PeopleSoft not perfect on J.D. Edwards deal, CEO says

PeopleSoft Inc. CEO Craig Conway this week touted the hundreds of enhancements made in the past year to the World and EnterpriseOne applications the company inherited when it bought J.D. Edwards & Co. last year. But he also acknowledged that PeopleSoft's handling of the acquisition wasn't free of glitches.

During his keynote speech at Connect 2004 , Conway said that PeopleSoft made well-intentioned errors while trying to implement some of its licensing and software enhancement policies with the J.D. Edwards user base. For example, he noted that some J.D. Edwards customers were erroneously convinced that they would be forced to abandon their named-user licenses in favor of PeopleSoft's revenue-based model and that they would pay more than they had previously.

Concerns about PeopleSoft's licensing policies were a major bone of contention among J.D. Edwards users who attended the independent Quest International User Group's global conference in June.

The pricing issue hit home with Dave Hyzy, director of IT at Benderson Development Co., a Buffalo, N.Y.-based real estate developer that runs the World green-screen applications.

"I was definitely concerned about licensing when I heard about the new model," Hyzy said. He added that though it was unclear whether PeopleSoft originally intended to let both pricing models coexist or changed its tack after seeing the negative reactions, the company fixed the problem by letting customers choose either approach.

Conway also said that the sheer volume of new software functionality offered by PeopleSoft left some J.D. Edwards users baffled about what they were getting. Because there was a fear that PeopleSoft would do away with the J.D. Edwards applications, the company made an extra effort to boost development and unleashed "a flood of enhancements," he said.

However, he stressed that PeopleSoft did prove its point about keeping the applications alive.

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