oracle by wanghonghx

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									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.

								
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