Work remains on integration: analyst

PeopleSoft’s announcement of details of its integration plan for JD Edwards earlier this month yielded few surprises, Gartner Australia analyst Kristian Steenstrup says.

“The complementary functionality was identified in pretty much the way we were expecting.”

The briefing to analysts in New York on September 5 was the first formal statement by PeopleSoft on how JDE’s products would be merged into its own range of offerings and followed the legal completion of the acquisition a week earlier.

Among the to-be-released products are PeopleSoft Enterprise, built around PeopleSoft’s core applications, PeopleSoft EnterpriseOne, built around JDE’s suite and PeopleSoft World, which will encompass JDE’s AS/400 functionality and World portfolio.

Steenstrup says while those moves were expected, what was more interesting was word on upcoming products more tightly integrating the two vendors’ wares.

“The announcement was that they’re releasing corporate real estate management, a JDE legacy product, for PeopleSoft enterprise customers.

“Also, supplier relationship management, a heritage PeopleSoft product, is going into the EnterpriseOne customer base.”

Asset management is an area where both vendors had offerings, but on different terms and integration may be an issue, he says.

“It has previously been used by PeopleSoft in partnership with MRO software, but that partnership is now redundant.

“MRO was designed for integration, but asset management in JDE wasn’t and the same applies to other bits of JDE functionality.

“JDE was designed as a suite, to work in conjunction with its own products, not to travel out on its own; the technology needs to be made compatible.”

Integration questions remain not just about technology and products, but about other areas such as maintenance.

“Maintenance agreements for JDE are different to those for PeopleSoft and JDE and PeopleSoft have completely different perspectives on pricing and licensing.”

PeopleSoft New Zealand spokesman Andy Batchelor remains coy about the new local company structure. Batchelor says he can’t talk about the likely impact of the acquisition of JD Edwards here.

At the September 5 briefing, PeopleSoft chief executive Craig Conway noted that about 1000 of the 13,000 staff the company now has are likely to be laid off.

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