Getting its moneys worth

By John Pallatto  |  Posted 2004-12-15 Print this article Print

PeopleSoft is also prominent in federal, state and local government sectors as well as in higher education, Phillips noted. To read what PeopleSoft customers think about the buyout, click here.
"But in one area, federal payroll, which we do not have, we will pick up with PeopleSoft," he said. "That may be an exception where their product is the lead" in a converged Oracle and PeopleSoft product line.
Phillips also stood by earlier statements that Oracle will continue to acquire other companies to fill out its product line. The market for ERP software isnt expected to grow significantly in 2005, and that is why it is ripe for consolidation, Phillips said. "In the short term we probably are not looking at anything big. We want to make sure that this one works well and demonstrate that to our shareholders," he said. "Thats not to say that we couldnt do something smaller in the short term." In the meantime, Phillips said it will take "at least a couple of quarters to produce the accretion to earnings that we have promised investors." Phillips couldnt offer an estimate of how many employees will be let go as a result of the consolidations. "Obviously there will have to be some rationalization. But I dont have a hard number for you at this time," he said. "We are still evaluating things and going through that analysis as we speak." "We are more interested in keeping more of the developers and the support organization and a lot less of the administrative areas," he said. So its not just Oracle that will be paying the price for its business victory. As is inevitable in any industry consolidation, there will be a lot of people in northern California who are going to be looking for news jobs or, in some cases, new careers. There are likely to be some bumps in the road as Oracle works to absorb the company that resisted it so tenaciously for the past 18 months. The process is costly, and not the least of the costs will be what it pays to displace the hundreds of PeopleSoft employees who dont fit into the new structure. In closing Tuesdays press conference, Phillips observed that Oracle will likely be talking to the press about the results of the PeopleSoft buyout for years to come. Check out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.

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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