Oracle vs. Peoplesoft
Oracle vs. Peoplesoft. Andus Hui Jason Hirko Travis Zach May 2, 2007. Oracle. CEO Larry Ellison Main Products Database Management System Tools for database development Database application products; e.g. , Oracle Financials. Database and application services. Peoplesoft.
Oracle vs. Peoplesoft
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Oracle vs. Peoplesoft Andus Hui Jason Hirko Travis Zach May 2, 2007
Oracle • CEO • Larry Ellison • Main Products • Database Management System • Tools for database development • Database application products; e.g., Oracle Financials. • Database and application services.
Peoplesoft • Main Products • Human Resource Management • Customer Relationship Management • Enterprise Performance Management • Enterprise Resource Planning (ERP) • PeopleSoft Enterprise
Trends • Oracle • First mover advantage Relational Database Management System (RDBMD) large market share. • Became wealthy during the 80s-90s • Failed to renew its core product • PeopleSoft • Healthy growth • Great competitor to SAP in the ERP market
Larry Ellison’s Ideas • EXPANSION! • WebTV? • Storage? • GIS? • …..
How about………… ERP!
Why ERP? • Productivity Paradox • As new information technology is introduced, worker productivity may go down, not up • Solution • Business Process Re-engineering (BPR) • With ERP • Best business practices are built-in • Guide for reengineering your business process
The (Hostile)Takeover • June 6, 2003 • $5.1B cash offer ($16 per share) • June 18, 2003 • $6.3B cash offer ($19.50 per share) • February 3, 2004 • $9.4B cash offer ($26 per share)
PeopleSoft’s Response • Strongly opposed • “Poison pills” • Multiple law suits
Oracle’s Strategy • Keep on upping the bid…... • Reassurance to end users • Continuing support after the acquisition • In fact, we will “over support” • Make the transition very easy • Multiple law suits
Other Parties Involved • J. D. Edwards • Acquired by PeopleSoft in the beginning of the hostile takeover • Department of Justice • Received numerous law suits regarding Anti-Trust • Microsoft • Larry asked for help, Gates ignored
Results • Lasted 18 months • Closed with $10.3B
Oracle VS PeopleSoft: And the winner is…….
SAP’s Thought • Oracle • Generating bad publicity • PeopleSoft • One less competitor • BUT……….
Oracle-SAP Relationship • SAP • Before the acquisition: • partnered with Oracle with their ERP system/Oracle database combination • After the acquisition: • Opened up the ERP system to work with any database • SAP and Oracle are partners and rivals
Recent News • Oracle • Losing share in the database market • Not doing that much in the ERP market • Released PeopleSoft HCM 9.0