Siebel, IBM Make It Official On Hosted CRM

The duo is collaborating on web-based Siebel CRM OnDemand, a hosted CRM costing $70 per user per month. As such it contends with a popular hosted CRM solutions from Salesforce.com and NetLedger.

News of the two companies' collaboration was first reported in July by CRN. Timing of the official announcement comes just a week before the annual Siebel User Week conference in San Diego

Since the dissolution last year of Siebel's partnership with Microsoft Business Solutions, Siebel has been seeking out ways to penetrate smaller mid-market accounts where its enterprise-class CRM is viewed as overkill.

Customers can sample the new offering, to be available later this quarter, with a 30-day free trial, both companies said.

IBM has other irons in the fire: It already partners with Onyx Software on a hosted CRM offering. And, it has other joint efforts underway with Siebel as well. IBM has pledged to support Siebel's Universal Application Network integration strategy and Siebel has blessed IBM's WebSphere and DB2 offerings.

In the past, IBM Software has pointed to its alliances with Siebel, PeopleSoft and other software vendors as proof that it is a better partner than Microsoft, which competes with partners in applications. But, IBM's tendency to launch alliances with some partners and not others may put that strategy to the test by appearing to favor some ISV partners over others, observers have said.