Dutkowsky chided Oracle for saying it will force PeopleSoft users to adopt Oracle Applications, saying that even if Oracle gave away its software the customers would pay more in the end. "In the world of enterprise software free is not free," he said. "The cost of software is only one-fifth the cost of enterprise applications. There is the cost of implementations, build out, customization, training of thousands of users. When you add that up free is not free.When asked why J.D. Edwards approached only PeopleSoft about buying the company and not Oracle, Dutkowsky said that J.D. Edwards and Oracle had more product overlap and many J.D. Edwards customers, like PeopleSoft customers, used IBMs enterprise database and would be forced to move to Oracles database. Dutkowsky would not say if his company had talked with officials at IBM about a possible deal with PeopleSoft before it was announced. Dutkowsky acknowledged that Oracles takeover bid had cast a shadow that could cause some potential customers to hold off buy software from his company or PeopleSoft. But he said that those customers would pay a penalty in competition against their competitors by not keeping up in the IT arms race. "For every freeze [on J.D. Edwards purchases] there will be one deal that goes ahead," he said, citing a large transaction that closed last week. If Oracle is successful in buying PeopleSoft, J.D. Edwards has a backup plan, Dutkowsky said. He declined to say what that plan entailed but he did take a parting shot at Oracle. "If a customer doesnt like the way it is treated [by Oracle] they have alternatives," Dutkowsky said. "We remain a viable alternative."
"Weve had competitions where Oracles final bid was free and we have won [the contract.]"