Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    SAP: Oracle-PeopleSoft Merger Would Intensify Competition

    Written by

    John Pallatto
    Published June 24, 2004
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      SAN FRANCISCO—SAP is “anticipating a greater amount of competition” if its two main rivals, Oracle and PeopleSoft, are allowed to merge, a company vice president testified Wednesday.

      SAP AG is at the top of the North American enterprise application software (EAS) market with a 34 percent share, said Richard Knowles, SAP Americas vice president of operations. Oracle Corp.s takeover of PeopleSoft Inc. would give the combined company a market share of about 38 percent, he said, making it the top seller of EAS.

      The EAS market would become “hugely competitive” as Oracle fought to maintain the top spot above SAP, Knowles said.

      Oracle called SAP to testify Wednesday to support its view that the EAS market will remain vibrantly competitive even if two of its players merge. The Department of Justice is suing in U.S. District Court here to obtain a permanent injunction against the takeover on the grounds that it would make the market for high-end enterprise application software noncompetitive.

      Knowles told the court that SAP is “neutral” on whether the merger should go through. “We are not here for Oracle or PeopleSoft,” he said. SAP sent a representative to testify only because it was called into court by Oracle, he said.

      The merger would revitalize Oracle as a competitor because it would give it access to the PeopleSoft sales force and to additional technology, Knowles said. Overnight, he said, Oracle would become “a database company that is back in the applications business.”

      Under cross-examination, lead DOJ attorney Claude Scott questioned SAPs neutrality in the case. He asked Knowles if he was aware that SAP officials had made statements to European Union regulators that were favorable to the Oracle-PeopleSoft buyout.

      He also asked whether Knowles had heard that SAP CEO Henning Kagermann had criticized the DOJs definition of high-end and midrange markets for enterprise application software. Knowles said he wasnt aware of all of the various comments SAP executives may have made concerning the Oracle bid.

      Scott asked Knowles whether it was true that SAP believed that a the combination of Oracle, PeopleSoft and J.D. Edwards would be a “formidable competitor” in the high-end enterprise applications software market. Knowles suggested that it wasnt his role to provide an opinion on SAP competitive-market intelligence.

      When Scott referred Knowles to earlier deposition testimony that suggested he had voiced the view that the merger would make Oracle a formidable competitor, Knowles said it was “my opinion, not SAPs opinion.”

      Echoing statements from both PeopleSoft and Oracle earlier in the trial, Knowles said PeopleSoft was prepared to offer huge discounts off list prices to win sales deals. Oracle presented an internal SAP document showing that the company was willing to approve an 81 percent discount to win a sales contract with Halliburton Energy Services Corp.

      /zimages/3/28571.gifOracle is pre-empting Microsofts testimony with a “profile” of Microsoft calling it a formidable rival. Click here to read more.

      SAP was willing to consider 100 percent discounts for the initial software licenses if it gave the company an opportunity to build a continuing relationship that would generate revenue from consulting services and add-on software sales, Knowles testified.

      SAP also views Microsofts business solutions group as a growing competitive threat, Knowles acknowledged. Oracle presented an SAP e-mail, titled “these guys are here,” stating that SAP could expect to see Microsoft competing for sales in SAPs market. The message suggested that “immediate containment of Microsoft in the business solutions space” should be a top priority.

      Testimony will continue Wednesday afternoon with the long-awaited testimony, requested by the DOJ, of Doug Burgum, head of Microsoft Business Solutions.

      Editors Note: This story was updated to include testimony by SAP America executive Richard Knowles under cross-examination by the Justice Department.

      /zimages/3/28571.gifCheck out eWEEK.coms Enterprise Applications Center at http://enterpriseapps.eweek.com for the latest news, reviews and analysis about productivity and business solutions.

      /zimages/3/77042.gif

      Be sure to add our eWEEK.com enterprise applications news feed to your RSS newsreader or My Yahoo page

      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 computer technology trade journals. He was an eWEEK managing editor from 2009 to 2012. From 2003 to 2007 he covered Enterprise Application Software for eWEEK. From June 2007 to 2008 he was eWEEK’s West Coast news editor. Pallatto was a member of the staff that launched PC Week in March 1984. From 1992 to 1996 he was PC Week’s West Coast Bureau chief. From 1996 to 1998 he was a senior editor with Ziff-Davis Internet Computing Magazine. From 2000 to 2002 Pallatto was West Coast bureau chief with Internet World Magazine. His professional journalism career started at the Hartford Courant daily newspaper where he worked from 1974 to 1983.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×