|
 |
|
Here you'll find Gartner's latest analysis about Oracle's bid to buy PeopleSoft — a broad market control move following PeopleSoft's plan to acquire J.D. Edwards. |
|
|
|
|
|
|
|
13 April 2004 Update
As of 13 April 2004, the latest developments (see Complete Timeline) in Oracle's unsolicited bid to acquire PeopleSoft include:
- On 31 March 2004, PeopleSoft allowed the customer-assurance offer to lapse that guaranteed new customers a refund in case of a hostile takeover of PeopleSoft. PeopleSoft started the program in June 2003 as a way to fend off Oracle's bid and to reassure prospective customers.
- On 12 March 2004, Oracle announced that the European Commission (EC) told Oracle it objects to the proposed takeover of PeopleSoft. During March and April 2004, Oracle and PeopleSoft responded to the objections in hearings before the EC although the EC has not disclosed the contents of the hearings. The EC must issue its final decision by 11 May 2004.
- On 26 February 2004, the U.S. Department of Justice, joined by seven states (Hawaii, Maryland, Massachusetts, Minnesota, New York, North Dakota and Texas), filed a lawsuit in the U.S. District Court to block Oracle's bid. According to the Justice Department, the deal "would eliminate competition between two of the nation’s leading providers of human resource and financial management enterprise software applications, resulting in higher prices, less innovation and fewer choices" for enterprises.
- On 26 February 2004, Oracle announced that its board of directors has decided to challenge the Justice Department's lawsuit. In addition, Oracle announced it has extended its tender offer for PeopleSoft to 25 June 2004.
- On 9 February 2004, PeopleSoft's board of directors voted unanimously to recommend that shareholders reject Oracle's latest tender offer.
- On 4 February 2004, Oracle announced that it has raised its offer for PeopleSoft from $19.50 per share to $26 per share (a total of $9.4 billion in cash). The offer represents about a 19 percent premium over the closing price of PeopleSoft shares on 3 February 2004 ($22).
Read More
If Oracle's proposed takeover of PeopleSoft happens at all, it will not happen through at least 2005 (0.8 probability). Opposition to the deal by U.S. and European regulators significantly diminishes the possibility of any transaction taking place, despite Oracle's efforts to dispute the regulatory rulings in court. Court decisions are not predictable, but even if Oracle prevails against the Justice Department and the EC, the company must still address the other challenges (see "Updated Key Factors in Oracle's Bid for PeopleSoft"). Allowing the customer-assurance program to lapse indicates that PeopleSoft is more confident the Oracle bid will not significantly distract customers from now on.
Oracle disputes the Justice Department's view that the financial and human-resource application markets for large enterprises has only three competitors: SAP, Oracle and PeopleSoft. To learn how Gartner covers these markets, (see "Application Market Consolidation Causes Deployment Risks").
Enterprises that are considering PeopleSoft and J.D. Edwards offerings should use Gartner's decision frameworks to determine their strategies. The frameworks yield different advice, depending on a combination of risk tolerance, your opinion on the outcome of Oracle's bid and your company's position in the application life cycle (see "Updated Advice for PeopleSoft Enterprise Clients" and "Updated Advice for PeopleSoft EnterpriseOne Clients").
To develop an opinion on the potential effects of Oracle's bid, consider the elements that could affect the outcome of this action (see "Updated Key Factors in Oracle's Bid for PeopleSoft"). For example, when using the framework, consider the increased likelihood that Oracle's attempted acquisition of PeopleSoft will fail.
Gartner offers research related to the markets affected by Oracle's unsolicited bid for PeopleSoft, as well as its impact on other vendors' customers. Review this research, and if you have questions, talk with your Gartner analyst — by phone (United States +1 203 316 1266, Europe +44 1784 267770) or e-mail (bizapps@gartner.com, euro.inquiry@gartner.com).
Executive Changes Will Not Alter Oracle's Strategy
Larry Ellison will give up his role as chairman of Oracle, but he will remain as CEO and a board member while continuing to set the company's vision. By giving more visibility to operational managers, Oracle can better execute its strategies.
Pivotal Factors Affecting Oracle's Bid for PeopleSoft
A number of key factors are influencing how Oracle's bid for PeopleSoft will turn out. You should understand the most-significant ones before making decisions.
Updated Advice for PeopleSoft Enterprise Clients
As Oracle's bid for PeopleSoft evolves, we have updated our guidance for PeopleSoft Enterprise clients to assist them with risk mitigation. New considerations include version "desupport" dates and emerging product road maps.
Updated Advice for PeopleSoft EnterpriseOne Clients
As Oracle's bid for PeopleSoft continues to evolve, we have updated our guidance for PeopleSoft EnterpriseOne and World customers to assist them with risk mitigation. New considerations include emerging product road maps.
PeopleSoft's New Strategy Depends on Cross-Selling, Service Goals
After acquiring J.D. Edwards (JDE), PeopleSoft announced a product road map and customer-oriented strategy. The plan relies heavily on selling more to JDE customers and on follow-on services.
Eight Services Contract Terms and Conditions You Should Know
Writing these eight terms and conditions into your contracts may protect you if the vendor is involved in a merger or acquisition.
The Effect of Oracle's Bid for PeopleSoft on Outsourcing
To various degrees, the recent move by Oracle to acquire PeopleSoft affects current and prospective users of application service providers or outsourcers that host and manage PeopleSoft applications.
PeopleSoft/J.D. Edwards/Pending Oracle Acquisition Effects
The PeopleSoft acquisition of J.D. Edwards and Oracle's bid to acquire PeopleSoft hold significant ramifications for related IT services markets.
Short-Term Advice for J.D. Edwards Clients: Update 18 July
With PeopleSoft's acquisition of J.D. Edwards nearing completion, watch for PeopleSoft-J.D. Edwards product road maps to emerge. In the interim, those seeking advice on how to proceed can use our decision-making framework.
Business Applications and Infrastructure Entwined
Oracle's bid for PeopleSoft encompasses more than applications. It illustrates the pressure for vertical consolidation of application functionality and the supporting infrastructure stack.
'White Knight' Candidates for PeopleSoft
The outcome of Oracle's bid for PeopleSoft remains uncertain; however, the market forces involved lead to the consideration of other potential mergers. The alternatives to Oracle as an acquirer suggest no plausible suitors.
EAS Market Share Scenarios Based on Acquisitions
The latest 2002 market shares for the combined enterprise application software market are based on the current acquisition plays involving Oracle, PeopleSoft and JD Edwards.
Comparing Oracle and PeopleSoft CRM Functionality
Oracle and PeopleSoft customer relationship management applications have few glaring differences. If Oracle's bid for PeopleSoft succeeds, enterprises will likely face product overlap and migration issues.
Contractual Protections for PeopleSoft Customers
Mergers and acquisitions occur often in today's business environment. PeopleSoft is facing such a possibility with Oracle. PeopleSoft customers must include terms in their contracts to protect themselves from the outcome.
What PeopleSoft Customers Can Expect if Oracle Succeeds
Oracle's financial success, if it succeeds in its takeover of PeopleSoft, requires that it retain a significant proportion of acquired customers. PeopleSoft customers should plan to use this fact to their advantage where possible.
Short-Term Advice for J.D. Edwards Customers, Prospects
As Oracle's attempt to acquire PeopleSoft continues to unfold, the full effect on J.D. Edwards is unknown. Clients seeking advice on how to proceed with initiatives can use our framework as a guide for decision-making.
Short-Term Advice for PeopleSoft Customers and Prospects
As the drama of Oracle's attempt to acquire PeopleSoft continues to play out, clients are seeking advice on how to proceed with initiatives, if at all. Our recommendations can help reduce risk in these uncertain days.
The Deeper Implication of Oracle's Bid for PeopleSoft
Oracle's bid for PeopleSoft points up the value of controlling both applications and the supporting software infrastructure. However, the resulting market consolidation will reduce customer choice in business applications.
Oracle/PeopleSoft Deal Would Greatly Affect ERP Market
If it goes through, Oracle's proposed acquisition of PeopleSoft will force PeopleSoft and J.D. Edwards' enterprise resource planning customers to rethink their ERP strategies.
Oracle's Bid for PeopleSoft Won't Alter Its CRM Position
Oracle, SAP and Siebel Systems will benefit from Oracle's proposed acquisition of PeopleSoft. PeopleSoft CRM prospects and customers will likely find the acquisition unsettling.
How Oracle's Bid for PeopleSoft Affects Customers
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets, including applications and infrastructure. PeopleSoft and J.D. Edwards customers will feel the greatest impact.
Oracle Moves for Market Control With PeopleSoft Bid
Oracle announced a tender offer to buy PeopleSoft for $5.1 billion in cash. Gartner believes the move represents an effort by Oracle to gain more control over the market.
PeopleSoft/J.D. Edwards Deal Will Benefit Asia/Pacific Firms
Acquiring J.D. Edwards will enable PeopleSoft to expand in the Asia/Pacific region beyond its strongholds in Australia and New Zealand. If the vendor executes well, Asia/Pacific customers will get more functions for more industries.
PeopleSoft and J.D. Edwards Fit, but Merger Will Be Complex
The acquisition would create the second-largest vendor of enterprise applications. Though the two companies generally complement each other, PeopleSoft must deal with overlap in products and markets and with technology disparity.
Oracle's Bid for PeopleSoft: Update 27 February 2004
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 24 February 2004
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 11 February 2004
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 10 February 2004
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 4 February 2004
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 28 January 2004
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 13 January 2004
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 8 December
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 25 November
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 4 November
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 16 September
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 9 September
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 2 September
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 19 August
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 12 August
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 29 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 18 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 17 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 16 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 15 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 14 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 11 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 10 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 9 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 8 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 7 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 3 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 2 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 1 July
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 30 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 27 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 26 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 25 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 24 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 20 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 19 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 18 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 16 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 12 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
Oracle's Bid for PeopleSoft: Update 11 June
With its tender offer for PeopleSoft, Oracle is attempting to gain more control over broader markets. Gartner advises how this offer could affect you.
|
|
|
|
|
| Oracle's Bid for PeopleSoft
Replays Available
Fri, 27 February 2004
 Replay Available
|
|
|
|
