Feeds

Oracle discounts revealed in court

Depends how much competition there is...

  • alert
  • submit to reddit

Build a business case: developing custom apps

Oracle was in court yesterday trying to overturn the Department of Justice decision that it can't buy PeopleSoft.

But video evidence from Oracle exec Keith Block revealed that the database giant is prepared to cut prices by as much as 70 per cent - because of competition from other vendors. The DoJ is opposed to the deal because it believes it will reduce enterprise software providers from three to two. According to the DoJ, Oracle, PeopleSoft and SAP are the only players in this market.

Block said Oracle never discusses price until it is sure it can offer the customer what it wants.

Block also said Oracle was planning a stripped-down version of its software to sell to medium-sized businesses. Government lawyers said this undermined Oracle's claims that there is no difference between selling to large and medium businesses.

The court also heard evidence from Richard Bergquist, PeopleSoft's chief technology officer, who testified that Oracle and SAP are the main competition it sees for big customers. But Oracle lawyers introduced PeopleSoft documents which named Lawson Software as a serious threat. Bergquist also admitted that there was no clear definition of what the market was or the kind of customers they were going after.

He told the court he believed Microsoft would enter the market for enterprise software in 2006 or later. Microsoft yesterday said that it held talks on a possible takeover of SAP late last year.

Oracle first made its hostile bid for PeopleSoft in June 2003 with an offer to shareholders of $5.1bn. This was rejected by the PeopleSoft board. In November 2003 the EC announced it was to investigate the proposed deal. In February 2004 Oracle raised its offer to $9.4bn but was again rejected by the board. The Department of Justice then filed a civil anti-trust suit to try and scupper the deal. Even if Oracle convinces the court in the US still has to satisfy European regulators that the deal is good news for consumers. ®

Related stories

Oracle trial gets boost from Microsoft
US gov and Oracle in court
PeopleSoft: the real ale analogy

Maximizing your infrastructure through virtualization

More from The Register

next story
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Do YOU work at Microsoft? Um. Are you SURE about that?
Nokia and marketing types first to get the bullet, says report
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Chrome browser has been DRAINING PC batteries for YEARS
Google is only now fixing ancient, energy-sapping bug
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.