Page Three

By eweek  |  Posted 2003-06-05 Print this article Print

If you keep three different architectures, do you expect the opportunities for cross-selling to be diminished?

No, because you can take advantage of domain expertise without forcing somebody to change architectures. When we acquired Vantive we took the Vantive CRM code and used it as a blueprint and then put it under the PeopleSoft 8 architecture and offered it to our large customers. There are still 800 customers still on Vantive; we didnt force anybody to get off Vantive. All the rest of our 5,000 customers have an additional value available to them in their own architecture.
I would expect that each of these architectures—and I dont know how many there will be, but I do know that anybody that has licensed anything will get their investment protected—they should see a stream of additional value available to them that would not have been available before. Midmarket customers should probably expect to see the PeopleSoft world-class HR [human resources] product line available not by switching architectures but probably on the architecture they already have. Companies do enhancement releases all the time.
If I were a PeopleSoft manufacturing and supply chain [software] customer, which we have about 900, and they got a CD from PeopleSoft that included significant enhancements based on the J.D. Edwards world-regarded manufacturing and supply chain [technology], Id be pretty happy. How long will that take—months after the merger is completed or a year or more?

You should expect a steady, continuous stream of enhanced capability that starts to cross-pollinate within months. In Q3 we are going to have a briefing on some of what we expect to be the significant additional value we can bring to customers. How will you keep the merger-related disruptions to your business to a minimum?

The biggest challenge is internal disruptions—the coders and the people that sell and market. Ten years ago there was a high mortality rate in these acquisitions because there wasnt a great deal of deliberate planning. Today, if you look at the HP and Compaq merger, that was a case study in planning out a merger in such a way that as soon as it was completed they had a lot of action items in place. PeopleSoft is no stranger to acquisitions. Can we expect to see more in the coming year?

Yes, you will see more acquisitions, but not of this size.


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