Oracle-DOJ: What We Learned Last Week
Opinion: I was right: Paying attention paid off. We now know why J.D. Edwards flunked the big-enterprise contest; that Microsoft likely fibbed; and that Judge Walker is confused.Lets cut to the chase: What exactly have we learned after the first week of the DOJ-Oracle trial? Microsoft made overtures to SAP. Yes, Microsoft, which told the DOJ it had no intention of entering the market for large enterprise software anytime soon, confessed that it had cozied up to SAP last year to discuss a possible merger. The deal didnt come to passthe size of it, after all, would dwarf an Oracle-PeopleSoft combination and send antitrust regulators through the roofbut it provides what most consider to be clear evidence that Microsoft was beingahem"disengenous," shall we say, with the DOJ.
Oracle discounts its software by as much as 70 percent. Keith block, Oracles executive vice president, admitted in videotaped testimony that the company cuts software costs by as much as 70 percent when the competition is fierce enough to warrant such aggressive pricing tactics.