• silicon.com
• Management
• CIO Insights

By Andy McCue, 19 June 2003 14:31

NEWS UK PeopleSoft customers have reacted with concern at the news of Oracle's revised bid of $6.3bn for the company. Oracle CFO Jeff Henley yesterday tried to reassure PeopleSoft customers that it will not just scrap the company's product line, but PeopleSoft users in the UK are concerned about an Oracle buyout. Consumer goods multinational Unilever, which has been using PeopleSoft as its core worldwide HR system for around five years, said an Oracle takeover would have major implications. Martin Armitage, head of Unilever's Global Information Organisation, told silicon.com: "We are watching. We are not JD Edwards users so if PeopleSoft bought JD Edwards that would not be an issue. The major impact would be the PeopleSoft/Oracle outcome, which looks less than likely. We are major Oracle users but only on the database side, not the application space." However, he admitted that until any takeover is completed it is only on the same "worry-level" as the ongoing SCO/Unix legal battle. David Rippon, chairman of UK user group Elite, told silicon.com an Oracle takeover would be "bad news" for PeopleSoft customers. "On the user-side, clearly if you are a PeopleSoft or JD Edwards user this is a problem. Anybody using PeopleSoft would be forced to migrate to Oracle at some point in the next three to five years and there will be cost involved in doing that," he said. Analyst Gartner expects the takeover battle to be resolved "in weeks rather than months" and is advising existing PeopleSoft users to look at adding protection to contracts, while new contracts should be put on hold. Ed Thompson, vice president and research director at Gartner, said: "If you are about to sign a contract with PeopleSoft then don’t because this would change the game entirely. This has annoyed PeopleSoft immensely but it is the only logical independent piece of advice you could give." Existing customers should consider offers by PeopleSoft to add in "poison pill" clauses that promise upgrade rights, maintenance terms and conditions and software support in the event of a hostile takeover, said Thompson.