BOSTON, June 8 (Reuters) - 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 on Monday.
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 software market.
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 billion.
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)