Oracle "furious" as HP drops Siebel for Salesforce.com

Oracle "furious" as HP drops Siebel for Salesforce.com

Hewlett Packard's relations with Oracle are unlikely to improve as speculation mounts that Salesforce.com is set to replace Siebel as HP's CRM provider. 

According to Trip Chowdhry of Global Equities Research, HP will drop Oracle's Siebel CRM and take a subscription for up to 40,000 seats of Salesforce.com.

Chowdry said: "HPQ is completely shutting down Oracle Siebel, which contacts tell us has made Oracle (ORCL) very furious. Contacts tell us that by moving to Salesforce, HPQ may be saving 40-50% over ORCL Siebel."

Assuming the deal is signed in time, Chowdhry predicts that HP CEO – and former SAP CEO – Leo Apotheker will make an appearance at Salesforce.com's Dreamforce conference in San Francisco in early December.

Relations between Oracle and HP have declined rapidly in recent months as Oracle CEO Larry Ellison mounted public attacks on the firm for sacking his friend Mark Hurd as CEO. Hurd subsequently joined Oracle.

Ellison has also criticised HP for allegedly trying to keep Apotheker away from a court case battle between SAP and Oracle. Now that Oracle owns its own hardware business, the two former technology partners seem to have drifted further and further apart.

For Salesforce.com, a win over Oracle at HP would be a major talking point. Chowdry suggests it would enable CEO Marc Benioff to "claim to the Enterprise World that Salesforce.com is the New Oracle; just like Google is the New Microsoft; and Microsoft is the New Xerox!"

Comments

Sounds like an episode of Eastenders!

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