Oracle vs. Peoplesoft
Marc Proctor
David Hayes
Overview
• Oracle vs. Peoplesoft
• ERP
• Development of the information Market
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.
The Market
setting 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
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
The Market
ERP?
• ERP- Definition
• Consolidation of Data
• Connect Departments
• Software local to
individual company
• Can offer cost
reductions
Source: http://www.networkdictionary.com/
The Market
ERP?
• Average cost:
$15 million
– Ranging from:
$400,000 to $300
million
• Requires change in
Operational structure
Image Source: techrepublic.com
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
Oracle vs. Peoplesoft
• Oracle vs. Peoplesoft
– NPR report
• Process involved side
acquisitions, court
appeals, and involved
price offering.
Oracle vs. Peoplesoft
bidding 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
Oracle vs. Peoplesoft
Oracles Last Offer
• February 3, 2004, Oracle offered $28 a
share.
– $10.3 billion total.
• Accepted by Peoplesoft.
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.