Oracle and PeopleSoft to Merge

Conversely, PeopleSoft's tight relationship with IBM could throw a kink into Oracle's ability to support PeopleSoft, because PeopleSoft embeds WebSphere in its application server. Oracle has an application server, so it remains to be seen whether Oracle will be able to support a rival or will migrate PeopleSoft to its own application server.

Also at odds is PeopleSoft's support of rival databases. Oracle makes no secret that its RDBMS is its golden apple, and woe unto those who try to move into its limelight. PeopleSoft supports multiple RDBMSs, so naturally the fear is that not only does Oracle desire the customer base, but it desires to improve its market position by phasing out support of other database backends for PeopleSoft.

It is likely that IBM will make a move for a competing ERP vendor, like Siebel, and use its brand recognition to coerce current PeopleSoft customers away from Oracle.

Folks in the trenches need to watch carefully, as current implementations of PeopleSoft in the field are likely to be affected either by application server or RDBMS changes in the next few years. Oracle would be silly to continue to line the pockets of its competitors, and the company is unlikely to do so once it formulates a clear plan of attack.