Sun, Siebel Retain Close Ties

Two Silicon Valley-based mainstays inked a deal Monday that helps bolster each other’s core software platforms.

Sun Microsystems and Siebel Systems said they have signed a “multifaceted” software development agreement designed to make sure Siebel eBusiness Applications runs flawlessly on Sun’s Solaris operating system and a few select Sun ONE software products. Financial terms of the agreement were not disclosed.

The multiyear software integration and collaboration agreement builds on their three-year relationship and is part of Sun’s plan to develop and distribute Java-based Web services, which the Santa Clara, Calif.-based network computer maker has been evangelizing for several years.

“The message here is all about Sun and Siebel making sure that customers can rely on superior products and services that are highly available and integrated to reduce cost and complexity,” Sun CEO Scott McNealy said in a statement. “Customers don’t have to spend time integrating Sun ONE software with Siebel eBusiness Applications — we’ve done it for them.”

The expanded partnership includes Siebel Systems’ support for the new Sun Cluster 3.0 High Availability (HA) Agent and simplified management with the SunPlex environment. Siebel says it is validating the Sun ONE Identity Server 6.0 with Siebel 7.5. The two companies are also working to validate Sun ONE Portal Server 6.0 with Siebel Employee Relationship Management (ERM) 7.5, a corporate strategy tool. Siebel also pledged support for the Sun ONE Web Server, Sun ONE Directory Server, and Sun ONE Messaging Server.

“Many of our customers rely on Siebel applications and Sun infrastructure to make their companies more customer-centric and competitive,” Siebel chairman and CEO Tom Siebel said in a statement. “With this software development agreement, we’ll be able to ensure that customers integrating best-of-breed applications from Sun and Siebel realize the quickest possible return on their investment.”

The two companies started working together in 1998 and entered into a global strategic alliance in 2001 including global marketing campaigns and regional sales promotions. In addition, Siebel Systems is a Premium Member of the Sun Vendor Integration Program (SunVIP), which lets customers running Siebel eBusiness Applications on Solaris have a single point of support. Something McNealy often refers to as “one throat to choke.”

Siebel is in need of some radical support considering the San Mateo, Calif.-based firm announced a
67 percent drop in its second-quarter earnings and the termination of about 490 employees in July 2003.

Part of Siebel’s rebuilding strategy includes hedging its bets with Sun’s main rivals. Back in October 2002, the e-business player named both Hewlett-Packard and BEA Systems to its Siebel Alliance Program. More recently, Siebel renewed its partnership with IBM . The three-year deal, at an estimated to cost $300 million, will use more than 200 developers working on making Siebel applications run smoothly on IBM’s WebSphere platform.

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