HP to ditch Oracle with Salesforce deal

HP is set to ditch customer relationship management (CRM) software partner Oracle by making a major replacement deal with Salesforce.

The potential deal, which could be seen as a slight on Oracle, will see Oracle’s Siebel CRM software being cast aside road while Salesforce takes the driving seat. 

It is expected that the Salesforce software will support between 35,000 and 40,000 seats.

There have been tensions between HP and Oracle over the last several months, mainly over Oracle recruiting former CEO of HP, Mark Hurd, who was embroiled in a sex scandal as co-president.

Couple that with a long-standing legal feud between Oracle and SAP, which ended yesterday with SAP being ordered to pay out $1.3 billion in damages. HP’s new CEO Leo Apotheker was formerly the CEO of SAP and has been reportedly on the run from Oracle’s legal hounds over the past few weeks.

It’s hard not to see the possible replacement of Oracle’s software as an attempt to get back at the company over past hurts, but it looks like money may be, as usual, the motivator. Global Equities Research analyst, Trip Chowdhry, stated that HP would save between 40 and 50 percent by switching from Oracle to Salesforce.

The deal is expected be announced at Salesforce’s Dreamforce conference next week but it has yet to be confirmed by either party.