"There are many PeopleSoft and J.D.E. clients that do not wish to be customers of Oracle, where they don't go on any forced marches," said SAP America chief executive officer Bill McDermott.
Already, SAP has made substantial inroads in raiding Oracle's customer base.
On the basis of software-licensing revenue, SAP is the market leader in sales of business software, with about a 40 percent share. The combined Oracle and PeopleSoft is No. 2, with 32 percent.
SAP's North America division has captured 22 percentage points of market share in the last 28 months, roughly the amount of time McDermott has been CEO. The division employs 1,500 people in Newtown Square and 5,000 in North America.
"We expect based on the early indications that the reception to this offer will be astronomical," McDermott said.
In officially launching the combined Oracle-PeopleSoft yesterday, Ellison and other executives assured customers they remained in good hands. Ellison said his company would provide upgrades and support for PeopleSoft business software - which is used to manage supplies and inventory, human resources, finances, and relationships with customers - until 2013.
"We have enough people to do it, we have the financial resources to do it, and it makes the most sense for our customers," Ellison said in a meeting with customers that could be heard online and by telephone.
The assurances were a marked reversal from statements Ellison made when Redwood Shores, Calif.-based Oracle first bid for PeopleSoft in June 2003. At that time, he indicated that Oracle would abandon products from the acquired company.
But, he said yesterday, "continuity is important. . . . We're going to preserve your investment."
During a question-and-answer period, Ellison discounted the ability of SAP to siphon away significant numbers of Oracle customers.
