Microsoft plays big role in DOJ's Oracle case

WinNetMag | at | by Mike

Oracle is in court this week facing off against the US Department of Justice (DOJ), which is attempting to prevent the database giant's not-so-friendly takeover bid of PeopleSoft. But the strange part of this story is that even though Microsoft isn't a direct part of the case, the company still figures heavily in the proceedings. And, oddly enough, Oracle's talking up Microsoft and doing so--get this--in a positive manner. Here's why: Microsoft recently purchased Great Plains Software (for $2.5 billion) and Navision (for $1.3 billion), shoring up its position in the midlevel business-application market, and Microsoft might ultimately decide that it also wants to compete in the high-end business-application market. If the company does make such a decision, the DOJ's argument--that a PeopleSoft acquisition by Oracle destroys competition--is moot. But wait, there's more. Just before Oracle went to trial, Microsoft made the stunning admission that it had discussed purchasing software powerhouse SAP, which would have put Microsoft firmly in the high-end business-application market. Was the admission a coincidence? I'm not sure, but I find it interesting that Oracle executives, especially frequent Microsoft critic Larry Ellison, are suddenly talking about Microsoft in a positive light. As with Sun Microsystems, Microsoft seems to have done a lot to silence its most vocal critics by simply helping out others. Huh.