Why Would Oracle Want to Purchase Peoplesoft?

Oracle vs. Software Why would Oracle want to purchase PeopleSoft? Oracle Corp. wants to buy peopleSoft because it wants to cater almost all of the needs of big corporations. Oracle is looking for a leadership position so that it could gain prominence in the same way for big corporations as what Microsoft is for general public and small companies. In the present market, there are several players, which meet different kinds of business demands of large corporations.

Some are niche player such as Sable and sells customer relation management needs, while some such as PeopleSoft and Oracle meet data integration and other logistic needs of the businesses. With the rapid rise in market consolidation, some companies, such as SAP, are trying to meet all corporate buyer's needs. In this sense, if Oracle buys PeopleSoft, it would be as formidable and competitive as SAP (Kerstetter, 2003).

Though acquiring PeopleSoft is unlikely to provide instant leadership to Oracle, as most corporate are gravitating toward SAP, since SAP software has a reputation these days for being less buggy than Oracle's. However, in due course of time, by acquiring PoepleSoft, Oracle is likely to become number 2 to challenge the position of SAP. In the present time, selling the best individual product no longer matters; integration and simplicity does. In this sense, when Oracle acquires PoepleSoft, Oracle becomes a company with deep knowledge of software integration.

At presently, there are three or four major players in the market: SAP, Oracle, IBM, and PoepleSoft. However, by acquiring PoepleSoft, Oracle.