Capitalizing on Confusion: How CIOs Can Make the Most of the Oracle-PeopleSoft Merger

Optimal CEO Gurvendra Suri Says Now’s the Time for Close Evaluation, Tough Negotiations

Irving, Texas – December 16, 2004 – Tasked with making critical technology decisions that will have a deep and lasting impact on a business’ day-to-day operations and, ultimately, profitability, CIOs are under tremendous pressure to choose wisely when it comes to selecting the large building blocks for their enterprise IT infrastructure.  Despite the confusion and uncertainty generated by the headline-grabbing Oracle-PeopleSoft merger, a shakeup of this magnitude could spell opportunity for the savvy CIO, according to Gurvendra Suri, chief executive officer for Optimal Solutions Integration, Inc., a leading IT services firm to large government agencies and Fortune 1000 companies.

 “The market turbulence sure to follow in the wake of the Oracle-PeopleSoft merger will spur all of the leading vendors to step up their efforts to acquire new customers. This puts the corporate CIO in what is perhaps a unique position of power,” said Suri. “Careful and thorough product evaluation, strong contract negotiation skills and a touch of skepticism can go a long way in helping CIOs strike advantageous deals during this time of uncertainty.”

For its part, Optimal Solutions Integration is a technology-neutral IT consulting firm with extensive experience with all of the leading core enterprise technology platforms, including Oracle, PeopleSoft, JD Edwards and SAP.

Mr. Suri offered CIOs the following points to steer by as they make IT decisions during this time of turmoil:

• Avoid vendor lock-in¾All leading vendors will push for exclusivity in their contracts in the coming months and years. Once lock-in has been established, selling forced upgrades will be the norm, as will bundling of software and services—costly support and maintenance fees in particular. Locked into exclusive agreements, CIOs will have little leverage in terms of price negotiation, and next-to-no wiggle room when it comes to implementing best-of-breed solutions. They will be forced to pay escalating support and maintenance fees which could very well hit the 25% range.
  
  Our advice to CIOs is to soundly reject ‘lock-in’ attempts, and to preserve choice by insisting on standards and interoperability. CIOs also are well advised to be skeptical of any single vendor’s claim to provide a cost-effective, total solution. Historically, an inability to scale coupled with a lack of specialization has shown such claims to be little more than marketing hype.

  
  
• Wait and evaluate before you migrate ¾ All leading vendors will significantly step up their marketing efforts to entice their competitors’ customers to migrate. The building blocks of a company’s IT infrastructure represent a significant investment. As such, any migration strategy should be based on close and careful evaluation of platforms and specific business objectives. Right now there’s simply too much turmoil and marketing noise to make an informed migration decision. We recommend CIOs remain focused on projects that yield immediate business benefits and wring maximum value from existing technology investments. It will take time to evaluate the spate of new offerings sure to follow in the wake of the Oracle-PeopleSoft merger.
  
  
• Tap third-party expertise ¾ An independent, third party consulting firm can be a valuable ally for CIOs during this time of turmoil by providing seasoned, unbiased counsel, proven, skilled resources, and flexible service offerings that often include onsite, offshore and rural delivery options.By tapping the expertise of independent, third-party consulting firms, CIOs can realize a cost savings of up to 50% in relation to paying maintenance and support fees to vendors. Moreover, third-party support can help CIOs stave off vendor lock-in attempts and remain in a position to call the shots when it comes to technology spending. They can avoid expensive and often unwanted or unnecessary upgrades, and be free to focus budget and resources on customization and integration projects ¾- business-meaningful initiatives where the need is clear-cut and the payoff tangible.

About Optimal Solutions Integration, Inc.

Based in Irving, TX, Optimal Solutions Integration (Optimal) is an enterprise technology consulting firm trusted by the leading corporations in the world to realize maximum value from their enterprise technology investments. Through its proven Global Trust™ delivery model, Optimal offers clients the most flexibility in balancing schedule, cost, and performance by featuring onsite, offshore and rural delivery options. For more information about Optimal Solutions Integration, visit www.optimalsol.com.