Oracle promises PeopleSoft support

Federal agencies that use PeopleSoft products don't need to worry about being ignored, an Oracle executive said today.

Those government organizations will get full support from Oracle, according to Charles Phillips, Oracle's president. Oracle and PeopleSoft announced a definitive merger agreement on Dec. 13, prompting concerns about the fate of PeopleSoft's clients, which include government agencies.

PeopleSoft's strong presence in the federal government, as well as state and local governments and the education sector, made the company a more attractive acquisition target, Phillips said, during a conference call today.

The unique demands of the government contracting process will not affect Oracle's approach to federal customers, he said. "Both of us are extremely familiar with GSA schedules and how they work," he said, referring to the two companies.

Agencies may choose to migrate to Oracle's e-Business Suite or stay with PeopleSoft products, Phillips said. Oracle will issue at least one more version of PeopleSoft's financial and human resources suite using the latter's technology, Phillips said.

But eventually, the products of Oracle and PeopleSoft will converge, he said. "Over time, the products will look a little more alike," Phillips said.

Oracle's system will become a "best-of" platform, incorporating the best features of PeopleSoft's products and those from J.D. Edwards, a smaller firm that PeopleSoft acquired in 2003.