Oracle is a vociferous Linux supporter. PeopleSoft is busily porting all of its applications to Linux. If Oracle manages to buy PeopleSoft, we'll see a growing push toward more Linux in the enterprise. And if PeopleSoft stays independent, we'll see... a growing push toward more Linux in the enterprise.
If you have any doubt about Oracle's love for Linux, you should read this eWeek article: Oracle Closes In on 'Unbreakable Linux.'
And, as referenced above, PeopleSoft is busily porting all of its software to Linux.
Yes, these companies are surely going on this Linux binge partly because by using a 'free' operating system as the base for their proprietary software, they can offer a slightly lower total installation price to their customers while maintaining their profit margins.
They are also undoubtedly worried about Microsoft's acquisition of Great Plains Software and Navision, which gives Microsoft a business software line that could -- and probably will -- eventually compete with PeopleSoft and Oracle, not to mention with SAP and many other companies that sell in this marketplace.
Then there's J D Edwards, the company PeopleSoft was buying until Oracle decided it would like to own PeopleSoft -- and will probably still buy if PeopleSoft's management manages to fend off Oracle's unwelcome attention. It seems J D Edwards is a considerable Linux player, too.
The upshot of all this confusion is that virtually every major business software vendor that isn't owned by Microsoft is embracing Linux. Not just 'using' Linux or paying lip service, but actually building their products on Linux and actively promoting Linux as the best, most flexible, lowest-cost, and most secure server platform for businesses ranging from 'mom and pop' retailers to multinational giants.