The surprise announcement that PeopleSoft has finally succumbed to Oracle's long-running takeover bid will have a far-reaching impact on the IT industry, analysts have predicted.
The merger sparked controversy after the database giant's chief executive Larry Ellison said that he "intends to produce a merged product line" to which all customers will be encouraged to migrate.
Analyst firm Ovum issued a statement pointing out that this product merger is a surprise, and "somewhat at odds" with previous statements.
Philip Carnelley, research director at Ovum, said that the resolution of the long-running battle is good news for the industry in general, and both companies' clients in particular, and that the protracted period of uncertainty has been particularly damaging for PeopleSoft's customers.
"At least now they will get some certainty, even if they don't like the outcome, which now seems rather better than they feared," he said.
"Oracle's applications customers have had almost equal uncertainty, with many commentators believing that Oracle should walk away from its applications business if it couldn't land PeopleSoft to give it the scale it sought.
"A stronger, equivalent competitor to SAP, even if it will take some time to emerge properly, will also be good for the industry and future buyers. SAP really was having things all its own way."
Carnelley speculated that IBM will be one of the biggest losers because, not only had it signed up for PeopleSoft's largest ever installation, it is trying its best to squeeze Oracle's infrastructure offerings out of the market between itself and Microsoft.
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