Author: Predrag Jakovljevic
The recent merger of Oracle and PeopleSoft requires, among many other things, finding a perfect balance between cultivating the install base versus the zeal for snagging brand new customers.
Although Oracle's product roadmap is beginning to take shape it does not include active marketing of the PeopleSoft and J.D. Edwards product lines. As a result of these products being seen as dead ends, many competitors have been scrambling to offer all sorts of incentives to switch to the still disconcerted two camps of existing customers.
The battle between Oracle, Microsoft, SAP, and IBM goes far beyond applications -- it goes right into the technology stack or the enterprise infrastructure. As a result, these vendors are drilling down deeper to compete with each other.
While customers may be bemused if not concerned about the Oracle/PeopleSoft merger, they are from a traditionally risk-adverse market. Despite the lush deals offered by the competition, realistically, the only way Oracle will lose customers is through self-inflicted wounds.
Through the PeopleSoft acquisition, Oracle hereby gains a new customer base, increased market share, expertise, immediate recurring revenue sources, and new and overlapping products. However, keeping PeopleSoft's customers will take a great deal of diplomatic customer management and savvy engineering.
Oracle does not have a history of major acquisitions, let alone experience with the subsequent integration efforts. Run by a management team that has never maneuvered a company through a large takeover, will Oracle be capable of digesting PeopleSoft?
SAP may benefit the most during Oracle's merger transition. Unlike most migration programs, SAP is offering to be responsible for maintaining the competitions implementation, as users transition to SAP alternatives, offering the stability that some will likely crave.
Challenges are aplenty when a vendor is acquired. Financial health is no longer a safe indicator to gauge a vendor's future during this mega merger era. Knowing the challenges facing big vendors, like Oracle and PeopleSoft, and their competitors can give users a negotiating edge, whether in or entering a contract.
TradeBeam strategic expansion, which covers the entire life cycle of global trade across order, logistics and financial settlement activities, seeks to improve operating efficiencies and working capital.
TradeBeam offers a hosted GTM solution. Its ongoing acquisitions will eventually create an end-to-end solution linking physical and financial supply chains enabling companies to manage and execute global trade activities from a single software platform.