systems, according to the company. Stan Swete, senior vice president and general manager of PeopleSoft CRM, said that PeopleSoft can also integrate with products from vendors such as SAP AG, ships with multiple connectors, and includes XML capabilities. Furthermore, PeopleSoft recently announced extended platform support for IBM DB2, which Forbes.com believes may present a "potent combination against Oracle and Siebel" (June 1, 2001).

Conway predicts that PeopleSoft can catch up to current CRM leader Siebel within 18 months. However, Gateway Inc. (one of PeopleSoft's biggest customers through its 1999 Vantive acquisition) is now moving to Siebel. Conway's strategy is to target existing Vantive customers and then clients with no current CRM implementation. Morgan Stanley & Co. estimates increases for Siebel and also predicts strong support for PeopleSoft 8 CRM within PeopleSoft's current customer base. Perhaps there's room in the CRM market for both vendors.

— Michelle Nichols

In this Issue:

CRM Rivalry

The Itanium Way

Peaceful Coexistence