All in a sudden, PeopleSoft has shaken the CRM world by bidding a $1.7 billion takeover of rival JD Edwards, creating a block that can defy SAP and Siebels overbearance on CRM market. Peoplesoft shows this trump just before Siebel began its European User Week. AMR Research expects the combination to give PeopleSoft strength in overseas markets, particularly in Europe and Asia Pacific.
“The combination of JD Edwards and PeopleSoft is a winning one for customers. Both mid-sized and large enterprise customers will have access to the broadest suite of integrated enterprise software applications in the world,” said PeopleSoft president and chief executive officer Craig Conway.
The move will give PeopleSoft the opportunity to sell its human resources software to J.D. Edwards’ broad base of manufacturing customers as well as boosting PeopleSofts presence in the small and medium enterprise market. It also takes the combined company ahead of Oracle in terms of market share.
This is one of the main reasons for the combination: Both companies were finding it increasingly hard to compete globally and domestically against the mammoth SAP in such a depressed technology economy. They will now have a solid footing against SAP, concluded AMR Research.
AMR also expects the combination to give PeopleSoft strength in overseas markets, particularly in Europe and Asia Pacific. Neither company had enough people on the ground to be effective in many of these global offices. Now they will have twice as many people and gain a lot of credibility in the regions, it said.
JD Edwards has a substantial installed base on the IBM midrange platform while PeopleSoft has a significant commitment to WebSphere. This is likely to increase pressure on Siebel whose loyalties to IBM have been in question since last years decision to give full-scale endorsement to Microsofts .Net strategy.
JD Edwards UK customers include oil giants Shell and BP, pharmaceutical company SmithKlineBeecham, building firms Miller Construction and Foster Wheeler, and services company WS Atkins.
Source: CRM Forum
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