HP looks to shut out Oracle with Salesforce deal

New CRM contract could be in the offing for SaaS company

HP is set to sign a major deal with Salesforce in what could be a blow to Oracle. According to press reports, the computer giant is looking to ditch its CRM software, Oracle Siebel and sign a deal with Salesforce to support 35,000 to 40,000 seats.

If the deal comes through it would be the culmination of a couple of simmering feuds: HP would be giving a fingers-up to its former chief executive Mark Hurd, who joined Oracle as co-president, after resigning from HP after sexual harassment accusation. And new HP CEO Leo Apotheker was embroiled in a vicious legal battle with Oracle when he was CEO of SAP.

The deal, however, would not be about settling scores. According to one analyst, quoted in International Business Times, moving to Salesforce would save HP a hefty slice of cash. "Contacts tell us that by moving to Salesforce, HPQ may be saving 40 percent - 50 percent over ORCL Siebel," Trip Chowdhry, an analyst at Global Equities Research is quoted as saying.

Chowdry, whose analyst note started the rumours, added that the Salesforce was hoping to announce the deal at its forthcoming Dreamforce event.

Both HP and Salesforce would not comment on the reports but the SaaS company has been bullish about its prospects. The company has just announced the results of its third quarter has reported revenues of $429 million, an increase of a whopping 30 percent year on year. The company said that it was on course to deliver $2 billion in revenue in 2012.

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