PeopleSoft rejects Oracle buyout bid

PeopleSoft rejected a $9.4 billion buyout bid from Oracle on Monday.

Kristin Frey

The University is happy to hear that the corporation controlling its database will not be bought out, a University official said.

PeopleSoft, which the University uses for financial aid and class registration, among other things, rejected a $9.4 billion buyout bid from Oracle on Monday.

Oracle, the world’s largest enterprise software company, has been trying to buy out PeopleSoft since last summer. Monday’s bid was the company’s third.

Scott Ruud, deputy chief information officer for University enterprise application systems, said he is relieved PeopleSoft is not merging with Oracle. He also said PeopleSoft informed its clients – including the more than 700 U.S. higher education institutions that use its services – about the potential merger throughout the process.

“PeopleSoft notified us when Oracle made the first bid,” he said. “There have been meetings between Oracle and PeopleSoft customers just in case they bought out PeopleSoft.”

If Oracle did buy out PeopleSoft, Ruud said, few things would have changed. He said Oracle would most likely continue to support the products that the University currently uses, as well as continue the regular upgrades that PeopleSoft provides.

“In order (for Oracle) to maintain the revenue stream, they would have to maintain the product line,” Ruud said.

The University has used PeopleSoft since switching to a semester-based system in fall 1999.

In past years, the University has experienced minor glitches with PeopleSoft, Ruud said. However, he said, most of them took place while University staff members rushed to ready the system and prepare the database for the new millennium.

“Software has an expense to it, and having it all perfect is exceptionally difficult,” Ruud said.

“The problems, for the most part, have been resolved,” he said. “The University is very satisfied with the responses we get with PeopleSoft and the people that work with PeopleSoft.”

As for PeopleSoft’s future, Ruud said, the University makes sure it is prepared for any potential outcomes.