Oracle vs. Peoplesoft Andus Hui Jason Hirko Travis Zach May 2, 2007

Oracle  CEO  Larry Ellison  Main Products  Database Management System  Tools for database development  Database application products; e.g., Oracle Financials.  Database and application services.

Peoplesoft  Main Products  Human Resource Management  Customer Relationship Management  Enterprise Performance Management  Enterprise Resource Planning (ERP)  PeopleSoft Enterprise

Trends  Oracle  First mover advantage Relational Database Management System (RDBMD)  large market share.  Became wealthy during the 80s-90s  Failed to renew its core product  PeopleSoft  Healthy growth  Great competitor to SAP in the ERP market

Larry Ellison’s Ideas  EXPANSION!  WebTV?  Storage?  GIS?  …..

How about………… ERP!

Why ERP?  Productivity Paradox  As new information technology is introduced, worker productivity may go down, not up  Solution  Business Process Re-engineering (BPR)  With ERP  Best business practices are built-in  Guide for reengineering your business process

The (Hostile) Takeover  June 6, 2003  $5.1B cash offer ($16 per share)  June 18, 2003  $6.3B cash offer ($19.50 per share)  February 3, 2004  $9.4B cash offer ($26 per share)

PeopleSoft’s Response  Strongly opposed  “Poison pills”  Multiple law suits

Oracle’s Strategy  Keep on upping the bid…...  Reassurance to end users  Continuing support after the acquisition  In fact, we will “over support”  Make the transition very easy  Multiple law suits

Other Parties Involved  J. D. Edwards  Acquired by PeopleSoft in the beginning of the hostile takeover  Department of Justice  Received numerous law suits regarding Anti- Trust  Microsoft  Larry asked for help, Gates ignored

Results  Lasted 18 months  Closed with $10.3B

Oracle VS PeopleSoft: And the winner is…….

SAP

SAP’s Thought  Oracle  Generating bad publicity  PeopleSoft  One less competitor  BUT……….

Oracle-SAP Relationship  SAP  Before the acquisition:  partnered with Oracle with their ERP system/Oracle database combination  After the acquisition:  Opened up the ERP system to work with any database  SAP and Oracle are partners and rivals

Recent News  Oracle  Losing share in the database market  Not doing that much in the ERP market  Released PeopleSoft HCM 9.0

Questions?