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By John Pallatto  |  Posted 2004-06-30 Print this article Print

Scott also presented a transcript of Oracles June 6, 2003, conference call with stock market analysts to support its contention that Oracle was going to force a rapid migration to Oracle business applications rather than provide long-term support for PeopleSoft applications. In announcing the bid, Jeff Henley, Oracle chief financial officer, said at the time there would be "minimal business integration risks since we will not be integrating the product lines."
Ellison denied that meant that Oracle would not provide continuing support for PeopleSoft applications. After spending billions of dollars to "acquire the customers, the last thing we are going to do is annoy customers" by forcing an early migration to Oracle applications, Ellison said.
Rather, it was a PeopleSoft public relations campaign that convinced the media that Oracle would not provide long-term support for PeopleSoft applications, Ellison said. If Oracle is allowed to acquire PeopleSoft, the goal would be to release new business applications that merge the best technology in the Oracle and PeopleSoft applications, Ellison said. Oracles objective would be to "make it as easy for people to migrate from PeopleSoft 8" to the merged PeopleSoft/Oracle products "as it was to migrate from PeopleSoft 7 to PeopleSoft 8, Ellison said. The Department of Justice has argued that Oracles attempted $7.7 billion takeover of PeopleSoft is inherently anti-competitive because it would eliminate one of only three top players in the market for so-called "high function" software: Oracle, PeopleSoft and SAP. The DOJ is seeking a permanent injunction to block Oracles bid for PeopleSoft. Ellison said that when the initial merger talks broke off, Oracle also talked to J.D. Edwards about a possible merger. He said the smaller company was determined to be a less desirable merger target, so Oracle didnt actively pursue that avenue. Editors Note: This story was updated to include information and comments from the cross examination. Check out eWEEK.coms Enterprise Applications Center at for the latest news, reviews and analysis about productivity and business solutions.

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John Pallatto John Pallatto is's Managing Editor News/West Coast. He directs eWEEK's news coverage in Silicon Valley and throughout the West Coast region. He has more than 35 years of experience as a professional journalist, which began as a report with the Hartford Courant daily newspaper in Connecticut. He was also a member of the founding staff of PC Week in March 1984. Pallatto was PC Week's West Coast bureau chief, a senior editor at Ziff Davis' Internet Computing magazine and the West Coast bureau chief at Internet World magazine.

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