Callidus Software and IBM expand global strategic alliance to deliver incentive compensation solutions to the pharmaceutical industry

San Jose 10 June 2004Callidus Software, specialized in Enterprise Incentive Management (EIM), and IBM have signed a global strategic alliance to deliver comprehensive incentive compensation solutions to the pharmaceutical and life sciences markets. This initiative builds on Callidus and IBM's existing alliance and track record of success with customers in the insurance, banking and telecommunications industries. Callidus Software and IBM offer life sciences customers comprehensive and industry-specific incentive compensation solutions that align employee and channel partner performance with corporate objectives.


Companies in the life sciences industry are operating today in an environment of increasingly complex sales channels and sophisticated commission structures. To stay competitive and increase profitability, they need to implement an incentive system that offers great flexibility in compensation plan design and extreme scalability in handling plans with thousands of participants and millions of daily transactions. The joint IBM and Callidus Software solution is uniquely suited to address pharmaceutical companies' specific requirements and provides the capability needed to maximize their return on investment.

"Corporate alignment and sales effectiveness are key challenges facing the pharmaceutical industry today. By developing and managing a strategic incentive compensation strategy, pharmaceutical companies can increase profits and improve sales productivity and performance while reducing costs", stated Richard J. Riegel, vice president for solutions marketing, IBM Healthcare and Life Sciences. "Callidus' EIM solutions, combined with IBM's open infrastructure products as well as our consulting and integration services, provide a total solution for life sciences companies that want to streamline and automate their incentive compensation systems."

Under the terms of the agreement, the two companies will jointly market the Callidus TrueComp solution to help pharmaceutical and life sciences customers accelerate Enterprise Incentive Management implementations, making use of IBM's e-business on demand infrastructure and Callidus? rules-based Grid computing architecture that provides scalability on-demand. Optimized on IBM WebSphere, DB2 Universal Database and eServer pSeries, the joint IBM and Callidus EIM offering not only meets pharmaceutical organisations' requirements for scale and flexibility, it can also offer a lower total cost of ownership due to the outstanding performance of IBM's hardware and software stack. As part of the alliance, Callidus will continue to leverage IBM's deep expertise and solid relationships in the pharmaceutical market to extend its reach. Additionally, IBM will provide business consulting, customization and integration services for the joint IBM and Callidus solutions.

"Our global strategic alliance with IBM has been a powerful asset in delivering successful implementations of Enterprise Incentive Management solutions to our joint customers", stated Christopher Cabrera, senior vice president of Callidus Software. "As pharmaceutical companies continue to realize the benefits of developing an appropriate incentive strategy, Callidus and IBM will work together to ensure that our joint customers continue to leverage EIM systems to maximize their business objectives and build shareholder value."

The strategic alliance with Callidus Software is another example of IBM's commitment to go-to-market with independent software vendors (ISVs) through the PartnerWorld for Developers programme. Under this initiative, IBM has signed agreements with recognized software experts. These alliances target industries such as financial services, retail, pharmaceutical, manufacturing, along with solution segments including enterprise resource planning, supply chain management, customer relationship management and business intelligence. The goal is to provide developers with access to new customers and revenue opportunities through IBM's marketing, sales, and solutions resources. In return, developers commit to lead with IBM's middleware, server platforms, and services in offerings to customers.

Founded in 1996, Callidus Software is an enterprise incentive management (EIM) provider to global companies across multiple industries. Callidus' EIM systems allow enterprises to develop and manage incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp Grid architecture, Callidus delivers the industry's only EIM solution that combines the power and scalability of Grid computing with the flexibility of rules-based interface. Customers and partners include AOL Time Warner Corporation, AT&T Wireless, BMC Software, CUNA Mutual, DIRECTV, Dun & Bradstreet, IBM, JP Morgan Chase & Co., Pennzoil-Quaker State Company, SBC Communications and Sun Microsystems.

Leslie Versweyveld

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