Oracle and PeopleSoft: Bad for Consumers?
PeopleSoft was established in 1987 as a software company that offered solutions to governments, large corporations, and organizations. The company began with an original idea about a client-server, which was a new idea at the time. Over the next ten years, PeopleSoft established itself firmly in the industry, expanding its product line to provide student tracking software services to universities, such as the California State University system. In the late 1990’s, PeopleSoft began receiving complaints as to the quality of their products. Cleveland State University sued over lost student records; several Midwestern universities followed suit, complaining about quality and performance issues; finally, California State University followed with its own complaint. After spending $500 million on PeopleSoft software, the university system experienced so many problems that the California legislature was forced to intervene with an investigation. In 2003, PeopleSoft acquired J.D. Edwards as a means of providing products to smaller companies who could not afford the PeopleSoft products. Oracle began a hostile takeover process in 2003, which led to antitrust investigations.
Oracle has its own extensive line of software products, including a popular data mining program. Its competitors at the time of the takeover were PeopleSoft and J.D. Edwards. Because J.D. Edwards became a part of PeopleSoft, Oracle’s hostile takeover bid meant absorbing all competition and essentially becoming a monopoly. When an industry has many competitors, consumers benefit both from the choices available as well as competitive pricing strategies. Oracle’s position as the only provider of such client-server software means that consumers will have few options in regard to software choices and prices. In addition, Oracle’s hostile takeover will dissuade other software manufacturers from getting into the client-server software business. Such lack of competition will result in fewer innovations in the future.
There are advantages and disadvantages to Oracle’s takeover of PeopleSoft. It is possible that the takeover will turn out to be a good prospect for consumers. PeopleSoft has had a problem with bugs in its various software programs, and these bugs have led to problems for their customers, and ultimately, lawsuits. Ellison’s plan for their software was to incorporate it, but not market it separately. This means that they will be responsible for PeopleSoft’s products, and potentially will be able to provide new eyes for PeopleSoft’s software problems. As long as Oracle supports PeopleSoft’s products, than consumers will benefit from the merger.
There are certain conditions under which consumers will not benefit from the takeover. The first is if Oracle has any plans to discontinue the distribution or support of PeopleSoft products. These products are relatively expensive, and as such, it would be difficult for corporations, organizations and governments to restructure its databases around new Oracle products. If Oracle does not support PeopleSoft products, then customers whose software contains bugs might not get the help they need. The next factor is that of J.D. Edwards. As this company was acquired in order to provide consumers with a less expensive version of PeopleSoft software, Oracle needs to maintain the availability and price of J.D. Edwards products. Finally, the 2005 success of Oracle’s hostile takeover bid is shocking in light of the problems that Microsoft has had with antitrust issues. Oracle needs to be watched carefully in the future in order to monitor its potential to become a monopoly.
The post Oracle and PeopleSoft: Bad for Consumers? appeared first on Essay Bishops.
Writing quality papers is a TOP priority. One expert takes one order at a time.
The service package includes topic brainstorm, research, drafting, proofreading, plagiarism check, citation formatting, and revisions.
We appreciate how valuable your time is. Hence, we make sure all custom papers are 100% original and delivered within the agreed time frameRead more
Each paper is written from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
We see it as our duty to follow all instruction the client provides. If you feel the completed paper does not meet your exact requirements, we will revise the paper if you let us know about the problem within 14 business days from the date of delivery.Read more
Your email is safe, we use your personal data for legal purposes only and in accordance with personal data protection law. Your payment details are also secure, as we use only reliable payment systems.Read more
You can easily contact us with any question or issues you need to be addressed. Also, you have the opportunity to communicate directly with assigned writer, e-mail us, submit revision requests, chat with us online, or call our toll-free on our site. We are always available to our customers.Read more