ASP Part II-Siebel buys Upshot, Motiva

Siebel Buys UpShot, Motiva

If you can’t beat ’em, join ’em. On an earlier post, I commented on the return of the ASP model. It looks like Siebel is jumpstarting its efforts on the ASP side with its purchase of Upshot for $50mm + $20mm of earnout for 2003 and 2004. For an industry-changing hosted CRM play, that does not seem to be a hefty price. Let’s see what happens with Salesforce.com when and if it goes public next year. Word has it that Salesforce.com is expecting to do $100mm of revenue in 2003 while being profitable for the last 2 quarters.

Speaking of CRM, it is interesting to look at 2 other eCRM players, Kana, an enterprise vendor, and LivePerson, an ASP. At one point in time, Kana was worth $5b to LivePerson’s $300mm market cap. Today Kana is worth $105mm and LivePerson is at $135mm. The consensus analyst estimates have Kana losing ($0.54) this year and ($0.01) next year while LivePerson is forecasted to have EPS of $0.01 this year and $0.10 next year. It looks like profitability and operating leverage finally count. The luster of the ASP model seems to have returned to the public markets.

Published by Ed Sim

founder boldstart ventures, over 20 years experience seeding and leading first rounds in enterprise startups, @boldstartvc, Saas 2.0, googlization of IT, security, smart data; cherish family time + enjoy lacrosse + hockey