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Oracle Prevails in Tender Offer
(6/15/2004) Ascet Volume 6
By Robert Kugel, Ventana Research
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Summary

November 22, 2004 - There may still be some twists and turns left in Oracle's attempt to acquire PeopleSoft. Yet, for those who have not already done so, it is time to start planning for a post-takeover environment. We advise companies that had been planning to purchase software from PeopleSoft to look elsewhere. Companies that rely heavily on PeopleSoft applications must secure the best contractual relationship possible at this point. Firms where PeopleSoft is not strategic should plan to migrate to something else within the next several years. Corporations with a mature and stable HR and financials environment should leave well enough alone for now and concentrate on software that supports initiatives to improve their compliance activities, manage innovation and enhance profitability.


Although the future is clearer today than before, there are still many unanswerable questions as to what the PeopleSoft installed base should expect from Oracle in years 1,2,3 and 4 following the close of the transaction. After some initial bellicose remarks from Chairman Ellison, the company has made it clear it intends to support the installed base for several years. Since the devil is in the details, it is hard to know whether and for which companies this level of support will be adequate.


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