Great Plains-Siebel Package Cancelled

Citing low sales, Microsoft Great Plains will stop selling a co-branded version of Siebel’s customer relationship management (CRM) software for mid-size businesses when a partnership agreement ends at the end of 2002. The move illustrates the conflicts that could arise as Microsoft enters into application markets previously dominated by partner ISVs.

Great Plains signed the three-year deal in 1999, believing that the product, a co-branded version of Siebel MidMarket known as Great Plains Siebel Front Office, would fill an important hole in its product lineup. Siebel, in turn, hoped to use the well-established Great Plains reseller channel to extend its reach into mid-size businesses. Microsoft inherited the relationship with Siebel when it bought Great Plains in Apr. 2001.

Microsoft claims the decision to drop the product was mutual and had nothing to do with the impending release of MSCRM, Microsoft’s own CRM product for small and mid-size businesses. According to MSCRM General Manager David Thacher, “Both companies have found that the relationship hasn’t provided the business opportunity anticipated.” In addition, says Thacher, Siebel’s decision to move MidMarket to its enterprise code tree in late 2000 meant that the product was no longer well suited to mid-size businesses.