The Pieces Fall Into Place - InformationWeek
IoT
IoT
Software // Information Management
Commentary
10/28/2004
12:06 PM
Valerie Potter
Valerie Potter
Commentary
50%
50%
RELATED EVENTS
The Real Impact of a Data Security Breach
Aug 02, 2017
In this webcast, experts discuss the real losses associated with a breach, both in the data center ...Read More>>

The Pieces Fall Into Place

All the pieces seem to be falling in place for Oracle's hostile takeover bid for PeopleSoft.

All the pieces seem to be falling in place for Oracle's hostile takeover bid for PeopleSoft. The PeopleSoft board's recent firing of CEO Craig Conway removed the most outspoken opponent of the deal within the PeopleSoft organization. (Shed no tears for Craig. His severance package reportedly came to $18 million.)

Oracle announced this week that it has extended its $7.7 billion offer until midnight Nov. 5. Although Oracle execs have hinted they might lower the offer price, for now it remains at $21 a share.

But the big news is that European Union antitrust regulators on Tuesday gave Oracle the go-ahead to acquire PeopleSoft, which eliminates almost the last of the deal's major stumbling blocks. Oracle is still awaiting a decision in its lawsuit to remove PeopleSoft's "poison pill" takeover defenses, and PeopleSoft shareholders may hold out for a higher bid. (Ironically, PeopleSoft saw profits rise this quarter for the first time in a year.)

Nevertheless, most signs point to the deal going through. If all goes as Oracle plans, PeopleSoft customers will eventually have to switch to Oracle applications, databases, and app servers -- and, of course, thousands of PeopleSoft employees are likely to lose their jobs. Well, boo hoo, says Network Computing editor-in-chief Rob Preston in an opinion piece entitled Oracle, PeopleSoft And The Future. Pain and suffering accompany any corporate fight, but in the long run it's better to let free enterprise reign than to rely on the government to make business decisions, he argues.

What's more, says Preston, Oracle's takeover bid has been good for the industry: "Larry Ellison's intent may be to create a software juggernaut, but he also has put every enterprise-application vendor on high alert: Innovate or be pushed aside." He cites PeopleSoft's new partnership with IBM, Microsoft's push to roll out major upgrades to its four main enterprise-software suites, and SAP's moves into the app server and Web services space as positive reactions to Oracle's bid.

Would an Oracle takeover of PeopleSoft be good for the industry by sparking innovation from competitors, or do the consequences for PeopleSoft customers and employees outweigh those arguments? How would the takeover affect your job in the future? Drop me a line and let me know what you think.

Valerie Potter is pinch-hitting for Richard Hoffman as editor of Database Pipeline this week.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll