PeopleSoft and Oracle were back in a Delaware courtroom yesterday, in Oracle's lawsuit to overturn PeopleSoft's poison pill defense as well as its Customer Assurance Program. The Customer Assurance Program throws up an additional barrirer to Oracle because it obligates Oracle to pay massive refunds in the event that Oracle reduces support for PeopleSoft products. The judge wants more testimony in December.
Most observers think that the judge is unlikely to rule in Oracle's favor, setting up the parties for a proxy fight at Oracle's annual meeting in the spring. However, some observers think that the fact that the judge is asking for more testimony indicates that he hasn't made up his mind: a good sign for Oracle.
But what is most interesting to me is the fact that PeopleSoft wanted the judge to defer the trial until the new year, so that it could close critical fourth-quarter deals without having the judge possibly overturn the Customer Assurance Program.
This indicates, to me, that PeopleSoft intends to push hard for revenue in the fourth quarter, hoping to exceed analyst estimates and strengthen its case in the event of a proxy fight.
So, if you are considering an enterprise system purchase, PeopleSoft is no doubt making some great deals between now and December 31--if you are willing to face the strong possibility that your new vendor partner will soon be acquired.
The San Francisco Chronicle has the latest on the Delaware case.
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