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Late entry

The move entails that JD Edwards, which PeopleSoft acquired last year, will cease to exist in this country as an independent entity.

Both PeopleSoft and Oracle, its opponent that is already well entrenched in this country, deny that the move has anything to do with the global takeover battle currently playing out in the U.S. courts, as Oracle defends its hostile bid for PeopleSoft against a suit from American trust busters.

Paweł Piwowar, Oracle Polska CEO, says the competitor has waited too long to enter the ERP market, which has now reached maturity and was last year worth some $100 million (zł.379.3 million). He adds that as early as 1998, when Oracle itself was a newcomer in this country, clients were reluctant to even start negotiations with a vendor that lacked local expertise. Such problems would be even more acute now that the market has been divided between Germany's SAP and Oracle, with some niche segments catered to by domestic companies.

So far, PeopleSoft's only presence on the market has been through partnerships with such firms as Deloitte, Hogart and Noblestar. Marcin Mazur, PeopleSoft spokesman for the country, says that five new partners will be sought, while at least some of the old relationships could be terminated, although he added that no decisions have yet been made. Market insiders speculate that without a strong relationship with one of the large IT integrators, PeopleSoft's chances of grabbing market share would be slim. ComputerLand, the country's second-largest integrator, confirmed through a spokesman that negotiations on possible cooperation are in progress though they are in a preliminary stage. However, both CL and Prokom, the market leader, have strong partnerships with the existing leaders in the business application market.

Still, Mazur rejects the criticism that PeopleSoft's prospects on this market are weakened by the delays.
"It is never too late to offer a very good product and give customers a choice," he says. Unfortunately for PeopleSoft, however, offering a product in a mature and fiercely competitive market is only half the battle.

But PeopleSoft says that it is not entirely new to the country, as close to 50 Polish companies already use PeopleSoft systems, including many former JD Edwards clients. Mazur also claims the company has been in talks with several businesses that have considered either improving their current ERP systems or replacing them entirely.

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