May 10, 2005

Phase II of the Oracle/PeopleSoft merger: What's next?

Author: Paul Korzeniowski

The bickering, backstabbing, and bomb throwing is now over, and officials from Oracle Corp. and PeopleSoft Inc. have to focus on their most difficult task: making the most of their merger. After a seemingly endless stream of stops and starts, Oracle unveiled a blueprint to transform the two companies' Enterprise Resource Planning modules from separate entities into a cohesive product suite. On paper, the roadmap appears sound, but Oracle is expected to face significant challenges in convincing customers to continue with its products rather than switch to competitive offerings.

The merger between the two bitter rivals was not smooth. "In hindsight, a lot of the animosity between the two companies did nothing more than create a great deal of confusion and apprehension among customers," said Evan Quinn, vice president of application development research at market research firm International Data Corp.

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