Microsoft Muddies the Enterprise Waters

Microsoft has had a lot of practice in delivering statements to the Department of Justice over the years. But its most recent such statement—that it has no plans to enter the enterprise application market within the next two years—is probably one of its most ludicrous. (And that is saying a lot.)

The DOJ is fighting Oracles attempt to buy PeopleSoft. At the crux of the DOJs case is its claim that there are only three enterprise application vendors: Oracle, PeopleSoft and SAP. The argument? Oracles acquisition would cut that count to two.

According to news reports, Microsoft Corp. executives recently provided a sworn statement to the DOJ that allegedly upholds the DOJ market definition.

Put aside the fact for a moment that Oracle and Microsoft are bitter rivals. And that one of the last things Microsoft would like to see is Oracle buy PeopleSoft. Already, these two factors would lead me to question the veracity of Microsofts statement.

But to these, Id add a third objection. Microsoft is mischaracterizing itself as a small-time player in the enterprise app market.

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