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Computer industry

PeopleSoft Defies Oracle Bid, Pursues IBM

Strategic Insights

— 1 min read

Craig Conway, PeopleSoft's chief executive, unveiled a pivotal partnership with IBM to the company's annual user convention, drawing over 11,000 corporate customers. In the wake of Oracle's $7.7 billion hostile takeover bid, PeopleSoft is banking on this agreement to demonstrate its commitment to moving forward, despite the turmoil. The deal, valued at $1 billion over the next five years, calls for a combined investment in modernizing PeopleSoft's software applications and bolstering its business. Conway emphasized that this alliance is an attempt to reassure customers that PeopleSoft is not for sale, citing the company's determination to resist Oracle's takeover bid.

Key Takeaways:

  • PeopleSoft has secured a $1 billion, five-year commitment with IBM to invest in modernizing its software applications and strengthening its business.
  • The partnership will result in combined spending of at least $1 billion over the next five years on joint offerings, improved compatibility, and hundreds of programmers working on joint projects.
  • PeopleSoft's CEO, Craig Conway, has asserted the company's commitment to resisting Oracle's takeover bid, stating that the deal with IBM is meant to demonstrate its resolve.
  • The agreement includes the use of IBM middleware in PeopleSoft applications, facilitating better integration and collaboration between the two companies.
  • IBM's senior vice president, Steve Mills, has confirmed that the partnership is not intended to be a stepping stone for a friendly takeover bid, dismissing the possibility of Big Blue acquiring PeopleSoft.

Statistics:

  • $7.7 billion: The value of Oracle's hostile takeover bid.
  • $1 billion: The combined investment PeopleSoft and IBM will commit over the next five years.
  • 11,000: The number of corporate customers attending PeopleSoft's annual user convention.
  • 5 years: The duration of the IBM-PeopleSoft partnership.
  • 15 months: The "bad dream" PeopleSoft has endured since Oracle launched its takeover bid.

Sources:

  • The New York Times: PeopleSoft, Unfazed, Announces 5-Year Pact With IBM (Registration required)
  • The San Jose Mercury News: Takeover Bid Clouds PeopleSoft Meeting (Registration required)
  • Reuters: PeopleSoft Defies Oracle Bid, Pursues IBM
  • The Financial Times: PeopleSoft Joins Forces With IBM
  • CNET's News.com: Could IBM-PeopleSoft Deal Stave Off Oracle?

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