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Siebel Systems, Inc. to Acquire Ineto
Services, Inc.

Siebel Extends OnDemand Model to Deliver First Completely Hosted
Contact Center Solution Integrated with Industry Leading CRM

SAN MATEO, Calif. – January 20, 2004-Siebel Systems, Inc., a
leading provider of multichannel business applications software,
today announced that it has signed a definitive agreement to
acquire Ineto Services, Inc., a leader in delivering hosted contact
center solutions. This acquisition will enable Siebel CRM OnDemand
to remove the need to buy and integrate complex telephony hardware
and software, thereby enabling companies of any size to deploy a
world class contact center at a fraction of traditional costs.

Today’s successful contact center needs several tightly
integrated components to deliver superior quality of service.
Traditionally, companies have had to invest in telephony equipment
to intelligently route calls to the correct agent and to prioritize
customer inquiries. The telephony equipment – which typically
includes an automatic call distributor (ACD), interactive voice
response (IVR) platform and computer telephony integration (CTI) –
is the most expensive investment for building a contact center. The
implementation, configuration and ongoing management of such a
complex infrastructure demands costly resources and specialized
expertise. Few small- and medium-sized businesses can afford to
procure all of the hardware necessary to create a best-of-breed
contact center.

As the industry’s first end-to-end hosted multichannel customer
service solution, the combined offering will enable small, medium
and large organizations to take advantage of the benefits of a
hosted model, while realizing the benefits of Siebel’s world-class
CRM. Companies will be able to choose the hosted solution and avoid
capital investments in telecommunications infrastructure and
software. Instead, they would pay a monthly subscription fee with
the option to quickly add call center agents and other users as
needs arise.

Siebel will tightly integrate Ineto Services‘ hosted telephony
infrastructure with its Siebel CRM OnDemand product to further
fulfill the „CRM for Everyone“ strategy. The combined offering will
deliver a true virtual contact center, allowing customer service
representatives to work anywhere. It also will enable companies to
quickly scale – regardless of location – to meet increased call
demand for seasonal peaks, focused marketing campaigns or other
business drivers. This on demand contact center solution will also
be able to be used to complement existing Siebel on premise
implementations, giving companies the ability to add agents for
seasonality or peak demands.

„With the Ineto Services acquisition, we are further expanding
CRM OnDemand,“ said Mark Sunday, Senior Vice President, Information
Technology and Chief Information Officer at Siebel Systems. „With
Ineto Services‘ hosted telephony infrastructure integrated with our
CRM OnDemand product, we are providing small- and medium-size
businesses a one-stop-shop to implement an industry-leading call
center, quickly and reliably.“

Contact Center OnDemand Solution
This hosted customer communications service will provide integrated
telephone, voicemail, call monitoring and call recording in a
browser-based application, eliminating the need for costly
premise-based infrastructure. The new product will enable Siebel to
deliver on its comprehensive CRM OnDemand vision and provide a true
hosted multi-channel communication solution on demand. This
solution will solve all of a company’s inbound as well as outbound
contact center needs, supporting voice, voicemail, IVR, email,
chat, and fax communication channels. These multiple channels will
be fully integrated with CRM OnDemand, delivering one easy to learn
user interface and robust CRM integration, including: screen pops,
call logging and skills based call routing. Customers will benefit
from Siebel’s industry leading contact center best practices and
world class analytics.

„While Siebel CRM OnDemand enables anyone with a computer and
Internet connection to have access to world class CRM, this
integrated offering will enable anyone with a computer, Internet
connection and standard telephone or cell phone to be part of a
world class call center,“ said Ineto Services, Inc. president, CEO
and co-founder Mike Betzer. „Whether the company is a small-or
medium-sized business or a division of a large enterprise, Siebel
CRM OnDemand with Ineto Services, Inc. will deliver all of the
capabilities of a traditional contact center in a robust, hosted
solution.“

Siebel Systems has used strategic acquisitions to extend its
leadership several categories, including marketing automation, with
the acquisition of Paragren Technologies (2000); product
configuration, with the acquisition of OnLink Technologies (2000);
customer analytics, with the acquisition of nQuire Software (2001);
incentive compensation, with the acquisition of certain assets of
Motiva (2003), and hosted CRM, with the acquisition of UpShot
(2003). In each instance, Siebel successfully merged the acquired
company or technology into its business to become a market
leader.

Siebel Systems‘ acquisition of Ineto Services, Inc. is currently
expected to close by January 30. Under the terms of the deal, up to
$5 million will be paid in cash following the closing. The
acquisition is subject to customary closing conditions.

For more information, visit www.siebel.com.

About Siebel CRM OnDemand
Siebel CRM OnDemand is a hosted CRM offering delivered over the Web
and accessible from an internet browser, at a fixed price per user
per month. Customers can deploy Siebel CRM OnDemand quickly,
easily, and affordably, without any upfront IT investments. Siebel
CRM OnDemand delivers complete sales, marketing and service
functionality, built-in customer analytics, embedded best
practices, and world-class hosting services and support.
Siebel CRM OnDemand is the industry’s first and only hosted CRM
solution designed to work in conjunction with „on-premise“ Siebel
CRM systems. Sharing a common data model with Siebel 7
applications, Siebel CRM OnDemand offers an easy migration path to
on-premise Siebel CRM systems. Siebel CRM OnDemand incorporates a
User Interface (UI) designed to maximize user success and adoption
without extensive training.

About Siebel Systems
Siebel Systems, Inc. is a leading provider of multichannel business
applications software, enabling corporations to sell to, market to,
and serve customers across multiple channels and lines of business.
With more than 3,500 customer deployments worldwide, Siebel Systems
provides organizations with a proven set of industry-specific best
practices, CRM applications, market-leading analytics products, and
business processes, empowering them to consistently deliver
superior customer experiences and establish more profitable
customer relationships. Siebel Systems‘ sales and service
facilities are located in more than 30 countries.

About Ineto Services, Inc.:
Ineto Services, Inc. is a privately held company based in Austin,
Texas, and Colorado Springs, Colorado. Ineto Services optimizes
customer communications by providing companies with a simple to use
multi-channel contact center solution. Ineto Services integrates
telephone, voicemail, ACD IVR, e-mail, and web-based communications
in a browser-based application, eliminating the need for a
premise-based infrastructure. With Ineto Services all incoming
communications are intelligently routed to the correct department
or agent regardless of location. Agents can access customer history
and accept all incoming communications using a standard telephone
and Internet-connected PC.

Except for the historical information contained herein, this
press release contains forward-looking statements that involve risk
or uncertainties. Future operating results of Siebel Systems may
differ from the results discussed or forecasted in the
forward-looking statements due to factors that include, but are not
limited to, risks associated with assumptions and uncertainties
relating to the proposed acquisition of Ineto Services, Inc.,
customer relations, such as the availability of Siebel Systems‘
products and services, customer implementation of products and
services, relationships with customers, third-party vendors and
systems integrators, concentration of revenues in a relatively
small number of customers, existence of errors or defects in
products, ability to successfully manage growth, significant
current and expected additional competition, and the need to
continue to expand product distribution and services offerings.
Further information on potential factors that could affect the
financial results of Siebel Systems are included in Siebel Systems‘
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and its
other filings with the Securities and Exchange Commission, which
are available at www.sec.gov. Siebel Systems assumes no obligation
to update the information in this press release.

Siebel is a trademark of Siebel Systems, Inc. and may be
registered in certain jurisdictions. All other product and company
names mentioned are the property of their respective owners and are
mentioned for identification purposes only.