Oracle still hot to purchase PeopleSoft
Fox News: Oracle Corp. said on Thursday its hostile bid to buy PeopleSoft Inc. would cost about $1 billion more because its target is issuing new shares to acquire J.D. Edwards & Co.

I'll give Larry Ellison credit for one thing, persistence. The man doesn't know when to say “I give up.”

I think Ellison is way off base in thinking the purchase of PeopleSoft will be a good move for Oracle. A fair number of PeopleSoft customers would bail if Oracle takes over, while most customers would probably just wait things out until they're forced to make a decision. If Ellison's claim that they're not interested in forcing PeopleSoft customers to switch to Oracle are true, then how much money can one make off of maintenance contracts alone? And how many of those customers will continue to pay for their maintenance contracts since there won't be much in the way of upgrades to PeopleSoft apps? PeopleSoft customers chose PeopleSoft over Oracle and other ERP vendors' packages, just as Oracle customers chose Oracle 11i over PeopleSoft applications. So, why force customers to choose a software package they didn't feel compelled to go with in the first place? People normally don't like the feeling of being forced into a decision. That is why I predict a mass exodus from Oracle by former PeopleSoft customers if Oracle takes things over. SAP has to have quite a large grin on its face right about now. Oracle's plan could back fire and actually help SAP become an even bigger gorilla in the ERP space. Amazing.
Posted on 07/25/03 - Category: Technology

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