Forrester VP: Judge Should Block Oracle Takeover Of PeopleSoft - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Government // Enterprise Architecture

Forrester VP: Judge Should Block Oracle Takeover Of PeopleSoft

Says takeover would hurt customers by "virtually eliminating further innovation of the PeopleSoft product lines."

A Forrester Research analyst has come out strongly against Oracle's acquisition of PeopleSoft, a case now before the courts. In "DOJ-Oracle Trial: Down to the Wire," Forrester vice president Paul Hamerman writes that enterprise applications customers will suffer if the takeover succeeds.

"In the final analysis, we believe that applications customers would be better served by a ruling that blocks the takeover attempt," Hamerman writes. "Oracle's plan to dismantle PeopleSoft, should it succeed, would take a leading choice off the table, as well as impact existing customers by virtually eliminating further innovation of the PeopleSoft product lines."

Largely agreeing with the Department of Justice's analysis, Hamerman notes that "the market for high-end HR and financial management systems does indeed have three dominant players - currently and for the foreseeable future." Oracle's acquisition of PeopleSoft would combine two of those vendors, creating a monopolistic 800-pound gorilla in the North American enterprise applications market.

However, Hamerman sees a flaw, "though perhaps not a fatal one," in the DoJ's case. By limiting its focus to the North American market, the DoJ minimizes the importance of European powerhouse SAP. Oracle argues that the market is global, and with that perspective, its takeover appears less ominous.

In the meantime, Hamerman recommends that PeopleSoft customers continue with business as usual. Nevertheless, while he notes "PeopleSoft customers can move forward with upgrade plans and maintenance contract renewals," he suggests that they move forward with caution. Customers should consider the impact of any court decision before negotiating new licenses, and try to obtain the maximum amount of Customer Assurance Plan protection, to be paid out by Oracle in the event of a successful takeover.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Learning: It's a Give and Take Thing
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  1/24/2020
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Flash Poll