Welcome!

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
software.

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"

IoT & Smart Cities Stories
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
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...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...