Analyst Perspective: Oracle Seals the Deal with PeopleSoft
Implications for technology market, enterprises explored
Implications for technology market, enterprises explored
What Does this Mean to the Technology Market?
What Does this Mean to the Technology Market?
- The overall market for technologies used inside the enterprise is mature. With few exceptions, the opportunity to sell technology used solely within the four walls of a company has passed. Naturally, there will be exceptions by industry, such as healthcare and public sector, and sporadic technology spending driven by regulations or compliance initiatives, such as Sarbanes-Oxley.
- More M&A will occur in technology markets. Oracle's success means other vendors will execute deals. Numerous vendors are targets, notably Siebel Systems and BEA.
- Standardize the technology backbone within the enterprise. Most CIOs have the mandate of reducing the complexity and cost of enterprise technologies. Executing standardization strategies enables CIOs to do two things: hold total IT budgets flat while freeing up dollars to fund technology-enabled business initiatives.
For a second opinion on the Oracle-PeopleSoft deal, see the AMR Research alert "Oracle Buys PeopleSoft: Let the Healing Begin."
