What's to guide. If the tone of their cc is correct, they have set up the new product to enter the market place by building the product, setting up testing, setting up OME relationships, rebuilding the sales force which will be complete once Niku6 enters the market in OCT, and have placed the finances on a firmer base giving them a 3 quarter burn rate assuming Niku6 sells nothing. According to their projections there will 40+Mil in the bank at the time Niku turns cashflow positive. This implies a revenue estimate for Niku6 sales in the coming quarters which I'm sure a sharper pencil than I could back out of the given figures.
Would have liked to hear a follow up to the last question re salesforce training and their competion. They noted that there is no pricing presure (suggesting Niku is competitively a better value) but there is the problem that SAP ORCL PSFT SEBL are more stable and have better name awareness. The question to ask is how are they training their sales force to overcome this lack of name recognition? ... and what are the differenciating benefits which they feel will close the sale.
As a market, SRM or SPO (as Gartner/Novient call it), has been poorly defined and business plans poorly executed to date in general. This has opened doors for SEBL, ORCL, PSFT, etc. The issue is that the market segment that exists in between the CRM and ERP spaces is in search of an identity.
NIKU, Novient, Evolve, et al, have made vain attempts to explore this vast middle ground with any real success. The big boys are sitting tight to see if any Pull is created by the "rabbits" that initially hit the space. In true dot-com fashion, the rabbits are running out of gas and the big guys will have their pickings at a low price if they elect to buy vs. build.
PSFT has made some acquisitions (eRoom, etc.) and SAP is a partner of sorts with Novient. Surprised Novient did not pursue a tighter alliance with MSFT, since that is the only environment on which they can deploy!
NIKU's challenge will be to build customer confidence by building both a world-class product and a world-class team to sell/implement/support it. Too bad NIKU IPO'ed before they learned the art of running a successful business.
Competing against the big guys will not be a problem if they have the right solution and have built the right partnerships.