BOSTON, June 8 SuccessFactors Inc SFSF.O will
provide Web-based business software for 420,000 workers at
Germany's Siemens AG (SIEGn.DE) in a multimillion dollar deal
that will extend for more than three years.
The transaction is the 10-year-old industry sector's
biggest ever, based on the number of users, SuccessFactors said
Financial terms were not disclosed, but Chief Marketing
Officer Paul Albright told Reuters the transaction would bring
in less than 5 percent of SuccessFactor's annual revenue.
Such programs, known as Software as a Service (or SaaS),
represent a relatively small portion of the overall business
SuccessFactors' rivals include SAP AG (SAPG.DE), Oracle
Corp ORCL.O and privately held Workday. IT researcher Gartner
estimates SaaS revenue will climb 30 percent this year to $6.5
billion, while overall software sales will be flat at $223
Siemens will use SuccessFactors programs for recruiting and
other human resources tasks as well as running an internal
social-networking site, said Albright.
Albright said the deal was among the two largest by value
in the 8-year-old company's history.
(Reporting by Jim Finkle; Editing by Richard Chang)