Tuesday, January 25, 2005

PeopleSoft. Where is the Outrage?

I don’t know how many of you follow the high tech industry, or are aware of the recent + $10 Billion takeover of PeopleSoft by one of its competitors – Oracle. But it’s a done deal, and a sad one.

Now keep in mind, PeopleSoft and its 11,000 employees were doing just fine on their own, and they served a loyal customer base. They really didn’t need Oracle to come in and tell them how to run their business.

One way to view this hostile takeover is that Oracle could no longer grow organically at a pace fast enough to keep its CEO Larry Ellison happy. So they chose to add PeopleSoft’s revenue to Oracle’s bottom line. This could be seen as an admission by Ellison that his business strategy at Oracle had hit the skids. He decided to buy PeopleSoft’s revenue instead of growing his own.

But the sad thing about it all is that Ellison did not pay to get this revenue. He is firing 5,000 to 6,000 PeopleSoft employees and they are the ones who out of their own pockets are paying PeopleSoft shareholders for selling them out to Oracle. Now Oracle is bigger. But is bigger better?

Where’s the Love?

My whole point in getting here is to follow-up on a previous posting about company-centric vs. customer-centric business management. I can picture the vision statement hanging on the Oracle Boardroom – we value customers and are here to serve them. When companies begin walking the walk instead of throwing around empty promises, then we as customers will begin trusting them.


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