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I believe that current
PeopleSoft clients are going to have to make two very difficult decisions in the
next 4 years. First, they are going to have to decide whether to move from the
current PeopleSoft 8.x toolset and code base to version 9.
Depending on how much value is added and how many changes are thrown in with
version 9, a lot of clients may choose to sit this one out. Why go through the
time and trouble of upgrading if Fusion will be here in 2008? Now, Oracle could
choose to market PeopleSoft 9 as an "easy" and relatively minor upgrade. This may
persuade clients that it's worth the risk but it will all depend on exactly what
new features are offered.
Ironically, PeopleSoft may be a victim of it's own prior success. The radical
change from client based applications (versions 7.5 and below) to browser
based apps was a radical move that
redefined
the company and took some extent, redefined ERP applications as a whole in the
year 2000. The P.I.A.
(PeopleSoft Internet
Architecture) works amazingly well for the most part.
Application users were (for the first time) able to use Internet Explorer (or
Netscape) to access their applications on their Intranets or the Internet. The
ability to get things done using a browser added a
huge amount of value
(video link) to corporate customers and some would say, actually
saved the company.
Users
could access their applications with different devices, run reports in their
browser and by definition, massive application rollouts became much simpler for IT
departments to manage. The question today is, what more can you add to the
P.I.A. that's worth the time, cost and trouble of a pre-Fusion upgrade? Only
time will tell.
Companies are also going to ask (in 2008) whether it's worth it to move to
Fusion. I have already written about some of the
steps
Oracle could take to make Fusion more attractive to clients but I read something
the other day that made me stop in my tracks.
I read
about
Hexawares new
contracts. These guys got contracts to test PeopleSoft
environments etc but it made me wonder, what if companies wanted to stay on 8.x
for the foreseeable future? There might be a market for mid market consulting
firms to build practices around just supporting the 8.x code base if Fusion
isn't an attractive option.
I know on the surface it sounds crazy but there would be some benefits to
staying on the current toolset for 10 to 15 years.
Some pros for staying on the current toolset:
-
The current toolset allows for pretty
robust application integration between PeopleSoft and third party
apps
-
Staying would probably be cheaper than
the cost of a major upgrade to Fusion
-
Most likely cheaper than moving to
S.A.P.
-
The current solutions are (at this
point) time tested
-
Companies own PeopleTools which they
could use to build out extensions of existing modules
-
If companies paid small consulting firms
for ongoing minor support and mods, it would probably be cheaper
than the hassle of a major upgrade.
Having said that, here are some cons:
-
Regulatory requirements may necessitate
an upgrade for new functionality (Sarbanes Oxley type changes in the
law etc)
-
Oracle may make it "irresistible".
For
example they could bundle a lot of their products (database etc)
with Fusion for a very low price.
-
S.A.P. may make it "irresistible".
For example, they may do a "migrate for
free" type of deal
-
A major technology shift could make
Fusion a "must have" in 3 years (similar to the web based client
shift)
-
IT companies love to spend money and
"keep up with the Joneses". Most companies don't have enough
discipline to refrain from IT spending..
Whatever happens, we know this for sure: clients should proactively start to
perform R.O.I analysis on their current systems and figure out how long their current PeopleSoft system
can last. It might be a long time before they have to change systems.
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