DOJ Lawyers Unconcerned by

By John Pallatto  |  Posted 2004-06-18 Print this article Print

Document Show"> Lindstrom also challenged Wilmingtons testimony it didnt compete with such companies as Lawson Software Inc. and Automated Data Processing Inc. for business with large enterprises.

Lindstrom presented a PeopleSoft "Competitive update" dated Feb.21, 2002 that ADP was number three on a list of five companies that competed in the worldwide market for human resources and payroll software in the year 2000. Lawson was fifth on the list after Oracle, while PeopleSoft was second to SAP.

He also presented lists of companies culled from PeopleSoft documents that Lindstrom said were examples of software sales deals that PeopleSoft lost to Lawson and ADP. PeopleSoft lost sales competitions with Lawson to such large customers as Albertsons Inc., Kaiser Permanente, Duke Energy Corp., the state of Arizona and the McGraw Hill Companies.

Read here about testimony from PeopleSoft customers at the trial. Wilmington said one must examine each deal to see what each customer actually purchased. In some cases it was for a limited set of applications for a portion of the organization. PeopleSoft products may run in other parts of the business or the company may find opportunities to compete for other sales within the same organizations.

During lunch break at the trial at the end of Wilmingtons cross examination Thursday, Oracle lead attorney Daniel Wall said the testimony showed once again that the government hasnt been able to present Judge Walker with a firm definition of what is the enterprise ERP market and what is the mid-market.

Thats because the market is a "continuum" of companies of various sizes, corporate structures and requirements that buy enterprise scale ERP software, Wall said. If the government cant prove that its concept of the enterprise ERP market is real, its going to have a hard time proving Oracle is violating antitrust law with its buyout bid for PeopleSoft.

However, Renata Hesse, a trial attorney in the DOJ technology division, said that Oracle hasnt seriously damaged the core of the governments case. While Oracle may have presented a long list of supposed sales wins by Lawson Software or ADP, it hasnt presented "any evidence at all of what these companies actually bought," she said.

Oracles lawyers are only "nibbling around at the edge" of the governments case without compromising it, Hesse said. "We think that our case is still pretty much intact," said Hesse.

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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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