Siebel admits price pressure from "desperate activity" .
Share this content

Tom Siebel has admitted that Siebel is suffering from price-cutting pressure as a results of what he calls “desperate activity in the marketplace”.

"There clearly is price pressure across the board," CEO Siebel said in a conference call with analysts. "People are still very, very cost conscious. Everybody is slashing costs, slashing costs, slashing costs."

Siebel said a number of rival firms were engaging in what he called “desperate pricing” which was impacting on everyone. "There's a little bit of sometimes desperate activity in the marketplace,” he said.

Wary of a previous occasion when commenting on future prospects cost him a large fine, he refused to talk specifically about how the current quarter was progresssing. "The last time I answered that question, I had to pay a $200,000 fine," he said.

"In the last three years, we've seen a number of false starts in this economy that led people to kind of see some opportunity," Siebel said. But the slightest thing - such as the SARS outbreak - "siderails everything "Right now we remain cautious about the short term and midterm. We believe we're poised to grow this thing."

But he added that the PeopleSoft/Oracle wrangle which he previously blamed for making customers pause, is no longer a major factor. although he left himself a get-out clause by adding that if it flared up again it would be “disruptive to the marketplace.”

Last month, Siebel said it was cutting 490 jobs, or almost 9 per cent of its work force. Chief Financial Officer Ken Goldman said the company expects $80 million to $100 million in costs, mostly in the third quarter, to close offices and lay off workers.

About mycustomer.newsdesk


Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.