IBM and Siebel Systems Unite to Deliver Integrated Industry Solutions Powered by WebSphere for New Era of On-Demand Enterprise Computing

Customers to Lower Costs, Accelerate Speed to Market Using Proven CRM Applications and Scalable Solutions Based on Open Industry Standards

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ARMONK, New York & SAN MATEO, Calif. - 28 Jan 2003: IBM Corp. and Siebel Systems, Inc. today announced a sweeping expansion to their long-term alliance to provide enterprise customers with the next generation of integrated industry solutions based on open industry standards.

Customers will more quickly and efficiently deliver value to their businesses by building on the combined industry solution strength of Siebel Systems' market-leading CRM software and IBM's leading platform for open standard integration-the IBM WebSphere software platform. This combination provides the power and flexibility required to swiftly integrate business processes across jointly developed, integrated industry solutions. These solutions will help businesses quickly adapt to changing market demands.

Based on deep industry expertise, these joint solutions embrace proven CRM applications, standards-based technology, compelling service offerings, and best practices, helping the world's largest organizations improve the quality of their customer interactions while reducing the total cost and complexity of ownership.

"At ATB Financial, we strive to personalize every customer interaction across all channels," said Ken Casey, Vice President, Corporate Services and Operations at ATB Financial, which has 450,000 customers. "With Siebel's customer-oriented business processes and functionality, supported by the power and scalability of IBM WebSphere, we can truly deliver products and services that are tailored to specific customer needs and deliver the world-class customer service that our customers have come to expect."

"We chose to work with IBM and Siebel because they have the technology, the track record, the vision, and the leadership we need to support a single, enterprise-wide source of customer information," said Thomas Welke, Vice President of Customer Care, Whirlpool Corporation.

Expanding the successful global strategic alliance, which resulted in more than 1,000 joint customers-including Bank of America, Caterpillar, and Telstra-IBM and Siebel Systems are dramatically increasing their investment in collaborative development to exploit the power of the IBM WebSphere platform. The expanded alliance includes joint development that enables joint sales, marketing, and services for customers in the financial services, communications, automotive, electronics and technology, hospitality, life sciences, consumer goods, retail, and government sectors.

"Through this expanded relationship, we see a unique opportunity to address customers' increasing demand for targeted industry-specific solutions that lower overall IT cost and complexity," said Thomas M. Siebel, Chairman and CEO of Siebel Systems, Inc. "By leveraging the best practices and domain expertise embedded in Siebel eBusiness Applications and the proven capabilities of IBM's WebSphere platform, Siebel Systems and IBM are providing customers with unprecedented scalability, reliability, and availability to meet the requirements of the largest global enterprise deployments."

Steve Mills, Senior Vice President & Group Executive, IBM Software Group, said, "This is a major advancement in our relationship. It demonstrates a significant commitment by Siebel Systems to open standards such as J2EE and Web Services and to WebSphere as its choice for an open software platform. As we move to e-business on demand, the further integration of Siebel eBusiness Applications with IBM's industry expertise, hardware, software, and services will provide a powerful business integration solution for customers, dramatically reducing cost and risk, accelerating deployment and time to value, and improving return on investment."

Comprehensive Joint Development
The expanded alliance will focus on four initiatives:

"Customers implementing the detailed processes and information access demanded by industry-specific CRM will expect vendors to embrace and support a wide range of environments-services, processes, tools, and applications that are often outside the range of any single vendor offering. This requires leveraging packaged software applications, as well as custom-built components and even Web Services, in a way that drives down the total cost of ownership," said Jeff Comport, VP Research, Gartner. "For vendors, the ultimate prize is a share of the untapped $21 billion market for custom CRM software that can come from effectively combining package, platform, and service into a cost-effective and efficient solution."

New Siebel Teller Application Based on IBM WebSphere
IBM and Siebel Systems are launching a new branch teller solution for retail banking, their first solution to leverage IBM Business Consulting Services' deep expertise in branch banking, Siebel CRM industry-specific applications, and the IBM WebSphere platform. For most financial institutions, the retail branch network is the most expensive channel to maintain. IBM-Siebel Branch Teller combines the advanced CRM functionality of Siebel eBusiness Applications with the high performance, scalability, and integration capabilities of IBM WebSphere. This combined solution leverages IBM Bank Teller Components for WebSphere Studio and enables retail banks to transform brick-and-mortar branches into customer-focused financial centers while reducing costs.

"We are impressed with the IBM-Siebel Branch Transformation Initiative," said Ray Holtshausen, Director Group IT, Standard Bank of South Africa. "Siebel Systems' branch CRM functionality combined with IBM Professional Services and WebSphere promises to deliver consistent service across all branch channels-including ATM, self-service, kiosk, and teller."

Alliance History
Today's announcements have at their foundation a three-year strategic alliance. In 1999, IBM and Siebel Systems agreed to jointly market Siebel CRM Applications and deliver "out-of-the-box" integration between IBM's DB2 UDB database and Siebel applications. The two companies agreed to a joint distribution strategy that includes promoting the combined applications and services globally, targeting customers in the finance, insurance, communications, and consumer goods industries. In addition, IBM Global Services has formed a team within its CRM business trained on Siebel CRM Applications to deliver software configuration, integration, training, and customer support for its Siebel applications.

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