IBM, Verizon Feared Oracles PeopleSoft Buyout - Page 2

Meanwhile, Verizon Communications Corp. was so alarmed by the news of Oracles hostile bid for PeopleSoft that it decided to renew its licenses for SAPs human resources and payroll management software even though it was getting ready to complete a major project to run these applications entirely on PeopleSoft.

Laurette Bradley, Verizons senior vice president of information technology, testified Wednesday that her company decided it needed the SAP licenses as a hedge against a successful Oracle bid.

Verizon, she said, "would be very nervous" if Oracle gained control of the PeopleSoft code, given Oracles early public statements that it would migrate customers to Oracle applications rather than support the PeopleSoft applications.

Verizon was formed mainly through the merger of GTE and Bell Atlantic Corp. The former GTE organization currently runs PeopleSoft applications, and the Bell Atlantic group runs SAP. But in about two weeks, Verizon will switch over to running just PeopleSoft for human resources and payroll throughout the organization.

The company is still running SAP financial management applications but is considering a shift to PeopleSoft for this application as well, Bradley said. The decision to make the shift will depend in a large part on the results of the Oracle antitrust trial, she added.

Under cross-examination, Bradley said that even Oracles more recent statements that it would support the PeopleSoft code for at least 10 years provide little comfort. "We would be in the sorry state of having to go to Oracle to see what they could offer us," she said.

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John Pallatto

John Pallatto

John Pallatto has been editor in chief of QuinStreet Inc.'s eWEEK.com since October 2012. He has more than 40 years of experience as a professional journalist working at a daily newspaper and...