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KANA Named a Leader in Independent Analyst Firm's eService Report, KANA Received High Scores in eService Strategy and Web Collaboration
[March 30, 2005]

KANA Named a Leader in Independent Analyst Firm's eService Report, KANA Received High Scores in eService Strategy and Web Collaboration


MENLO PARK, Calif. --(Business Wire)-- March 30, 2005 -- KANA Software, Inc. (NASDAQ: KANA), a leading provider of Service Resolution Management (SRM) solutions, today announced it is positioned as a leader in The Forrester Wave: eService, Q1 2005, Forrester Research, Inc., March 2005. The company was one of a select group of vendors asked to participate in the evaluation.



The Forrester Wave for eService rates organizations according to three criteria: product offering, strategy and market presence. KANA ranked number one among the industry in overall strategy, and was a leader in both market presence and product offering, resulting in a high placement in the top section of the Forrester Wave. Forrester evaluated each company according to prior reports, user needs and vendor and customer interviews.

The report states, "KANA leads the pack for complex Web collaboration. KANA's 2004 acquisition of Hipbone provided the vendor with the strongest Web collaboration tools of the eService suite vendors, including out-of-the-box transcription to capture complete audit trails of Web collaboration sessions in customer history."


KANA received the highest score in five specific categories contributing to its overall placement as a leader in the report. These categories include:

O Agent collaboration;

O Email response management;

O Interaction tracking and customer history;

O Sales and implementation strategy;

O Systems integrators.

"KANA's position atop the leader section in the Forrester Wave for eService further validates the strength of our service resolution management vision and the high market demand for our products," said Brian Kelly, executive vice president of products and marketing at KANA. "KANA understands the next wave of customer service will focus on the resolution process, and we provide strong products that effectively meet this need while reducing the overall contact center costs for our customers."

About KANA

KANA is the leading provider of Service Resolution Management (SRM) solutions that improve customer satisfaction, reduce service costs, and increase revenues. KANA's award-winning suite of customer service solutions for assisted, self, and proactive service enables companies to resolve customer requests quickly and accurately across multiple channels. Built on the industry's most advanced Web architecture, KANA's solutions are in use at more than half of the world's largest 100 companies. For more information visit www.kana.com.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995:

Information in this release regarding KANA's forecasts, projections, expectations, beliefs, and intentions are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to KANA as of the date of this release, which may likely change, and we assume no obligation to update any such forward-looking statement. These statements include statements about KANA's customers' expected benefits and results from KANA applications. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, but are not limited to: competition in our marketplace, including introductions of new products or services, or reductions in prices, by competitors; risks associated with lack of market acceptance of KANA's products or services; inability to enhance and develop our products and services within budget and on schedule; inability to attract and retain qualified employees, to manage cash and expenditures or to expand sales; inability to manage our business in light of recent personnel reductions; KANA's history of losses; the effect of potential military action and terrorist activities; and slow economic conditions, particularly as they affect spending by our prospective customers on SRM and similar enterprise software products. These and other factors are risks associated with our business that may affect our operating results and are discussed in KANA's filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q.

NOTE: KANA is a registered trademark of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.

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