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*A Last Hurrah For Cambridge Technology?

As its acquisition by Novell nears finalization, Cambridge Technology Partners Inc. picked up Lockheed Martin Corp.'s Management & Data Systems division as a client. Cambridge is working to develop a strategy that will leverage the unit's existing IT resources and intellectual capital to lower overhead and reduce operating costs. Management & Data Systems, a $1.7 billion operating company within Lockheed Martin, is seeing increased competition for its government software-development and systems-integration services from nontraditional competitors such as IBM Global Services, as well as service-provider partners of Oracle and Microsoft, says Sondra Barbour, Management & Data Systems' eTransformation manager. Previously, Management & Data Systems was more likely to compete with rivals such as Raytheon Co. and Boeing Co.

Management & Data Systems is adopting Cambridge's proposal that it standardize on Microsoft as a common technology platform; it will replace an existing company intranet written using tools from Epicentric Inc. with one created with Microsoft's SharePoint portal server. The new intranet will debut in August, giving employees a personalized view of benefits and payroll information. Management & Data Systems also will stop offering primarily customized IT services for its clients and begin prepackaging applications and services.

Cambridge's work with Management & Data Systems is more a reflection of the consulting firm's past than its future. Novell's acquisition of Cambridge for $266 million in stock is expected to be finalized in mid-July. Tom Rodenhauser, lead analyst with Consulting Information Services, doesn't expect Cambridge to continue offering digital business strategy once Novell absorbs it.

Although former Cambridge president and CEO Jack Messman has taken over as Novell's CEO, Rodenhauser says it's more likely that Cambridge will assume the role of providing supporting services for Novell's networking products.

-- Larry Greenemeier ([email protected])

Loudcloud Has A Stormy Quarter

Managed services provider Loudcloud Inc. last week reported a net loss of $60.3 million, or $1.25 per share, on $11.7 million in revenue for its first quarter of fiscal 2002, ended April 30. That compares with a net loss of $14.6 million on $86,000 in revenue for its year-ago first quarter. The company widened its losses from $58.8 million, or $1.90 per share, on $8.9 million in revenue for the fourth fiscal quarter of 2001, ended Jan. 31.

Loudcloud's silver lining for the quarter was $42 million in contracts with Ford, Network Appliance, and USA Today. The company also ended the quarter with $205 million in cash.

Loudcloud continues to win new business, but the many dot-com customers it has lost have mostly offset the new gains, says Mark Langner, a senior research analyst at Epoch Partners.

Loudcloud cut its full-year revenue forecast from $75 million to between $53 million and $57 million and said it would likely end the year with about $110 million in cash. It expects revenue of about $14 million, but projects a net loss of $58.5 million to $62.5 million, for its second fiscal quarter.

-- Larry Greenemeier ([email protected])

Siebel Gives Salespeople Apps On The Go

Siebel Systems Inc. last week launched Siebel Sales Handheld to let sales professionals access sales, marketing, and service information via a Compaq iPaq Pocket PC. Salespeople can access and update opportunity, contact-management, calendar, and activity-management functions. They can then synchronize updated information via their company networks or modems, and can view and update sales orders.

Siebel isn't the first customer-relationship management software vendor to release wireless capabilities for its suite. Earlier this year, Pivotal Corp. and PeopleSoft Inc. each launched wireless CRM apps, as did smaller CRM players such as Talisma Corp. and Delano Technology Corp.

Having a wireless strategy is important for CRM vendors, although users have yet to sign on. "Vendors not offering wireless capabilities will become increasingly irrelevant over the next 24 months," says Liz Shahnam, VP and director of CRM Infusion for Meta Group. "But organizational adoption of ubiquitous wireless devices is lagging vendor deployments by about 12 to 18 months."

Siebel Sales Handheld for the Compaq IPaq Pocket PC is available now.

-- Jennifer Maselli ([email protected])