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Smaller makers of customer relationship management software in Silicon Valley have been able to put a few chinks in the armor of industry leader Siebel Systems Inc., according to thirdquarter results to be released later this month, an industry analyst says.
San Mateo-based Siebel is the largest of several CRM software companies tracked by Patrick Mason, senior research analyst at Pacific Growth Equities, a San Francisco investment firm. While bigger than most, Siebel has been wounded by declining sales, and other companies are exploiting its vulnerability.
"[Siebel's] revenue is still substantial but not as exciting as it used to be, so others have a chance to go in and make a sale," says Mr. Mason.
Customer relationship management software-which helps companies keep track of customer accounts, handle requests for support and manage other efforts to keep customers happy-is suffering along with other aspects of information technology spending by businesses.
Some enterprise customers are still buying CRM software to run their companies as efficiently as possible. But in general, spending on IT has slowed dramatically.
Siebel has suffered...