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Oracle-PeopleSoft opponents, careful what you wish for

In response to the report written by Alorie Gilbert and Dawn Kawamoto, "Justice Department staff opposes Oracle bid":

With all of PeopleSoft's customers clamoring to prevent the Oracle takeover I'd say be careful what you wish for.

PeopleSoft is currently not in great financial shape. It has just purchased J.D. Edwards which, at best, has a mediocre product and undoubtedly will require some serious cash to integrate into PeopleSoft's product line. I don't really expect J.D. Edward's customers to start forking over a lot of money for upgrades once this is done either.

I also believe that many PeopleSoft customers accelerated their product purchases last year, which leads me to believe sales this year will be less than stellar. The ERP (Enterprise Resource Planning) market is mature, so sales to new accounts are beginning to dwindle for all the major players.

Combined with the fact that looking at just about any financial indicator places PeopleSoft well below the industry leaders makes me believe that its stock should be trading in the $8 to $13 range. It also makes me believe that in the midterm the company is not entirely stable.

Competition is about to get serious, and in a mature market that's not a good thing.

So to those against the Oracle takeover I would most definitely say be careful what you wish for. Because if the Oracle takeover doesn't go to fruition you may end up in much worse shape if PeopleSoft finds itself fighting for its very survival.

Craig Carson

Dallas, Texas