IDN Pick 6: Fear and Low Margins at Oracle Trial
Integration Developer News' Pick-6 this focus on news coming from Oracle's court challenge of the U.S. government's move to block its takeover of PeopleSoft. As PeopleSoft this week blames Oracle's failed buyout attempt on its missing its sales numbers, see what's up in the trial. We look at items from news.com, LinuxWorld.com, CxOtoday, and Accountancy Age (which claims PeopleSoft offered 50%+ discounts to keep customers), and CRMBuyer.com (which reports on customer "hostage" fears from Oracle).
Integration Developer News' Pick-6 this focus wraps up testimony and documents coming out of Oracle's court challenge of the U.S. government's move to block its takeover of PeopleSoft.
Each day, insights surface into a still-recovering enterprise software sector. See what's up from news.com, LinuxWorld.com, CxOtoday, and Accountancy Age (which claims PeopleSoft offered 50%+ discounts to keep customers), and CRMBuyer.com (which reports on customer "hostage" fears from Oracle).In some of the most dramatic testimony yet, end-users are admitting under oath they concerned that Oracle could hold them "hostage," if allowed to takeover PeopleSoft. CRMBuyer.com reports Curtis Wolfe, CIO for North Dakota, said he feared his state could be "held hostage" by Oracle's hostile takeover bid of PeopleSoft. Read the story.
Meanwhile, some say the trial's outcome could all be up to Microsoft, even though the world's biggest software firm isn't even a party to the case. CNET's news.com reports that an exec from Accenture testified that Oracle's contention that there will be plenty of competition for ERP/enterprise software after its acquires PeopleSoft will be borne out if Microsoft decides to get more involved in the sector. To date, Microsoft has stayed in the mid-market sector, in the wake of its acquisition of Great Plains Software. Read the story..
Meanwhile, LinuxWorld's Maureen O'Gara sheds some light on why Oracle wants PeopleSoft, even after so much trouble. She reports on how while Oracle's 4Q results for database sales remain steady, Oracle's higher-margin enterprise application business "sucks." Read the story..
As to what analysts think of Oracle's overall business, IDC found Oracle is still the biggest DB company on the block. CxOToday.com reports on the latest figures, which show that Oracle, at 39.8% of revenues, leads IBM (31.3%) and Microsoft (12.1) by a wide margin. Read the story
And, speaking of margins, Accountancy Age reports that PeopleSoft execs admit they are cutting their ERP prices to the bone. The pub reports that PeopleSoft EVP Phil Wilmington, testified that he had sanctioned discounts of 55% to close deals, and was willing to cut prices by up to 65%. Read the story.
Lest developers or DBA get too discouraged about their career prospects in such a lackluster sector, ZDNET-Australia offers an insight for how these pro's can continue to make money from John Carroll, a software engineer working on distributed systems using Java and .NET. While Carroll's initial focus was on helping devs make money in Open Source, many of his perspectives have merit for commercial sectors that are in a slow-grow/low-margin cycle. Read the story.