Monday, April 11, 2005

SAP expands grab for PeopleSoft and JDE customers

Since the beginning of this year, SAP has been luring PeopleSoft and J.D. Edwards customers to jump ship from Oracle, with its "Safe Passage" program for SAP customers that are also running PeopleSoft or JDE. As part of this program, SAP acquired a third-party PeopleSoft/JDE maintenance and support organization, TomorrowNow.

SAP's Safe Passage program elicited a veiled threat from Oracle CEO Larry Ellison.

Now, instead of backing down, SAP is expanding its Safe Passage program to extend the offer to all PeopleSoft and JDE customers, whether or not they are currently customers of SAP. According to SAP, the expanded pitch is aimed at "businesses concerned about the challenges of facing the eventual sunset of their existing PSFT/JDE solutions; the migration to yet-developed, future Oracle offerings; and disruptions from the integration of multiple platforms, technologies and corporate cultures faced by their current solution provider."

SAP's offer is enticing from a financial perspective. SAP is offering annual maintenance at 17% of the SAP license fee, which is significantly lower than Oracle's pricing. But here's the kick: SAP's maintenance will cover both SAP products and any PeopleSoft or JDE software that the customer is running. Furthermore, customers that want to migrate to SAP will receive a whopping 75% credit on the cost of their PSFT/JDE licenses.

I'm not able to find whether any PSFT/JDE customers have yet taken advantage of SAP's offer. But I've got to believe there are a lot of discussions taking place. If any readers have insight into how SAP's offer is being received, please let me know.

Related posts
SAP slams Oracle's strategy as, Project Confusion
Ellison threatens SAP regarding PeopleSoft support
SAP to provide maintenance for PeopleSoft products

1 comment:

Gijs Houtzagers said...

Hi all,
Well what Frank has just said is exactly what i am now considering. As PeopleSoft customer I have now a set of choices:
-go up to PeopleSoft 9 and then Fusion
- go to Oracle 11.10 and then Fusion
- go to safe passage with SAP
- local products
The latest one probably will not fit because of lack of support for our high level HR instruments that we have automated. At first SAP was a problem because of deinvestments on licenses. That no loner seems to be the case. I have done a SAP HR implementation earlier (4.6.d) and it went very well. I can do the trick again.

Gijs Houtzagers
Director competence center PeopleSoft
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