HP may shut out Oracle with Salesforce deal

New CRM contract could be in the offing for SaaS company

HP is reportedly set to sign a major deal with Salesforce, replacing the Oracle CRM systems it runs.

According to press reports, the computer giant is looking to ditch its CRM software, Oracle Siebel and sign a deal with Salesforce to support 35,000 to 40,000 seats.

Observers have said that if the deal comes it would add fire to two simmering feuds. One is over former chief executive Mark Hurd, who joined Oracle as co-president, after resigning from HP after sexual harassment accusations. Another concerns new HP CEO Leo Apotheker who was embroiled in a vicious legal battle with Oracle, which concluded yesterday, when he was CEO of SAP.

The deal, however, would not be about settling scores, analysts said. According to one analyst, quoted in International Business Times, moving to Salesforce would save HP money.

"Contacts tell us that by moving to Salesforce, HPQ may be saving 40 per cent - 50 per cent over ORCL Siebel," Trip Chowdhry, an analyst at Global Equities Research is quoted as saying.

Chowdry, whose note started the rumours, added that the Salesforce was hoping to announce the deal at its forthcoming Dreamforce event next week.

Both HP and Salesforce would not comment on the reports but the SaaS company has been bullish about its prospects. The company has just announced the results of its third quarter has reported revenues of $429, an increase of 30 per cent year on year. The company said that it was on course to deliver $2 billion in revenue in 2012.

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Maxwell Cooter

Computerworld UK
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