Oracle, PeopleSoft Already Talking on Transition - Page 2

The key to the alliance was that the combination of PeopleSoft applications and IBMs WebSphere middleware would provide PeopleSoft with a much-needed infrastructure capability and move its applications further away from dependence on Oracles database software.

It would provide IBM with a solid ERP (enterprise resource planning) applications channel without the Armonk, N.Y.-based company having to buy back into the business (IBM sold off its applications unit five years ago).

Since announcing the deal, neither PeopleSoft nor IBM has provided much in the way of contractual details, and its not clear how much integration work has been done between the two products.

And since Oracle applications are optimized only for Oracles database and application server, but PeopleSofts are optimized for Oracle as well as for IBM and BEA Systems Inc.s technology, its uncertain how much sense the IBM relationship makes for Oracle moving forward.

"We will have to take a look at [the contract]," Phillips said. "We are not that interested in adding more IBM technology to our stack."

An IBM spokesperson was not immediately available.

Oracle has said it will continue development work on the next iteration of PeopleSofts software, Enterprise 9 and Enterprise One 6. After that, it will develop a merged suite that includes functionality from Oracle, PeopleSoft and JDE suites.

/zimages/6/28571.gifHow do PeopleSoft customers feel about the merger news? Click here to find out.

The big question is how long Oracle will continue to support PeopleSofts relationships with IBM and BEA, and what that means for Oracles underlying applications infrastructure once the company is combined.

Editors Note: John Pallatto provided additional reporting for this story.

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