Feeds

PeopleSoft says Oracle is atrocious

Take your bid somewhere else

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

There was no shortage of disgust from the PeopleSoft camp after Oracle made a less than exhilarating bid for the company last week.

PeopleSoft executives digested Oracle's offer for a couple of hours before issuing a curt press release. The statement made clear that the CEO's office objects to the deal and put earlier rhetoric from Oracle into question.

PeopleSoft CEO and President Craig Conway described Oracle's $5.1 billion bid as "atrociously bad behavior from a company with a history of atrociously bad behavior."

The contrast between Oracle and PeopleSoft's take on this transaction is remarkable. Conway describes Oracle as a trouble-making bully, but Larry Ellison speaks fondly of his chats with Craig.

"Craig approached me," Ellison, CEO of Oracle, said during a conference call. "His idea was that we would create an all new company which would combine the Oracle application business with PeopleSoft's application buesiness . . . We thought it was a good idea to put the two businesses together, but again, we didn't come to an agreement, so we've made this offer."

Conway sees the recent circumstances in a much different light, portraying Ellison's vitriol as an attack on the J.D. Edwards buy announced earlier in the week. PeopleSoft plans to snag the assests of J.D. Edwards for $1.7 billion.

"PeopleSoft has gained market share against Oracle in the past few years, and earlier this week announced its intent to acquire J.D. Edwards, a leader in mid-market enterprise applications," Conway added in the statement. " Obviously it is a transparent attempt to disrupt the acquisition of J.D. Edwards by PeopleSoft announced earlier this week."

Some analysts are calling the 5 percent premium Oracle is offering PeopleSoft an outright insult. The low bid, if it's not an opening shot, does seem to back Conway's assertion that Oracle wants to disrupt the J.D. Edwards buy and little more.

In addition, Oracle is not painting a pretty picture for future PeopleSoft employees or customers. Support will go on, yes, but sales of new PeopleSoft product will be slowed and then replaced by Oracle code. This hardly seems like a way to make friends during the tense, complicated acquisition process.

Ellison did a make a plea to customers and shareholders during the conference call. He assured users that Oracle's support services will far exceed those of PeopleSoft. Oracle sells software. PeopleSoft sell software. How hard can it be.

For the investors Ellison said: "We think the PeopleSoft shareholder, when faced with the alternative -- again, what we view as a risky merger with J. D. Edwards, the PeopleSoft shareholder will look at the $16 a share and think that's a good price and a very, very safe alternative."

In a pressure-filled, consolidating software market, Oracle is using low-bid tactics to make PeopleSoft appear weak and vulnerable. Oracle wants a big chunk of the PeopleSoft business to help boost revenues, so why not make a rival appear on edge.

The PeopleSoft camp, however, may see this as a clear sign that Oracle is feeling the heat from a smaller rival.

A flood of details in this saga lurk behind the scenes and will trickle out sooner or later. Perhaps then we'll know whether Ellison is up to his showman tricks or if he's as brutal a businessman as they say. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.