Market gauges loyalty of PeopleSoft customers

Peter Ryan, Datamonitor customer-relationship management-analyst doubted the company’s ability to execute its proposals. ‘My concern here is what kind of buy-in it will get from PeopleSoft customers,’ he said.

Ovum analyst Philip Carnelley agreed that the shared data model was ‘very ambitious’, and it would be a ‘big undertaking’ for customers that move to the new platform. But he added that they wouldn’t be forced to move ‘for years’.

However, to ease the integration of PeopleSoft into its software portfolio, Oracle has launched ‘Project Fusion’. This will combine both companies’ strengths by creating an IT platform based on a ‘shared data’ model, with products focusing on areas such as financial services and public sector. The strategy should reveal a suite of integrated applications that are available by 2007.

Of Project Fusion, Ryan said: ‘Anything that reduces confusion for customers is welcome. But it’s very ambitious – 2007 is only two years away. I think there will be issues with motivating former PeopleSoft staff and competition from SAP.’

Software rivals are already eager to pick off restless PeopleSoft customers. SAP has acquired TomorrowNow, a third-party support provider, with the intent of luring customers away from PeopleSoft and its subsidiary JD Edwards. ‘The offering provides companies safe passage away from uncertainties arising out of the acquisition of those software brands by Oracle,’ said an SAP statement.

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