PeopleSoft: Giving Fervent Hope To The Market And Jitters To The Competition
1: The News
PeopleSoft is seeking to make bigger strides in the CRM, SCM and
B2B software markets with its recent spate of product releases. The rhetoric
and hype aside, the fact is that PeopleSoft has become a fearsome enterprise
applications provider. PeopleSoft has joined the elite group of vendors
that can deliver a majority of the components of a complete e-business
framework. If one considers all aspects of a CRM or SCM evaluation, PeopleSoft
has earned the license to be evaluated along with market leaders. Possibly
more encouraging is PeopleSoft's upbeat prediction for the rest of the
year, optimism only a few of its competitors can currently exhibit.
Wall Street praises the vendor's new product initiatives and its strong
first quarter results and optimism for the future, its direct competitors
are far from feeling easy.
this Article: This is a two part note, the first part discusses the
news from PeopleSoft about new products and its first Quarter results.
Part two discusses the Market Impact of this news and how it affects Users.
Recently, PeopleSoft (NASDAQ: PSFT), one of the largest business applications
providers, launched a spate of new product releases with an idea to bolster
its foray into customer relationship management (CRM), supply chain management
(SCM) and business-to-business (B2B) collaboration areas and to give a
pause to respective leading software vendors. PeopleSoft is seeking to
make a bigger brand name in these markets where it traditionally had low
June 4, PeopleSoft 8 CRM, a comprehensive Internet-based solution,
made its debut at the PeopleSoft Leadership Summit 2001 in Las Vegas.
PeopleSoft cites that its pure Internet architecture, embedded analytics
and seamless integration of enterprise data and business processes will
change the paradigm of CRM and propel it to the forefront of the industry.
PeopleSoft 8 CRM's pure Internet technology should allow for universal
access from any Web device, anywhere in the world, at any time, while
the embedded business analytics should provide real-time insight into
critical business processes. The support for multiple platforms brings
a true collaborative spirit to the enterprise, integrating business processes
between applications inside and outside enterprise boundaries. Connecting
marketing, sales, and customer service to supply chain, financials and
human capital management systems, PeopleSoft 8 CRM might be able not only
to fulfill customer requests, but to also anticipate customer expectations.
we have delivered on our promise to bring a complete, pure Internet CRM
solution to market," said Craig Conway, PeopleSoft president and CEO.
"We completely re-architected our existing CRM applications to create
a best-of-breed CRM solution based entirely on pure Internet architecture.
No other vendor can offer customers this level of access and collaboration
in a CRM solution."
8 CRM has long been aggressively announced and eagerly anticipated and,
as a result, it already has the following key strategic alliances in place:
Gemini Ernst & Young is extending its
offerings within the PeopleSoft practice to provide business consulting
and implementation services for PeopleSoft 8 CRM.
Consulting revealed its role in the launch of PeopleSoft 8
CRM for Communications, a billing-integration solution exclusively
for the communications market. KPMG will be providing implementation
and support services for the software.
8 CRM on it primary IBM DB2 database software is available
across all PeopleSoft-supported operating systems. As a result, PeopleSoft
8 CRM on DB2 is available on IBM AIX, zOS, OS/390,
Sun Solaris, HP-UX and Windows
Consulting will leverage its CRM business process experience
with its PeopleSoft implementation skills and methodologies to help
customers maximize the return on their PeopleSoft 8 CRM investment.
available on June 29, the PeopleSoft 8 CRM suite includes Sales, Marketing,
Field Service, Help Desk, Interaction Management and Support applications.
PeopleSoft currently expects to deliver the following 10 languages within
thirty days of general availability: French, French Canadian, German,
Spanish, Italian, Dutch, Japanese, Brazilian Portuguese, traditional
Chinese (Taiwan) and Swedish. While IBM DB2 is the primary development
platform for PeopleSoft 8, it will also support Microsoft SQL
Server and Oracle databases on IBM mainframe, UNIX and Windows
30, PeopleSoft announced new functionality for PeopleSoft 8 eProcurement
that will automate the entire purchasing process from requisition to
payment, giving employees self-service capabilities to purchase goods
and services. Business intelligence (analytics) will enable purchasing
managers to strategically evaluate every aspect of the procurement cycle,
including their spend by category, the value of their suppliers, and
the effectiveness of their workflow. Based on information provided by
the analytics, organizations should be able to quickly renegotiate deals
with key suppliers, driving bottom-line savings. In addition, organizations
might be able to modify procurement methods in real-time to improve
8 Supplier Relationship Management (SRM) suite, which should allow
business partners to communicate their inventory, design and buying plans
over the Web through a roles-based, collaborative portal, was announced
generally available on May 29. As a follow up to this product, PeopleSoft
plans the release in Q1 2002 of new sourcing application, which should
let buyers search for suppliers and buy direct materials online over the
Web. Embedded analytics should again help organizations evaluate the strategic
value of their suppliers by providing insight into key supplier performance
ability to access critical performance indicators almost instantaneously,
companies could continuously monitor their business processes ensuring
effective management of supplier relationships across the enterprise.
PeopleSoft 8 SRM utilizes PeopleSoft's advanced portal technology, bringing
an organization's customers, suppliers, and employees directly into
critical day-to-day business processes. Possible benefits of real-time
interaction could be: reduced costs in product design; improved time
to market; and faster response to changes in customer demand.
On May 1,
PeopleSoft acquired services procurement vendor SkillsVillage for
$32 million in stock and cash. The company hopes that adding SkillsVillage's
system for locating and hiring services and contingent staff will be a
strong enhancement of its proverbially strong human resource (HR) product.
The addition of the SkillsVillage functionality should provide PeopleSoft
with the opportunity to offer an end-to-end system for the sourcing, selection,
administration, and management of enterprise services.
These initiatives come in the wake of the company's spectacular quarterly
results. On April 25, PeopleSoft announced record financial results for
the first quarter ended March 31, 2001. Total revenue increased 34% over
$375.3 million in Q1 2000 to $503 million, which was the highest revenue
in the company's history and the fourth consecutive record quarter (See
company touted continued market demand for its collaborative enterprise
applications, citing significant wins against its competitors in the first
quarter in all product lines and across all geographies. New customers
made up 37% of license revenues, which is an 11% increase from the last
quarter. First quarter license revenue grew up 70% to $153 million, compared
to $ 90.2 million a year ago. Service revenues rose 22% over the same
quarter of last year to $319 million as customer adoption of PeopleSoft
8 drove increased demand for the company's consulting business. Net income
from recurring operations increased sharply, rising 212% to $36 million,
up from $11 million in the same quarter of 2000.
concludes Part one of a two part note. Part two discusses the Market Impact
of this news and how it affects Users.