Siebel Takes (Another) Shot at ASP Model

The Move to Software‑as‑a‑Service: IBM and Siebel Partnering Up

After months of speculation, IBM and Siebel have formally stepped into the on‑demand, hosted CRM arena. The joint offering, called Siebel CRM OnDemand, signals a shift from the traditional software licensing model toward a subscription‑based approach. For firms that have grown weary of managing heavy installations, the move presents an opportunity to offload infrastructure concerns while still gaining access to Siebel’s robust CRM capabilities.

Siebel’s earlier foray into the ASP world with Sales.com ended abruptly, leaving many to question whether the company could sustain a cloud‑based product. The new collaboration with IBM aims to remedy that by leveraging IBM’s deep experience in hosting, delivery, and support. The partnership will cover everything from development and marketing to day‑to‑day sales and service, ensuring that customers receive a unified experience without juggling separate vendor relationships.

The decision to re‑enter the ASP market is widely seen as a defensive counter to the rising popularity of Salesforce.com. As the leading SaaS CRM platform, Salesforce has captured a significant share of the SMB and mid‑market segments. Jim Dickie of CSO Insights points out that the new offering is largely a response to that momentum. He notes that enterprise‑level customers - those in Fortune 500 ranks - continue to favor in‑house control of their CRM systems for reasons ranging from data security to integration with legacy processes.

Even so, the partnership is not without risk. Siebel’s history shows that market conditions can shift quickly. The company’s previous attempt at a hosted solution was cut short, and skepticism remains high. Yet the re‑launch provides a fresh narrative: this time the product will be built with modern cloud infrastructure and backed by IBM’s service commitments. The narrative shift - from a once‑failed product to a well‑supported, joint offering - may help rebuild confidence among potential adopters.

Beyond the marketing angle, there are concrete reasons why a cloud‑based CRM might appeal to certain segments. Deployment speed is a key driver: companies can get up and running in days instead of weeks or months. Ongoing maintenance costs are predictable, tied to a monthly fee rather than unpredictable license and support expenses. These benefits create a compelling proposition for firms that want agility without sacrificing the depth of Siebel’s functionality.

It’s important to recognize that the partnership does not automatically guarantee dominance over competitors. Salesforce, Microsoft Dynamics 365, and other incumbents have fine‑tuned their cloud offerings over years of customer feedback. The success of Siebel CRM OnDemand will depend on how well the product can differentiate itself in features, integration, and price while keeping the promise of minimal startup effort.

In short, the IBM‑Siebel alliance represents a bold attempt to re‑enter a crowded market with a product that promises to combine Siebel’s rich CRM heritage with IBM’s hosting reliability. The outcome will hinge on execution and the ability to meet the evolving needs of both large enterprises and smaller firms looking for a cost‑effective, scalable solution.

Price, Features, and Deployment: What Siebel CRM OnDemand Brings to the Table

At a cost of $70 per user per month, Siebel CRM OnDemand positions itself as a competitive alternative to existing SaaS CRM options. For many organizations, that price point is in line with, or slightly lower than, comparable offerings from Salesforce and other vendors, especially when factoring in the absence of upfront licensing or hardware costs.

The subscription fee covers hosting, maintenance, and regular updates, meaning customers can focus on their core operations. The promise of “practically zero start‑up time” is not just marketing speak; it reflects a design philosophy that prioritizes rapid deployment. Companies can create accounts, configure basic settings, and begin entering data in a matter of hours. This approach addresses a key pain point for firms that have struggled with lengthy rollout timelines in the past.

Siebel CRM OnDemand offers a comprehensive suite of capabilities, including contact management, lead tracking, competitor analysis, product catalog management, pricing tools, marketing campaign orchestration, and service request handling. The breadth of features is one of the platform’s strongest selling points. For organizations that require a full‑featured CRM without the overhead of managing an on‑premise installation, the solution delivers a familiar Siebel experience in a cloud‑native environment.

The platform’s analytics engine is another highlight. Built‑in dashboards provide actionable insights into sales performance, pipeline health, and customer engagement. These visual tools can help sales teams identify bottlenecks, prioritize opportunities, and measure the impact of marketing initiatives. By integrating data across the entire customer journey, the system supports more informed decision‑making.

In addition to standalone cloud benefits, Siebel CRM OnDemand supports a hybrid approach. Companies can later migrate to an on‑premise Siebel CRM solution if their strategic direction changes. The migration path is designed to preserve data integrity and minimize disruption, offering a safety net for firms that may eventually need or prefer on‑premise control.

Integration capabilities are critical in today’s ecosystem. The OnDemand offering supports standard protocols and APIs, enabling seamless connections to ERP systems, marketing automation tools, and other enterprise applications. The ability to embed the CRM within existing workflows without significant redevelopment costs can be a decisive factor for businesses wary of vendor lock‑in.

Finally, the partnership’s commitment to shared service responsibilities - covering development, sales, marketing, and support - signals a unified front. Customers benefit from a single point of contact for all service inquiries, reducing the complexity often associated with multi‑vendor environments.

Market Dynamics: The ASP Landscape and Where Siebel Fits In

The SaaS CRM market is crowded, with Salesforce.com, Microsoft Dynamics 365, and others dominating the conversation. Those vendors entered the market early, designed their platforms from the ground up for cloud delivery, and focused on small to mid‑size businesses. They offer feature sets tailored to the immediate needs of sales teams, such as contact and lead management, basic analytics, and mobile access.

When Siebel launched Sales.com, the product was heavily weighted toward enterprise capabilities. It provided advanced reporting, multi‑currency handling, and deep integration with Siebel’s own on‑premise suite. While powerful, those features were often more than what SMBs required, leading to a mismatch between product complexity and customer demand.

Now that IBM and Siebel are collaborating on a new ASP offering, the platform must strike a balance between robust functionality and user‑friendly deployment. If the solution can truly “architect from day one to meet the needs of the SMB market,” as some analysts suggest, it could carve out a niche segment. However, competing vendors have already honed their products for that same audience, making differentiation difficult.

Another factor shaping the market is the growing expectation for continuous delivery. Customers anticipate regular updates, security patches, and feature additions. The partnership’s joint responsibility model promises that the platform will evolve quickly, but it also relies on both companies’ coordination and resource allocation. Any lag in updates could erode confidence.

Large enterprises, meanwhile, continue to favor internal CRM deployments. They value the ability to customize the system extensively and maintain strict control over data security. For these organizations, the cost of managing an on‑premise solution - hardware, staff, and maintenance - remains a compelling reason to stay away from SaaS alternatives. Siebel’s OnDemand offering, with its price point and integrated services, may not fully overcome that barrier.

When assessing the competitive landscape, it’s worth noting that the ASP market is no longer a zero‑sum game. Companies can coexist by focusing on distinct value propositions: some specialize in rapid deployment for SMBs, while others deliver deep customization for enterprises. Siebel’s strategy will depend on whether it can offer a differentiated blend of enterprise‑grade features and cloud‑friendly deployment.

Ultimately, the success of the IBM‑Siebel collaboration will hinge on a few key variables: the speed and reliability of the platform, the quality of customer support, the cost‑effectiveness of the subscription model, and the ability to demonstrate real business value to decision makers.

Industry Voices: Expert Opinions on Siebel’s Cloud Comeback

Jim Dickie of CSO Insights views the move as a defensive strategy, primarily aimed at keeping pace with Salesforce’s growth. He notes that most Fortune 500 companies still prefer in‑house CRM solutions, but he acknowledges the growing demand for low‑overhead options among smaller firms.

Paul Greenberg, president of The 56 Group, highlights that the ASP market has moved beyond the early days of experimentation. He suggests that the validation of the software‑as‑a‑service model is now solid, and that Siebel’s return is part of that broader acceptance. Greenberg’s stance is more optimistic, yet he maintains that Siebel must deliver a product that is truly built for the cloud, not merely transplanted from an on‑premise design.

CRMGuru panelist S. Premkumar, formerly with Fugen IT, emphasizes the potential for a strong middle‑market presence. He cautions that success hinges on correctly architecting the offering for SMB users, which means simplifying processes, reducing learning curves, and focusing on the core functions that salespeople need daily.

Critics remain skeptical. Marc Benioff, CEO of Salesforce.com, expressed concern that a company with a legacy of selling expensive, enterprise‑grade software would struggle in the subscription world. He argues that the historical business model of Siebel - relying on maintenance fees and license renewals - does not align with the expectations of modern SaaS customers.

Bob Thompson, founder of CRMGuru.com, echoes that skepticism. He draws parallels between the struggles of full‑service computer companies like IBM and HP against efficient rivals such as Dell. Thompson predicts that Siebel’s ASP solution will face an uphill battle, especially if it cannot match the agility of established cloud vendors.

Across these perspectives, a common thread emerges: Siebel’s ASP venture will need to combine enterprise‑grade capabilities with the simplicity and speed of true cloud delivery. The platform’s ability to achieve that balance will ultimately determine its market traction.

Looking Ahead: Integration, Growth, and the Competitive Edge

Siebel CRM OnDemand’s built‑in analytics and integration options position it to become a useful hub in a company’s digital ecosystem. By enabling connections to ERP, marketing automation, and other enterprise systems, the platform can streamline data flow and reduce manual entry. This integration focus is likely to attract organizations that value a unified view of customer interactions across departments.

From a growth perspective, the joint partnership with IBM provides a strong foundation for scaling operations. IBM’s global data centers and service networks can support a rapid rollout to new regions, while Siebel’s brand recognition offers credibility among potential clients. Together, they can capitalize on both the demand for cloud services and the need for trusted technology partners.

Competition will remain intense. Salesforce, for instance, has invested heavily in artificial intelligence and predictive analytics, features that appeal to data‑driven sales teams. Microsoft’s cloud‑native Dynamics 365 benefits from deep integration with Office 365, providing a familiar environment for many enterprises. Any gap in feature parity or user experience could influence purchase decisions.

However, the market also presents opportunities for differentiation. Siebel can leverage its long history of customization to offer advanced configuration options for industries that require specialized processes, such as manufacturing or financial services. Additionally, the hybrid migration path to an on‑premise solution could attract firms that need a phased approach to digital transformation.

In terms of pricing, the $70 per user per month model positions the product competitively, but it must also reflect the value delivered. Transparent pricing, predictable costs, and a clear return‑on‑investment metric will be critical to win over decision makers who weigh the cost against benefits such as increased sales productivity or improved customer satisfaction.

Ultimately, the success of Siebel CRM OnDemand will be measured by its ability to attract new customers, retain existing ones, and maintain a steady stream of revenue growth. The partnership’s shared commitment to development, marketing, and support offers a promising framework, but the execution will determine whether the product can stand out in a crowded cloud‑CRM landscape.