Strong Result for Oracle as PeopleSoft Users Stay
Jul 6, 2005 / By Paul Vallee
Oracle’s stronger than expected quarterly profits have sent its shares up almost 6 percent. Oracle CEO Larry Ellison contends that customers are spending more as global economies grow and that “the North American economy is extremely strong and so is Asia and Britain.” Ellison adds: “What’s contributing to Oracle’s success is not simply increases in technology budgets, but that Oracle is getting a larger percentage of the budget.”
Another key factor in Oracle’s recent success has been the company’s retention of PeopleSoft customers. Some analysts predicted that Oracle would not be able to hold on to the PeopleSoft users, but according to President Safra Catz retention of PeopleSoft customers is close to 100 percent.