Transcript 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
 Main Products
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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!
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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 AntiTrust
 Microsoft
 Larry asked for help, Gates ignored
Results
 Lasted 18 months
 Closed with $10.3B
Oracle VS PeopleSoft:
And the winner is…….
SAP
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
Questions?