Weblogic Authors: Yeshim Deniz, Elizabeth White, Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: Java IoT, Industrial IoT, Mobile IoT, Microservices Expo, IBM Cloud, Weblogic, Linux Containers, IT SOLUTIONS GUIDE, Eclipse

Java IoT: Article

Ellison Announces "There Will Be Job Losses"

As Oracle Gets PeopleSoft At Long Last - For $10.3 Billion

(December 13, 2004   9:18 AM) Speaking on CNBC, Larry Ellison this morning conceded what everyone in Silicon Valley had been fearing, in the wake of a successful bid by Oracle for PeopleSoft: "There will be some job losses at PeopleSoft and there will be some job losses at Oracle."

He was speaking after announcing, prior to the opening of the markets in New York, that PeopleSoft's board over the weekend have now agreed that Oracle can acquire 100% of PeopleSoft's stock at a price of $26.50, up from the $24 offer which Oracle had until today always maintained was its "best and final" offer.

In the acquisition agreement thrashed out over the weekend, Oracle and PeopleSoft have agreed to drop legal actions against each other. As to the $2.50 increase, the chairman of PeopleSoft's transaction committee, George "Skip" Battle, commented: "We believe this revised offer provides good value for PeopleSoft stockholders and represents a substantial increase in value from October."

"Today we announced both a great quarter and the agreement to acquire PeopleSoft. This merger gives Oracle even more scale and momentum," said Ellison.

In his CNBC interview Oracle's co-founder and CEO said:

"We just had a great quarter, where the Oracle standalone application business grew 57%, profits were up 32%, earnings per share up 35%, and this PeopleSoft acquisition is going to make our business even stronger."

Asked whether he ever thought the whole hostile takeover of PeopleSoft would have taken so very long - 18 months, from start to today's finish - he said: "Never in my wildest imagination."

Explaining the $2.50 jump in what Oracle is now going to be paying, compared to its "best and final" offer of $24 all through October/November, Ellison explained:

"We were making a lot of assumptions about their business. We didn't have actual information about their business until we were in direct negotiation with PeopleSoft [at the weekend]. As we took a look at their maintenance frame, and how much they were spending and what their revenue actually was, it turns out that that business was even more profitable than we thought."
"It's a good deal for the Oracle shareholders, and we think it's a good deal for the PeopleSoft customers," he added.

The CNBC interviewer asked Ellison why he felt so strongly about PeopleSoft, why he felt he needed to hang on so long, challenge the US government in court, and so on.

"We think it's essential for constructing our applications business," Ellison replied without hestitation.

"We've doubled the number of customers we have in the applications business," he continued. "We're going to increase our sales capacity by 50%, we're going to have a closer relationship with IBM Global Services, and Accenture and EDS, selling applications."

"This makes us a very, very strong No. 2 in the global applications business, and in makes us No. 1 in the United States."

"It makes us No.1 in retail banking and healthcare and governments. This dramatically improved our competitive position and our market share position in our applications business. It will make us a more profitable and stronger company."

It's hard to argue with a man who has just pulled off a ten-billion dollar, hostile takeover.

More Stories By Jeremy Geelan

Jeremy Geelan is Chairman & CEO of the 21st Century Internet Group, Inc. and an Executive Academy Member of the International Academy of Digital Arts & Sciences. Formerly he was President & COO at Cloud Expo, Inc. and Conference Chair of the worldwide Cloud Expo series. He appears regularly at conferences and trade shows, speaking to technology audiences across six continents. You can follow him on twitter: @jg21.

Comments (12) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

Most Recent Comments
There Will Be Job Lossest 01/17/05 06:13:57 AM EST

Well I supopose at least everyone reading this site was forewarned!

D 12/28/04 08:13:27 PM EST

Great. Now will you please buy the 49ers?

itdontlookgoodfromhere 12/19/04 10:33:13 AM EST

Congratulations, Larry, you got what you wanted.

LE: Yep, we prevailed in the end. If this hadn't happened, we would have tried to invalidate their poison pill. The gall of them to have one!

Don't you have one, too?

LE: Of course, but that's different. I'm King of the World and no rules apply to me. By the way, did you see the way Duffield lied long and hard to his employees and they actually bought it? Hilarious.

Kind of like your shareholders believing your statement that $24 was your best and final offer?

LE: Yeah, but everyone already knows my ethics. If I didn't lie it would probably shock the market. Wouldn't want that.

What happens now to the PSoft employees?

LE: For PR reasons, we want to make sure everyone knows that all PSoft employees will have choices.

What choices?

LE: The choice of working their ass off the next few months and probably being fired or not working their ass of and certainly being fired. Sounds like a choice to me.

Won't you need developers + maintenance folks?

LE: Well, the only profitable piece of PSoft is JDE World. That's because the software and hardware platform in inherently stable and it doesn't take many folks in India to maintain it. That's the model we'll work toward for the old One World product and the current PSoft product. We pay 1.10/hr in India for developers. If the developers here were interested in staying on, heck, we might pay that double that! See, more choices.

What about the statement about supporting the

LE: Well, we don't want that fat maintenance stream to dry up. Remember, it's the only thing that kept PSoft above water. So, we'll do what we need to do to keep the dupes paying 18% per year for practically nothing.

And functional enhancements?

LE: I said enhancements but not what kind. We plan to enhance the software by fixing all the existing bugs&well, most of the existing bugs&well, enough bugs to show that something happened.

And that's enhancement?

LE: Sure. When you go from software with a lot of bugs to software with fewer bugs, it's been enhanced, right? Plus, if the developers have time between bug reports, they'll work on some minor functional stuff.

How about major releases for the JDE and Peoplesoft products?

LE: Beyond what's currently being worked on, the next JDE release, code name "Pigs Fly," and the followup Peoplesoft release, internally known as "Hell Freezes Over," don't have specific dates on them.

How long will integration take?

LE: Total integration will take as long as it takes to unwind PSoft real estate commitments. Partial integration (i.e. wholesale slashing) will start sooner.

Do you see any side benefits to the deal?

LE: I expect that there will be a rush of business for Pleasanton real estate agents. See, we're giving back to the community.

fletch 12/14/04 08:22:22 AM EST

Larry is a God in DBs. Consistently Oracle has shown they just don't get anything else unless you only buy Oracle. App Servers etc. Maybe I'm missing something but this is a big yawn. Peoplesoft has a good HR Product so maybe they complete with SAP better. Market growing? don't think so. SQL Server and Open Source are a bigger threat. Larry has too much time on his hands and too big an ego.

eastbaydesigner 12/14/04 07:13:16 AM EST

Oracle wins no matter how you look at it. Like Larry said, they got the engineering and programming. I believe to get the PeopleSoft engineers, programmers and developers was the main reason for the takeover. Of course, they also got the product, the applications and the customers that go with it. And the PeopleSoft complex in Pleasanton. Anyone know how much that is worth? Real estate is extremely expensive out here, especially Pleasanton.

Vengeance is mine! 12/14/04 06:21:33 AM EST

At laaaaast -- You're a fool! I won't reward evil and that includes Ellison. He started Oracle on deceit and deceit he shall have! Reap the wind, sow the whirlwind. Merry CHRIST-mas heathens!

Charisse Sebastian 12/13/04 11:08:48 PM EST

Let me see if I have this correctly, Larry Ellison spends 10B and 18 months worth of effort to nuetralize a competitor yet claims he has to outsource jobs to India cut costs/maintain profits. Can we all spell "sleaze?"

David 12/13/04 08:13:34 PM EST

Too bad the page to view this story was marred by a big Oracle advertisement that sits in the middle of the page! For those who insist on using inferior technology, I'm sure Oracle and Peoplesoft together will be a big winner. Go PostgreSQL!

Makes Sense 12/13/04 07:12:01 PM EST

A move that Oracle had to make given the present business climate. The future is in the applications that use the tools not just the tools themselves.
With the front line application and the data mangement pieces in place, the next thing Larry should do is buy BEA for a decent web platform to run the applications on.

appBizzzz 12/13/04 01:10:49 PM EST

So in one move Oracle becomes the largest applications business in the USA...and No. 2 in the whole world. Nice deal, I'd say. Go Larry!!!

lucabrassi999 12/13/04 12:55:01 PM EST

This is just a guess on my part, but my gut feeling is that if you are a developer or software engineer working for PeopleSoft, you will be retained. If you are a PeopleSoft salesperson or a help desk employee, you better start looking for work.

Again, I am just guessing, since I am not an employee of either Oracle or PeopleSoft. I am basing my guess on what usually happens when IT companies merge. The developers and engineers are retained, the support personnel are laid off

At laaaaast 12/13/04 11:01:02 AM EST

>>>"Today we announced both a great quarter and the agreement to acquire PeopleSoft. This merger gives Oracle even more scale and momentum.">>>

Ellison IS a god, and that what's-the-difference joke isn't so far from the truth any more, then one that ends "God doesn't think he's Larry Ellison"

@ThingsExpo Stories
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...