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DiamondCluster to restructure European operations     DiamondCluster International announced plans to close two European offices and reduce its global workforce by 6% in order to cut costs.    "We've been looking hard at our international operations, and while we've made progress on many fronts, we have not reached our full potential globally," said Mel Bergstein, DiamondCluster's chairman and CEO.    "After a thorough     evaluation of our international assets, we have determined that we will reduce costs in certain areas and make investments in others to bolster profitable growth for the future," he added.    The restructuring will include a reduction in facilities, support functions, and consulting staff in international locations.    DiamondCluster plans to close its offices in Dusseldorf and Lisbon and downsize its office     in Barcelona. German operations will now be consolidated into a single office in Munich. As a result, DiamondCluster will reduce its global workforce by approximately 6%.    Staff reductions will not be made in North America or the United Kingdom.    The firm will take a related restructuring charge of $8 to $9 million in the September quarter, and expects to achieve associated cost     savings in the range of $6 to $8 million on an annualized basis.    In addition, an adjustment to the restructuring plan implemented in September 2002 will result in an additional charge of approximately $3 million due to a change in the estimate of future sublease income, bringing the total restructuring charge in the September quarter to between $11 and $12 million.    To generate new     growth, the firm is deploying resources to expand its strategic technology-oriented consulting services to key markets in Germany and the Middle East to complement already strong strategy practices. It will continue to serve clients in the telecommunications, financial services, insurance, enterprise and utilities sectors globally.

Oracle becomes world's largest CRM vendor with Siebel acquisition     Oracle Corporation has agreed to buy Siebel Systems for $10.66 per share, sealing its second major acquisition in a year and establishing itself as the world's largest provider of customer relationship management (CRM) software.    The offer is valued at approximately $5.85 billion, or $3.61 billion net of Siebel's cash on hand of $2.24 billion.    In December, Oracle     agreed to buy PeopleSoft for about $10.5bn, after winning an 18-month takeover battle.    "In a single step, Oracle becomes the number one CRM applications company in the world," said CEO Larry Ellison. "Siebel's 4,000 applications customers and 3,400,000 CRM users strengthen our number one position in applications in North America and move us closer to the number one position in applications     globally."    Both firms said the deal was encouraged by customers and shifts in the market where now customers preferred to have an "integrated family of applications that minimises their cost structure."    "This is a customer driven event. Our joint customers have consistently recommended this transaction to both companies for over a year," said Oracle President Charles     Phillips.    While the transaction and the timing are subject to regulatory approvals, the deal is expected to close in early 2006.    The deal is expected to contribute to Oracle's earnings in 2007 and, in the longer term, to the company's goal of 20% annual earnings growth.    Of all major segments of the enterprise applications business, CRM is the largest and     fastest growing - estimated to be more than $8 billion in 2004 and expected to grow to $10 billion by 2009, according to IDC.    Siebel shareholders will receive $10.66 per share in cash for each Siebel share held, unless they elect to receive Oracle stock.

BT and HP alliance to deliver pan-European IT and networking service to Hertz     BT and HP have signed a five-year European IT and networking services contract with Hertz Europe Ltd.    In May 2004, HP and BT formed a strategic alliance to address the convergence of the IT and communications markets (ICT), and the evolution of IT infrastructure to include tightly integrated voice and data networks.        "With the convergence of IT and telecoms, customers are increasingly looking for a single contract for all their IT and telecoms needs," said Francesco Serafini, senior vice president and managing director, EMEA and Technology Solutions Group, HP. "Hertz's decision to work with BT in alliance with HP illustrates this evolution of market     requirements," he added.    Together, BT and HP will supply Hertz with a wide range of IT and networking services. These include an Internet Protocol (IP) based Virtual Private Network (VPN) that utilises DSL access technology to connect Hertz's corporate headquarters with more than 1,100 rental station sites across Europe.        Additionally, BT and HP will support more than 5,000 desktop devices, 3,000 printers and 148 servers and will take over responsibility for outbound voice requirements from and between Hertz headquarter and rental locations. BT and HP will also manage inbound voice services delivered to Hertz's central reservations centre and provide a centrally     managed e-procurement system.    The contract encompasses Hertz Europe Ltd's corporate operations in the UK, France, Germany, Spain, Italy, Belgium, Luxembourg, Switzerland and the Netherlands.

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