SAP targets competitors
SAP targets competitors

SAP steps up Oracle defector programme

Vendor plays on customer's doubts

Written by Tom Sanders in California

German enterprise software maker SAP has stepped up its attempts to poach PeopleSoft and J.D. Edwards customers by dangling extra inducements to tempt them to change sides.

The expanded Safe Passage programme offers rebates and incentives for existing PeopleSoft and J.D. Edwards users in North America to switch to SAP.

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They will receive a 75 percent trade in credit for the existing software they replace with SAP and, for an additional fee, the company also promises to support both its own solution as well as the software that it is replacing during the migration phase.

When it was launched shortly after Oracle acquired PeopleSoft, the Safe Passage programme was targeted only at users of both SAP and either one of the newly acquired platforms. The German software vendor now expanded the programme to all users of the two suites, regardless of the question if they are current SAP users.

SAP hopes the programme will help it to capitalize on the uncertainty with PeopleSoft users about the future of their applications under the new owner, SAP's chief executive for North America Bill McDermott said.

"PeopleSoft and JD Edwards customers are facing the planned obsolescence of their software investment, and this is a major point of concern for companies that have already been forced to weather the takeover storm by Oracle," he continued.

PeopleSoft acquired J.D. Edwards in 2003, which in turn was purchased by Oracle early 2005. The transaction has lead to increased competition between the enlarged Oracle and SAP, the market leader in the enterprise software space.

The German software maker claims it forms a better alternative because it offers a clearer software roadmap than Oracle.

The database company plans to introduce a new software suite that replaces all of its current solutions by 2008.

Development on the existing suites from Oracle, J.D. Edwards and PeopleSoft will continue until 2006 and they will remain to be supported until 2013, the company has stated.

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