Microsoft presents Peoplesoft customers with hollow offer

Microsoft’s recent offer to discount licence and support fees for Peoplesoft’s customers is a hollow offer that could take Peoplesoft’s customers out of the frying pan and into the fire. 

Microsoft is still struggling to consolidate the four overlapping business software platforms - Axapta, Great Plains, Navision and Solomon that it acquired over the last few years, leaving it in an arguably worse position than Oracle. Customers could see product support and R&D for some of these products halted when Microsoft eventually untangles this mess.

"Here we have a global giant using a hollow promise to lure businesses who are nervous about the future of their investment in Peoplesoft, using the illusion of discounted licence fees and support, and migration tools to shorten implementation time," said Technology One’s Executive Chairman Adrian Di Marco said.

"Fortunately today customers are astute enough to realise that this offer is no more than what any other business software vendor would offer during a normal competitive tender process – this is not generous discounting but standard business practice," he said.

"Whilst ongoing market consolidation is a concern to organisations considering the long term support for products that have been acquired by competitors, they are likely to adopt a "wait and see" approach before making a major decision to replace their existing supplier.

"If Peoplesoft customers were to go back out to the market, I am sure they would realise the benefits from a very detailed and thorough evaluation in a competitive tender process. This would ensure they were buying value for money and future proofed technology."