1 / 20

Oracle vs. PeopleSoft

Oracle vs. PeopleSoft. Ryan Martin Sean Ogle Tiare Packard 5/16/06. Overview. Who are Oracle and PeopleSoft? What is ERP? Why did Oracle acquire PeopleSoft? What has happened since the acquisition?. Oracle. Founded in 1977 Larry Ellison is CEO

damali
Télécharger la présentation

Oracle vs. PeopleSoft

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Oracle vs. PeopleSoft Ryan Martin Sean Ogle Tiare Packard 5/16/06

  2. Overview • Who are Oracle and PeopleSoft? • What is ERP? • Why did Oracle acquire PeopleSoft? • What has happened since the acquisition?

  3. Oracle • Founded in 1977 • Larry Ellison is CEO • One of largest developers of “Database Management Systems”

  4. PeopleSoft • Founded in 1987 by David Duffield • Provides software to thousands of large companies and governments • Specializes in ERP solutions

  5. Enterprise Resource Planning (ERP) • Management Information Systems that integrate all or part of a business’s operations or production/service • “Back office” systems • Best practices and re-engineering process • Very expensive to implement • “Productivity Paradox” applies

  6. Why Does Oracle Want PeopleSoft? • Oracle is #1 in databases, but losing to SAP in ERP systems • PeopleSoft had the capabilities Oracle needed • Oracle wanted to gain market share and ensure long-term growth

  7. Oracle Needs PeopleSoft! • Oracle’s need for ERP leads it to wanting to acquire PeopleSoft • Lack of options • PeopleSoft does not want to be bought • Becomes tactical fight

  8. PeopleSoft’s Reaction • Buys JD Edwards - Friendly merger • $1.7B • Becomes bigger and more expensive to acquire

  9. PeopleSoft’s Reaction Cont’d. • Poison pill • Reduced support = 2x to 5x fees for purchase • Stock trick = dilute stock to take away ownership • Power shift towards directors rather then shareholders

  10. Oracle’s Reaction • Insists and raises bid - Hostile takeover • Original bid $16/share • June 03- 2 weeks later $19.50/share • Feb 04- Raise 33% to 9.4B or $26/share

  11. DOJ Gets Involved • Feb 2004 Department of Justice: Anti-trust • SAP and Microsoft • Involvement? Sat back and watched • Denied because software companies that make ERP software for "mid-market" customers also compete for those same "large complex enterprises."

  12. After DOJ Rejects • May 04- Lower to $7.7B or $21/share • Nov 04- $9.4B or $24/share • Dec 04- Final bid @ $10.3B or $26.50/share • PeopleSoft accepts @ 100% above original bid

  13. Oracle’s Concerns • Largest merger in software industry history • Concerns over keeping PeopleSoft’s culture and employees • Founder David Duffield had “Kill Oracle” pep rally

  14. Results of the Oracle|PeopleSoft Merger • January 2005: Oracle laid off nearly 50% of PeopleSoft’s 11,000 employees • 90% of PeopleSoft product development and support employees retained • Project Fusion • The final integration of Oracle and PeopleSoft/J.D. Edwards products • Final product available in 2008

  15. Oracle: Trouble in Paradise • Two issues to deal with 1. Database computing is a mature technology 2. Competition between established providers is fierce and smaller competitors are entering market

  16. 1. Mature Technology • Traditional database firms such Oracle and IBM • Struggle to gain new customers • Systems designed for “structured” data • Running Models • Number Crunching • Forecasting • Time to innovate, but how? • Day Software: developed a system for “unstructured” data • Audio files • Images • Web video content • Documents (ex. Word or Excel) • Trend towards ‘diskless’ databases (much faster; will benefit tremendously from 64-bit computing)

  17. 2. Competitors • Biggest threat is small players offering innovative improvements on current products • New entrants into market • Oracle’s solution: Buy them…

  18. Oracle’s Innovation Strategy • Project Fusion • Offering open source software (i.e. Linux) • Buy out competition • Reaching out to different markets

  19. Oracle’s Shopping Spree • December 2004: PeopleSoft- ERP ($10.0B) • March 2005: Oblix- Identity Management (undisclosed amt) • April 2005: Retek- Retail software ($670M) • June 2005: Triple-Hop- Context search • July 2005: Context Media- Content Integration ProfitLogic- Demand analysis • August 2005: i-flex- 41% share Indian banking software • September 2005: Siebel Systems- CRM ($5.85B) • October 2005: Innobase- Storage engine • November 2005: Thor Tech & OctetString- Identity Management • January 2006: 360Commerce • February 2006: SleepyCat- Open-source • April 2006: PortalSoftware- Billing software (£225M)/($450M)

  20. Sources • http://www.oracle.com/corporate/press/2004_dec/acquisition.html • http://www.sap.com/company/pdf/BWP_AR_Greenbaum.pdf • http://www.theregister.co.uk/2003/11/11/oracle_chokes_on_peoplesofts_poison/ • http://www.zpub.com/un/un-le.html • http://money.cnn.com/2004/12/13/technology/oracle_peoplesoft/ • http://en.wikipedia.org/wiki/Oracle_Corporation • http://en.wikipedia.org/wiki/Peoplesoft • http://www.fool.com/News/mft/2005/mft05031820.htm • http://www.eweek.com/category2/0,1874,1743371,00.asp • http://www.eweek.com/category2/0,1738,1780193,00.asp • http://www.eweek.com/article2/0,1895,1752305,00.asp • http://www.informit.com/articles/article.asp?p=458692&seqNum=1 • http://www.line56.com/articles/default.asp?NewsID=6431 • http://www.line56.com/articles/default.asp?NewsID=6454 • http://www.dmreview.com/article_sub.cfm?articleId=1009161

More Related