But one Oracle customer said he is disappointed that Oracle hasnt been able to carry out the hostile takeover and feels it is increasingly unlikely that the company will be able to pull it off. John Godfrey, a project manager with SITA, a global cooperative that provides information and telecommunications technology for the airline industry, said he believes the takeover of PeopleSoft is important for the future development of Oracles application lineup."Someone once said that second place isnt bad. But third place just doesnt augur well for the future," said Godfrey, who is based in London. "Im concerned that there could be an erosion of their marketplace" unless Oracle finds a way to continue expanding its customer and technology base, he said. The PeopleSoft acquisition would have provided the means to achieve that, he said. "At the end of the day, there has to be new customers so they can continue the investment in products and product enhancements," Godfrey said. "Customers lose if they dont get the steady investments in product development that they need." Godfrey, who is chairman of the Oracle Customer Relationship Management SIG and deputy chairman of the manufacturing SIG, said Oracle has made significant progress over the past 10 years in its responsiveness to customer concerns. "They have cleaned up their software a lot over the past five years," Godfrey. However, "there is still a degree of arrogance" in Oracles relations with customers. "But they have done a lot to recognize and support our requirements," he said.
He noted that Oracle slipped from second to third place in the business applications software market when PeopleSoft merged with J.D. Edwards, which was in fourth place.