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.
a rival database company, Informix , in the late 1990s, Oracle's CEO reportedly said there is no point in spending money on acquiring a company whose customers know it is going nowhere; instead, one should spend to acquiring the customer base. Yet, for Oracle the trouble may lie in that these users have shunned Oracle's applications in the past in favor of PeopleSoft or J.D. Edwards . In other words, if these folks have selected PeopleSoft over Oracle thinking that the first was a superior product, why