The Fallout

By Larry Dignan  |  Posted 2003-06-06 Print this article Print

The fallout
Technology executives say its too early to say how the PeopleSoft acquisition of J.D. Edwards will play out. And the Oracle bid may just add more uncertainty. Frank Hood, chief information officer for Krispy Kreme, says J.D. Edwards will still be invited to a resource-planning software bake-off against SAP and Oracle this summer with a rollout scheduled in the fall. "Were still looking at the top three vendors, which to us are SAP, Edwards and Oracle," says Hood, adding that he has no immediate plans to use PeopleSofts human resources applications.
PeopleSoft isnt expected to reveal anything about product roadmaps for the J.D. Edwards deal until the end of the month in a yet-to-be-scheduled analyst meeting. PeopleSofts second quarter earnings report in July may also give some hints about whether customers postponed purchases.
Oracle is hoping to close the PeopleSoft deal in July. Nevertheless, savvy negotiators could benefit from the merger chatter, analysts say. Technology executives currently evaluating PeopleSoft or J.D. Edwards may be able to squeeze out better prices. They could cast doubt on PeopleSofts ability to integrate J.D. Edwards smoothly—and tout their ability to turn to SAP or Oracle for enterprise software—to bolster the case for price concessions, analysts say. With a distracted J.D. Edwards, analysts expect SAP to push its software for the small-to-midsize markets. Competitors to PeopleSoft such as SAP are likely to argue the company is also too busy either mulling an Oracle bid or integrating J.D. Edwards to focus on them. And what if Oracles bid is successful? "Although we will not be actively selling PeopleSoft products to new customers, we will provide enhanced support for all PeopleSoft products," said Ellison in a statement. Melding some applications may not be a bad thing. Tom Gaylord, CIO for the University of Akron and a PeopleSoft customer, says he wouldnt mind if "some of J.D. Edwards style would find its way into the PeopleSoft suite improving the user experience." Gaylord says J.D. Edwards financial management portal has a better user interface than PeopleSofts.

Business Editor
Larry formerly served as the East Coast news editor and Finance Editor at CNET Prior to that, he was editor of Ziff Davis Inter@ctive Investor, which was, according to Barron's, a Top-10 financial site in the late 1990s. Larry has covered the technology and financial services industry since 1995, publishing articles in, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism.

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