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By John S. McCright  |  Posted 2003-06-02 Print this article Print

"Their software is Internet enabled, as is ours, so we can plug the holes fast," he said. No firm integration plans have yet been made, however. In places where there is overlap, such as CRM (customer relationship management), PeopleSoft may opt to sell two different product lines.
"It is conceivable we could have two CRM offerings," Dutkowsky said. "We could have a heavyweight CRM offering and a lightweight CRM offering."
With combined revenue of $2.8 billion, the expanded PeopleSoft will surpass ERP software provider Oracle Corp. in size. That makes it the second-largest enterprise software provider behind SAP AG. "We compete against them [SAP and Oracle] every day," Dutkowsky said. "We almost never compete with PeopleSoft." Dutkowsky said he sees little threat from Microsoft Corp., which has been building up its presence in the enterprise software market. Microsofts target customers are companies smaller than either J.D. Edwards or PeopleSofts, he said. Dutkowsky and PeopleSoft CEO Craig Conway, who was in Paris today and unavailable for comment, first discussed the deal last fall when the boards of both companies were exploring ways they could accelerate software sales. Enterprise software developers have reported mixed results over the last year when it comes to overall profitability, but nearly all are struggling when it comes to new software license sales. After discussing the implications of an acquisition for seven months, the two chief executives got the rest of their management involved to do a serious due diligence, which has been going on for the last month, Dutkowsky said. PeopleSofts Calwell conceded that few companies have successfully taken their software up- or down-market, though she said one out of three new customers that PeopleSoft has acquired has been for its mid-market software, which the company introduced 18 months ago. "We feel good about what weve accomplished in the mid-market, but this is a way to accelerate that effort and combine their expertise in manufacturing with our expertise in services," she said. She also said both companies had similar cultures, both passionately focused on the satisfaction and success of their customers.


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