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Subject: IBM & Siebel Systems, Inc.


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IBM's WebSphere Business Integration software
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Date Posted: 11:35:01 01/02/03 Thu
In reply to: CAT+Proton 's message, "June 2001 American Express adoption Proton Prisma JavaCardsmart cards, including Blue." on 09:30:12 01/02/03 Thu

Mixed Forecast for IT Spending
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By Kimberly Hill
www.CRMDaily.com,
Part of the NewsFactor Network
January 2, 2003

CIOs likely will buy fewer discrete applications for particular functions, such as CRM or supply chain management. Aberdeen predicts that 2003 will witness the success of "composite applications" that automate business processes from beginning to end.

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IBM & Siebel Systems, Inc. announce a joint solution for customer-driven business process integration. Take the interactive tour to see how Siebel's Customer Best Practices & IBM's WebSphere Business Integration software can maximize profits & operational efficiency for your enterprise.
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News relating to future purchase patterns bodes both good and ill for the IT industry, according to a recent Aberdeen Group report. The research firm predicts that IT spending will increase 4 percent over last year in 2003. The United States will have a slightly slower rate of growth at 3.6 percent.

The spending increase will benefit some software companies to the exclusion of others, report author Hugh Bishop told CRMDaily.com. The growth will not be across the board, he stressed, and the going will be tough for some companies as competition continues to thin the ranks of software vendors.


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A Dismal 2002

The final numbers for the year just ended support what everyone already knew: Enterprise software took an enormous hit in 2002. According to Aberdeen, IT spending grew less than 1 percent during the period -- essentially not at all, compared with the double-digit expansion of the late 1990s.

The convergence of factors that created that exponential growth likely will not occur again. Such circumstances as Y2K retooling, venture capital investment, and efforts by traditional enterprises to compete with dot-com rivals fueled the bubble that eventually burst.

However, Aberdeen analysts locate a turnaround in the third quarter of 2002. During that period, IT spending in the United States increased 3.4 percent over the same quarter in 2001, and globally the growth totalled 2.8 percent.

CRM Industry Shifts

Bishop said he is not "entirely negative" about the CRM software segment in the coming year, but that the industry is experiencing a fundamental shift that will change both software design and deployments.

"The nature of CRM purchases is going to tend toward the smaller deal size, a model more along the lines of Salesforce.com," he predicted.

Deloitte Consulting partner Mark Peacock agreed, telling CRMDaily that CRM purchases will be very focused in 2003. This trend is pushing CRM buying away from suite software and toward point solutions, and is placing a high premium on integration strategies.

Peacock is fond of using the "eating an elephant one bite at a time" analogy. Companies still must improve customer service to remain competitive, he said, but they will do so with more strategy and an eagle eye toward tangible business results.

Composite Apps Trend

CIOs likely will buy fewer discrete applications for particular functions, such as CRM or supply chain management. Aberdeen predicts that 2003 will witness the success of "composite applications" that automate business processes from beginning to end -- customer-facing order-to-cash applications, for example.

"Hybrid" supply chain vendors will be more successful than their software-only counterparts, Aberdeen said. Those that evolve to serve the integration and consulting services needs of customers will have a better shot at survival than those that do not, according to the research firm's 2003 predictions.

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