ASPnews Home

News

Analysis

Trends

Strategies

ASP Directory

Community

About Us

Search ASPnews:



internet.com
Developer
Downloads
International
Internet Lists
Internet News
Internet Resources
IT
Linux/Open Source
Personal Technology
Small Business
Windows Technology
xSP Resources
Search internet.com
Advertise
Corporate Info
Newsletters
Tech Jobs
E-mail Offers
internet.commerce
Be a Commerce Partner
Cheap Plane Tickets
Digital Camera Review
Register Domain Name
Memory Flash Cards
Online Education
Batteries
T-Shirts
Remote Access
Advertising Trucks
Online Degrees
Best Digital Camera
Cheap Web Hosting
Digital Camera Review



ASPnews Focus
Top News:
» SOAs So Close, Yet So Far

» Why SaaS Is Making a Comeback

» Join the Discussion: ASPnews.com's industry forums

Plus:
» More ASP News

TOP 50
Top 20 Providers
 & Top 30 Enablers
Free Newsletter!



ASPnews Shortcuts
Week's Top News

ASP News at internetnews.com

Industry Events

Discussion Forums

Industry Basics

Site Guide

Whitepaper: Gateway Antivirus Leader Tackles Spyware With A Unique Multi-Layered Approach. This IDC white paper discusses Trend Micro’s integrated, multi-layered gateway and client security solutions that secure spyware and other threats.

ANALYSIS

Oracle-PeopleSoft Saga: A Market Ripple Effect


Analysis — The stars are aligning for Oracle’s (Quote, Chart) acquisition plans for PeopleSoft, but analysts say customers need to set their compasses to watch all the players in enterprise software applications if the deal goes through.

Two obstacles cleared out of the database software giant’s path to PeopleSoft (Quote, Chart) Friday. The U.S. Department of Justice said it would not appeal a ruling on its antitrust case, and in a surprise move, PeopleSoft’s Board of Directors fired CEO Craig Conway and replaced him with company founder and chairman Dave Duffield.

Sources inside the company say employees are encouraged by the return of Duffield, but still feel like they are smack-dab in the middle of a TV soap opera.

“Dave is a known entity. We know he left when he did because he felt he wasn’t capable of handling a ‘big’ company. Well, we’ve only grown bigger. So there is speculation along the lines of most investors [of a] set up for a buy out,” a PeopleSoft employee, who asked not to be identified, told internetnews.com. “On the other hand, Dave was always fiercely loyal to his customers and his employees, possibly even to a fault. So there is speculation that he’s back and better than ever for PeopleSoft. Only time will tell.”

PeopleSoft spokesperson Steve Swasey told internetnews.com the board of directors would continue to consider Oracle’s offer but gave no timeline. Based on the opinions of its financial partners, Citigroup and Goldman, Sachs, the board has said Oracle’s current offer of $21.00 per share is inadequate. Swasey said trying to figure out the board’s next move would be “purely speculative.”

Analysts interviewed by internetnews.com say the latest events increase the probability of a hostile takeover — perhaps in the next three months. If the merger does go through, however, they contend IBM (Quote, Chart), Microsoft (Quote, Chart), and SAP AG (Quote, Chart) will also influence the Enterprise Application Software (EAS) market.

“Especially IBM. For them it is a win-win situation,” Philip Fersht, Yankee Group analyst and director of the research firm’s Business Applications Group, told internetnews.com “When PeopleSoft agreed to put [IBM’s] WebSphere products in its software, at first we tried to put a positive spin on this with the possibility that IBM would be a ‘White Knight’ with PeopleSoft. When we looked at what IBM wanted to do, all we could tell is that they want to sell WebSphere to more customers. The IBM partnership is more about controlling 70 percent of the Human Resource software market.”

Fersht says IBM is also getting aggressive with its business process outsourcing, where Big Blue provides high level services around PeopleSoft software human capital management software.

Fellow Yankee Group analyst Mike Dominy says SAP is a winner, because even though it will compete more fiercely with fewer players, the raging battle between Oracle and PeopleSoft has allowed SAP to quietly peel off more market share.

SAP’s success could also help Microsoft in its pursuits to grow beyond its mid-market presence, courtesy of Microsoft’s Great Plains platform. Beyond a one-time plan to consider a merger, the two companies have applications that already compliment each other, including Microsoft’s Biz Talk server with SAP’s connectors as well as SAP’s NetWeaver support for Microsoft .NET products and smart client technology. But Fersht also notes that Microsoft is the largest Web services provider hands down, which is of great interest to SAP.

A merger of PeopleSoft and Oracle could also leave smaller players scrambling, according to Yankee Group’s Fersht.

“I would expect to see IBM go into the apps game with a Siebel acquisition or BEA. I just don’t think BEA can now stand up to Oracle if it acquires PeopleSoft. With IBM and BEA they could focus on the integration space and middleware.”

Page 2: Several Obstacles Remain in Path of Merger

Go to page: 1  2  Next  

Email this Article
View Printable Version
Back to Analysis

 

Featured Links
Learn the secrets of the popular search engines!
Free Web Hosting Buyer's Guide -- Click Here!
Enhance your Web site with the Dynamic HTML HierMenus Code


JupiterWeb networks:

internet.comearthweb.comDevx.comGraphics.com

Search JupiterWeb:

Jupitermedia Corporation has three divisions:
Jupiterimages, JupiterWeb and JupiterResearch

Copyright 2005 Jupitermedia Corporation All Rights Reserved.
Legal Notices, Licensing, Reprints, & Permissions, Privacy Policy.

Jupitermedia Corporate Info | Newsletters | Tech Jobs | Shopping | E-mail Offers


Give us your Feedback