Tuesday, February 01, 2005

Ellison threatens SAP regarding PeopleSoft support

Just as I predicted, Oracle is hinting at legal action regarding SAP's move to provide annual maintenance and support for PeopleSoft customers, by means of its acquisition of third-party support provider TomorrowNow.

According to eWeek, Larry Ellison said at the Oracle Analyst Day in New York last week,
"SAP has every right to provide support for PeopleSoft applications as long as they don't violate our intellectual and contractual property rights," Ellison said, in measured tones. "It might make it awkward for them. That's our intellectual property, and they should be cautious."
As I pointed out last month, PeopleSoft maintenance revenue was the main driver in Oracle sweetening its bid for PeopleSoft. I don't expect Oracle to sit idly by and watch any of that revenue stream diverted from its coffers. Otherwise, the whole plan falls apart.

Watch for more sparks to fly.

Related posts
Competitors swarm around PeopleSoft customers
SAP to provide maintenance for PeopleSoft products

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