Seamless integration for PeopleSoft and Oracle?

Jan 25, 2005

Oracle says PeopleSoft people need not panic.

Oracle’s acquisition of PeopleSoft this month has garnered tremendous media attention.  The controversial 18-month takeover was finally completed Jan. 7, and while the $10.3 billion merger makes Oracle much more competitive with its major rivals IBM, Microsoft and SAP, the customers of both companies may experience very little change.

Oracle CEO Larry Ellison says PeopleSoft product lines will continue to be supported through 2013, which includes the release of PeopleSoft Enterprise 9.0.

"By retaining over 90 percent of PeopleSoft's development and support organization we can deliver on our commitment to all of our applications customers," Ellison said when speaking to a worldwide audience Jan. 18 via webcast.

Owners of PeopleSoft software can expect business to continue as usual.  The product support centers will operate as before and the availability of software product upgrades will not change.

Ellison highlighted the ability to expand the R&D budget, and thus accelerate innovation, as a potential major change stemming from the merger and the expanded customer base.   Investment in new products that might not otherwise be funded will likely occur within specialized verticals.

As for Oracle customers, it may be quite some time before technology unique to PeopleSoft begins to show up in Oracle applications.  Oracle won't attempt to completely combine the PeopleSoft human resources and financial apps with their Oracle counterparts, said Oracle president Charles E. Phillips Jr.

"Over time, we'll take some of the features we see in the PeopleSoft line and move it to the Oracle product line," Phillips said. "We do have some overlap in many of our product areas."
While product offerings in the immediate future are likely to remain constant, pricing may change.  Oracle and PeopleSoft have different pricing models, and the new management is working on creating a “combined model.” Oracle will, however, honor the terms and conditions of existing contracts.

Ellison did speak of one product offering change.  He announced "Project Fusion," the company's next-generation information-oriented application architecture that will combine the best features and functions of Oracle's applications with those of PeopleSoft and JD Edwards.

"Our greatly expanded development team will focus our resources on creating next-generation information-oriented applications based completely on industry standards," Ellison said.