Oracle vs. Peoplesoft

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Oracle vs. Peoplesoft

• Marc Proctor
• David Hayes

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Overview

• Oracle vs. Peoplesoft
• ERP
• Development of the information Market

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Oracle and Peoplesoft

• Oracle CEO Larry Ellison
• Peoplesoft CEO Craig Conway
• Initial bid 16.00 a share
• 5.1 Billion
• February 3, 2004, Oracle offered 28 a share.
• 10.3 billion total.

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The Marketsetting the stage

• Oracle had strong market share
• IBM and Microsoft also positioned strongly
• Microsoft had strong windows based system SQL
• IBM had strong Linux based system
• Oracle also using Linux for its software
• Market showing strong growth

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The Market

• Used to be individual programs for each
  department.
• i.e. marketing had its own, shipping/receiving
  had its own.
• Focus was on power/performance
• Changed to reliability and ability to intigrate

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The Market ERP?

• ERP- Definition
• Consolidation of Data
• Connect Departments
• Software local to individual company
• Can offer cost reductions

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The MarketERP?

• Average cost
• 15 million
• Ranging from 400,000 to 300 million
• Requires change in Operational structure

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Oracle in a Dilemma

• Oracle needed to renew itself
• Develop ERP software
• Concerned about loosing its market share to
  growing competition from IBM, SAP, and smaller
  organizations such as Peoplesoft.
• Oracle Decided to buy Peoplesoft
• Control competition
• Leverage technology
• Gain market share

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Oracle vs. Peoplesoft

• Oracle vs. Peoplesoft
• NPR report
• Process involved side acquisitions, court
  appeals, and involved price offering.

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Oracle vs. Peoplesoftbidding wars

• Initial bid 16.00 a share
• 5.1 Billion
• Upped to 19.50 a share
• 6.3 billion
• While bids being made Peoplesoft share price was
  on the rise!
• Peoplesoft acquired JD Edwards for 1.7 billion.
• Oracle upped to 26.00 a share
• 9.4 billion

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Oracle vs. PeoplesoftOracles Last Offer

• February 3, 2004, Oracle offered 28 a share.
• 10.3 billion total.
• Accepted by Peoplesoft.

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Conclusion

• Effective forecasting, planning, and scheduling
  is fundamental to productivity-and ERP is a
  fundamental way to achieve it.
• Properly implementing ERP will give you a
  competitive advantage and help you run your
  business more effectively, efficiently, and
  responsively.