Microsoft-SAP talks rooted in database concern

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Why does the Gov even try to pretend MS is not interested in high end apps: Questioned about the SAP talks, Burgum said that Microsoft executives, including Ballmer and Gates, began considering a merger with the German software company last June after Oracle launched its hostile bid for PeopleSoft. They feared that Oracle, which competes with Microsoft in the database software market, would entice PeopleSoft's customers to switch from Microsoft's database product to Oracle's if the two companies combined, Burgum said. PeopleSoft applications currently work with both Microsoft and Oracle databases, while Oracle works with only its own.

So, even though MS immediately, reflexively, thinks about the best response to an Oracle move targeted on big apps the gov contends MS is not in that space, nor do they intend to move into that space. If the gov's contention was correct, MS would not give a hoost about this potential Peoplesoft/Oracle consolidation.

"Regardless of the outcome, the dynamics of the industry have changed," Microsoft executive Cindy Bates said in an e-mail she sent to Ballmer, Burgum and Gates last June. "We should think proactively in determining our fate, as no doubt the folks in Armonk (IBM) are doing."

Yup, refer to the I word (IBM) as a means of confirming what portion of the market they want. Na, can't be can it Mr. Prosecutor ... can you read?

He added that Microsoft planned to let SAP customers continue using rival databases even if it bought the company--a factor that added to the complexity of the deal and ultimately led Microsoft to back away from it. The realization that IBM had no plans to buy SAP also led Microsoft to cease its talks with the German company earlier this year.

So, MS has no real interest in buying SAP, simply treating one of the largest ISV's in the world as a pawn in its gambit to move up the corporate IT food chain. And they move away why? Because they realize it would force them to become DB neutral or lose more in customer good will than they gain in revenue and app intrinsic value. That says alot about who you can trust to buy yopur apps from!; Posted by: oldskool Posted on: 06/24/04 You are currently: a Guest | Members login | Terms of Use