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.
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!"
Neil Davey is the managing editor of MyCustomer. An experienced business journalist and editor, Neil has worked on a variety of newspapers, magazines and websites over the past 15 years, including Internet Works, CXO magazine and Business Management. He joined Sift Media in 2007.