Feeds

Oracle discounts revealed in court

Depends how much competition there is...

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

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

Providing a secure and efficient Helpdesk

More from The Register

next story
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
iOS 8 release: WebGL now runs everywhere. Hurrah for 3D graphics!
HTML 5's pretty neat ... when your browser supports it
Mathematica hits the Web
Wolfram embraces the cloud, promies private cloud cut of its number-cruncher
Mozilla shutters Labs, tells nobody it's been dead for five months
Staffer's blog reveals all as projects languish on GitHub
'People have forgotten just how late the first iPhone arrived ...'
Plus: 'Google's IDEALISM is an injudicious justification for inappropriate biz practices'
SUSE Linux owner Attachmate gobbled by Micro Focus for $2.3bn
Merger will lead to mainframe and COBOL powerhouse
iOS 8 Healthkit gets a bug SO Apple KILLS it. That's real healthcare!
Not fit for purpose on day of launch, says Cupertino
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
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.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.