Oracle buys PeopleSoft for $10 billion

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Bad for PS customers? Maybe not.

Although promises to continue support have all historically been nothing but lies, with the vast revenue from services that PeopleSoft has, Oracle would be a fool to cut support for PeopleSoft.

I think PS is a valuable new revenue stream for Oracle that they cannot allow to slip away. Moving them to an Oracle backend with PS front-end functionality will not add major benefits except in reducing DB R&D for future enhancements.

Keeping support for current backends including DB/2, etc. will ensure that if players take an IBM soultion for any specific need, it does not mean more investment to maintain their PS apps. Thus no choice between IBM and OracleSoft. Thus still have the service revenue stream that PS has built although DB sales may not increase.

The risk is DB sales being lost to IBM et al. They would have to continue supporting PS. The plan for a 'merged' product in three years is not necessarily ousting support for other DB backends but adding an integrated solution for all new offerings from the new PS v10 and Oracle v??

Any existing PS customer with an existing PS app using any DB would probably still continue to use that backend if they so choose. Requiring major changes to a clients DB system with re-training is not going to make any client happy and result in them considering other alternatives that would be just as costly. Why risk losing that service revenue?

Given the choice of The New PS solution @ US$5,000.00 or the New IBM solution @ US$150,000.00, I'd go with the New PS. Given the choice of the New PS solution @ US$120,000.00 versus the aforementioned New IBM, I'd consider the New IBM. Oracle will not allow their new client base the opportunity to consider alternatives.

PS will be supported without forcing change upon their customers however an opportunity for change will always be offered to reduce DB R&D budgets at the new Oracle.

Well, that's IMNSHO.

Posted by: The King's Servant   Posted on: 12/13/04 You are currently: a Guest | Members login | Terms of Use

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