Thursday, July 03, 2003
There's another one born every minute....PeopleSoft CEO Craig Conway seems to think that not only are his stockholders idiots, but so are his customers. In a move designed to ward off losing his job, Conway promised customers buying PeopleSoft product before the end of the quarter that they could possibly get refunds 3 to 5 times what they paid for the software - should the company be sold and "dramatic changes" take place to PeopleSoft's products or services during the next two years. ("PeopleSoft deals could obligate Oracle to refund $354 million").
I can see buying a different brand of corn flakes because the prize in the box is a lottery ticket - but enterprise software? Anyone buying PeopleSoft licenses thinking that he'll eventually be worth 3 times the cost shouldn't be allowed out of the house without a keeper. This 'contract' wouldn't survive a court challenge as to competency of the PeopleSoft officers.
Either Conway thinks his stockholders are too dumb to see what a bad deal Oracle is offering (his opinion), or he's afraid they will see exactly how good a deal Larry Ellison is putting on the table (my opinion). Either way, though, Conway's bottom line is what's good for Craig Conway, not for PeopleSoft's stockholders nor, for that matter, for PeopleSoft's customers.
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