Oracle AppsWorld: US users back Oracle bid; UK not so sure...

The US Oracle Applications Users Group has thrown its weight behind Oracle's hostile takeover bid for PeopleSoft, but its UK counterpart has sounded a note of caution.

The US Oracle users group supports the merger because it believes an expanded Oracle customer base will provide additional resources to build better applications and upgrades.

"Oracle should be able to leverage its Upgrade Assistance Program and integration experience to help PeopleSoft users migrate to the equivalent Oracle applications," said Arthur Hunt, president of the group. "As an organisation dedicated to serving Oracle applications users, we see our role as helping to smooth out the migration process if the acquisition occurs."

But the UK Oracle User Group seems more suspicious. Paul Parnis, applications director for the UKOUG, said: "Reducing the number of competitors alleviates the pressure on Oracle to deliver. They may slow the introduction of product developments, or not maintain the same level of customer support."

The Oracle Applications Users Group claims to have more than 2,000 member companies worldwide and more than 25 percent of the Fortune 100.

Meanwhile JD Edwards' users group, Quest, has – hardly surprisingly – come out against the Oracle bid which threatens to kill off the planned JD Edwards-PeopleSoft merger.

"We believe the Oracle deal would significantly reduce the number and quality of choices for consumers of enterprise software and, ultimately, substantially harm the members of our organisation," Quest President David Watts said.

"The 'sound bites' from Oracle's upper management suggest that this deal is not intended to benefit consumers by enhancing the current product offerings of either company, but rather to remove one competitor from the marketplace. The loser in the end won't be J.D. Edwards, PeopleSoft or Oracle. It will be users, such as those represented by Quest."

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