Siebel has completed its acquistion of hosting company UpShot for $50 million in cash.
Siebel claims the completion of the takeover means that it has gained one of the industry's most successful hosted CRM solutions, enhanced Microsoft Office and Outlook integration, and more than 100 employees experienced in developing and administering hosted products. Furthermore, with the addition of approximately 1,000 customers, Siebel Systems advances its product leadership in the hosted CRM market, a market estimated to exceed $2.7 billion by 2006.
The company says that it will offer Siebel CRM OnDemand plus Siebel CRM OnDemand--UpShot Edition, with a roadmap to converge the best of both products. UpShot customers can continue indefinitely with the Siebel CRM OnDemand--UpShot Edition product. They will also be offered a next generation hosted CRM product that combines the strength of Siebel's product architecture and the UpShot functionality and best practices for hosted CRM.
"The acquisition of UpShot by Siebel Systems significantly alters the CRM landscape. Siebel gains immediate recognition that they are seriously investing in the on demand market. UpShot customers not only gain investment protection, but also a more scalable platform built upon J2EE and IBM WebSphere," said Sheryl Kingstone, Yankee Group.