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December 18, 2004

After the acquisition

InfoWorld: Talks about what Peoplesoft users think about the future. According to Ephraim there are three choices for Peoplesoft users -

Resignation -- many customers will quietly make the switch because it is the cheapest alternative. I am sure that Oracle  will provide a lot of support to encourage this.

Rebellion -- some customers will look for third-party support solutions. This will be especially true for customers with customized applications or bolt-ons.                      

Defection -- those customers with not a lot of investment in customizations, that do not find the functionality that they  want in Oracle, will look elsewhere."                      

As in most M&A's customers and employees get the short end of the stick. And some ecosystem players get to benefit more than others. Lets do a quick analysis of who wins in those three cases.
In case of resignation obviously Oracle wins along with better pricing power to the business application vendors (SAP, Seibel etc). In case of defection it  will benefit  the likes of SAP and Microsoft and possibly may spawn an IT driven DIY-enterprise app by stiching together bunch of legacy and open source apis.

What will be interesting to watch is this user community who is going to rebel and may go for 3rd party support.  This will reinforce the "software is a services" trend and will help shift the center of power for enterprise apps back to the system integrators. In another twist this will help the offshoring trend as well.  Specially when majority of the support and maintenance staff of these three companies (SAP, Oracle and Peoplesoft ) is all between Bangalore and Hyderabad.

To give credit to these outsourcing firms,  friend was mentioning that Wipro started preparing Peoplesoft-migration tools way back in september !!

December 18, 2004 in Economics of IT | Permalink

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