Whichever side you happen to be on in this case, there's a fundamental problem with the anti-trust angle: it's dead wrong. There are lots of pros and lots of cons to this now-epic battle, but anti-trust ain't the way to go.
At issue is an ironic truth that pits marketing rhetoric against marketing reality. The basis for any anti-trust action against Oracle is the notion that enterprise software "suite" vendors are few and far between, and will be even fewer if Oracle manages to swallow PeopleSoft.
Any anti-trust action by the DoJ or EU would have to prove that a combined Oracle-PeopleSoft would be in the position to control market competition by restricting the alternatives available to enterprise software buyers. In the reckoning of these august bodies, only a few companies -- SAP, Oracle, and PeopleSoft -- are able to sell a suite of products. And while three choices a competitive market make, two would be fodder for anti-trust.
Each of these vendors has a suite of products to sell that span many, if not all, the major functions of the enterprise software world. Of course, not all suites are created equal, but when it comes to basic ERP, CRM, SCM, and other functionality that typically makes up an enterprise software suite, the five additional vendors on my short list all have what it takes or have a partner who can provide a plug-in solution. Narrowing the field by one other vendor wouldn't change the fact that, when it comes to suites, there's still an enormous amount of choice.
You've read Josh Greenbaum's opinion. What's yours? Let us know over at the IT Management Forum.
But reason three is the real kicker. Turns out that, despite all the marketing hype around software suites, almost no one is buying a full suite today. Take a look at the average deal size for all the vendors named in this column. Not a one can claim an average deal size north of $1 million, which means that the average deal by definition falls well short of being "suite-sized." It's been a fact of life for more than three years that suite-sized deals are an artifact of a more naive and cash-rich yesterday, when mega-deals were the norm and shelfware the inevitable result. Now every CIO worth his or her salt is an expert at buying only what's needed at the moment and only what can be implemented without starting with a clean slate and a $100 million price tag.
So, credit Larry Ellison with making his life a little more complicated by espousing a marketing message that has tried for years to convince buyers to throw out their moribund IT environments and standardize on the Oracle suite. It was a good idea out of touch with market reality, and had been relegated to the ash-heap of marketing rhetoric by any serious observers of the enterprise software market. The fact that DoJ and the EU are taking this hype seriously shows how much they have to learn about enterprise software. Hopefully they understand the rest of their purviews a little better.