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IBM and Epiphany enter pact

IBM and software maker Epiphany said Monday that they've agreed to jointly develop and sell computer systems for automating customer service and marketing. As part of the agreement, the companies will sell as a package Epiphany's customer relationship management applications with IBM hardware, middleware and database software. IBM plans to offer consulting services for installing the technology as well.

Epiphany, which competes against Siebel Systems, SAP and PeopleSoft, missed earnings and revenue targets in both quarters this year. The company gains a powerful marketing partner in IBM as it moves to drum up business amid a dramatic downturn in IT spending by U.S. companies.