Page Four

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

What will the enterprise software industry look like a year from now?

Fewer providers with broader product lines. As the industries mature, customers start to look to an underlying architecture at the level of the stack. They did that at in hardware—there are only three [computer] hardware companies left, there are three operating systems left, there are three database systems left. I think the enterprise software space is no different than any other industry. Customers look to a fewer number of broader providers.
I dont think it is the death of small [software developers], by the way. The exit strategy for small companies has changed, but I dont think the potential for small companies has changed. Its like the pharmaceutical industry: Merck can throw a lot of money at R&D, but every once in a while they spot some little drug development company that has developed some drug that is getting closer to clinical trials and they pay them a lot of money. Thats what the enterprise software space will be. Companies like PeopleSoft will pour way more R&D into a product line than any five or 10 companies could have, but Ill guarantee you that half a dozen times a year PeopleSoft will spot something that it didnt do and go pay some money.
How much market share are you going to gain on SAP in the next year?

I dont have a goal, but we have made this a financial no-brainer. How many other times has there been an acquisition like this that only requires $80 million of growth or $80 million in cost savings? You had to notice this week is the industry analysts have been totally supportive. The reason is it makes a lot of sense and PeopleSoft has emerged as the first credible, broad, financially stable, aggressive competitor to SAP. Where will the $80 million in savings come from?

We certainly wont cut sales forces because we address completely different industries and markets. There is no chance we are cutting sales, there is no overlap. There is enormous cost savings all over the place. The obvious one is facilities—we are in all the same cities. How much J.D. Edwards management will you keep around?

The last two weeks of these two companies coming together were spent securing the 200 highest-rated executives at J.D. Edwards. Is J.D. Edwards going to keep its name?



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