E2open Inc (EOPN)’s Third Quarter Fiscal 2015 Financial Results Conference Call Transcript

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Mark Woodward
Well in almost any situation SAP is involved. In certain industries or certain and after that it changes based on kind of either industry or geography. So we, in this particular case I know SAP was probably our biggest competitor and I don’t recall if there was another player in there or not.

Brendan Barnacle
Have you seen SAP becoming more aggressive or more active in the space?

Mark Woodward
No, I think they from time to time they change their strategy but all in all really nothing much has changed. I think as we had expected to see after the acquisition of Ariba, they will try to position Ariba as a procurement tool, which it is, but it’s not a supply chain tool. So their strategy sometimes will be to get customers to front end procurement as the most important thing that they do, and try and buy time for them to catch up. I mean that’s just the classic SAP strategy forever which is three years from now they are going to they will do more than they do now but I have been here for six years and still three years in the future. So I mean that strategy really hasn’t changed too much. But we do see them when they are installed trying to make a lot of commitments to things that they can’t do today, and we usually combat that either through references or through pilot tests.

Brendan Barnacle
Great, thanks, that helps clarify that. I want to follow up on your earlier comments about the personal changes you made in sales. So you eliminated a layer of management and then you consolidated a layer of management, is that right?

Mark Woodward
Yes, we eliminated a layer and then we reduced from three to two regions in North America, and also made a change in one of those managers in North America as well.

Brendan Barnacle
So you brought in a new leader for one of those groups?

Mark Woodward
Yes, actually well promoted someone internally.

Brendan Barnacle
You promoted somebody internally.

Mark Woodward
Yes.

Brendan Barnacle
And then did you terminate anybody through all this?

Mark Woodward
We did.

Brendan Barnacle
Okay, great. And then I think it was after last quarter you promoted the guy who’s been the head of services to be head of the joint business. Is that the transition that was creating the difficulty in scrubbing the pipeline?

Mark Woodward
So the Head of Service took over the Head of Worldwide Sales. And so through that process we kind of did a real scrub on the pipeline with a different set of eyes, actually with the new organization if you will. And yes, it kind of came up with some what I would just say business that was forecasted that with a different view probably should not have been.

Brendan Barnacle
Got it. Okay, that’s great. So this is sort of the ongoing fallout from the issues that you were seeing over the summer?

Mark Woodward
Right.

Brendan Barnacle
So that typically takes a quarter or two to kind of wash itself through. Okay, that helps provide the clarity. Thanks so much.

Mark Woodward
Yes, okay.

Operator
Thank you. Our next question comes from the line of Richard Davis with Canacord. Please proceed with your question.

Richard Davis – Canacord
How many — you pushed the bunch of your business out the professional services partners and things like that. Do you — how many SIs will be trained and how many in the deals in your pipeline are kind of customer professional services aided in terms of how much are they helping you on that side of the equation?

Mark Woodward
Well our focus from the kind of the SIs is really still just three. It’s Accenture, primarily Accenture in Europe, and then KPMG and PWC here in North America, and I would say we are seeing more traction with KPMG than PWC. In terms of how much of our pipeline is aided or were they involved, honestly I don’t have that number, I don’t want to say, I am going to guess.

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