Keep spending, says PeopleSoft boss

PeopleSoft chief executive Craig Conway (pictured)has told customers to keep buying its products, despite the uncertainty created by Oracle's $5.1bn bid for the company.

He used the company's leadership summit in London today to ask customers not to change their buying decisions.

"In tough markets it is technology that can make changes to businesses. That is why you should continue to buy our products," he said.

"This has never been more important than in this quarter, and I hope you will continue to do that."

If successful in its bid, Oracle intends to stop the development of PeopleSoft products. Many users have expressed concerns about being forced to migrate away from PeopleSoft.

The uncertainty created by Oracle's announcement led analyst firm Gartner to advise clients to put future PeopleSoft developments on hold until the position becomes clearer.

Avis Europe, the European division of the car rental firm, admitted that if Oracle's bid is successful, it may reconsider its PeopleSoft roll out. It recently signed a deal to install the company's financial software across its business.

"Obviously, it's still too early to predict the outcome. But we are at a fairly early stage, and able to incorporate changes if necessary," said Mittu Sridhara, vice president of IT at Avis Europe.

PricewaterhouseCoopers (PwC) is currently in the middle of updating its PeopleSoft human resources software in the US. The consultancy plans to update its European businesses to PeopleSoft version 8.8 in autumn 2004.

The pressures on PwC to change reporting procedures, following legislative changes in the US, made it imperative to continue the upgrade, according to Peter Magill, the director in charge of PeopleSoft implementation at PwC.

"But we will be watching the developments with interest," he said.

PeopleSoft has previously described Oracle's bid as an attempt to disrupt its plan to acquire JD Edwards, and Conway made the point again today.

"The key to a successful acquisition is having a common vision and a common goal," he stated. "We believe we've got that with JD Edwards, and it's certainly got the attention of our competitors."