Subject: [NEXTEL-1] DOJ Say's Nextel Gave $8M Contract To People Soft So They Would Buys Their Phones- "How Business Gets DONE!"

From: [email-masked]
Date: Tue, 15 Jun 2004 16:36:23 -0400

DOJ Say's Nextel Gave $8M Contract To People Soft So The would Buys
Their Phones- "How Business Gets DONE!
Nextel fears costs ofOracle-PeopleSoft merger
By Spencer Swartz and Michael Kahn, Reuters

SAN FRANCISCO — A Nextel Communications executive testified Monday that
he feared a merger between Oracle and PeopleSoft would cost the wireless
provider millions of dollars and force it to switch its business
software system to one made by Oracle.

Richard Cichanowicz, a Nextel vice president, said
that in a combined company Oracle would have no
motivation to upgrade the PeopleSoft system that
Nextel currently uses to manage its finances and
human resources.

The testimony, in a federal court in San Francisco, came at the start of
the
second week of a trial in which the U.S. government is seeking to block
Oracle's $7.7-billion hostile takeover bid of PeopleSoft.

The government argues that a merger would cut out competition and raise
the price of software that major companies and government agencies use
to operate their human resource and financial operations.

"It would cost us tens and tens of millions of dollars to migrate
(from PeopleSoft's software) to Oracle," said Richard Cichanowicz,
vice president of business systems integration
at Nextel Communications, one of the top U.S. wireless providers.
"We don't believe (Oracle) would upgrade software in
the same way as PeopleSoft" which would force
Nextel to ultimately switch its business software
system, Cichanowicz said. He added that Nextel
did believe Oracle assurances that it would support
PeopleSoft's existing customers after a merger.

Cell phone deal?

Cichanowicz, a government witness, also supported
U.S. Justice Department's argument that the
so-called enterprise software market is made up of
just three players: Oracle, PeopleSoft and Germany's SAP.
But Oracle lawyers suggested Nextel gave an $8
million software contract to PeopleSoft over Oracle
because Nextel wanted PeopleSoft to sign a contract
to buy its cell phones — a charge Cichanowicz and
PeopleSoft both said was false.

Steve Swasey, a PeopleSoft spokesman, said during a courtroom break that
there was "no bartering" between PeopleSoft and Nextel.

Swasey said he could not speak "definitively" on whether PeopleSoft and
Nextel had ever signed a cell phone contract.
U.S. District Court Judge Vaughn Walker, who will decide the outcome of
the trial, is expected to hear more testimony
Monday from representatives at Apartment Investment Management and
Target. Both are government witnesses.
Oracle says the government's definition of the business software market
is too narrow and ignores competition from niche software providers and
companies like Microsoft, which provides business software to small and
medium-sized companies.
http://www.usatoday.com/tech/news/2004-06-14-oracle-day6_x.htm

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