AXP-ERPSoftwareEstimatesforF&ABPO7/22/03EmailfromMikeCostelloOracle,PeopleSoftandSAP.Inrecentpackageselectionstheproposalshavecomeinatthefollowingratios.Oracle0.75PeopleSoft1.00SAP1.5-1.75Nowwiththeturmoilinthemarket,PeopleSofttakingoverJDEdwards,OraclemakingaplayforPeopleSofttheentirelandscapeischanging.ThereareanumberofcompaniesthathaveputofftheirdecisiononSoftwarependingtheOracle-PeopleSoftoutcome.PeopleSoftistryingtokeepthedealsmovingbynowofferingtermsinthepurchaseagreementthatstatesthatifPeopleSoftisacquiredbyOracle,thepurchaserisentitledtoarefundofthelicensefeesof5xtheoriginallicense.PeopleSofthasbeenofferingconsultingservicesat$50perhour.SAPisintheprocessofcallingonallPeopleSoftclientsandofferingveryattractivedealstomigratefromPeopleSofttoSAP,knowingthatsomeofthePeopleSoftsoftwareselectiondecisionswerebasedon"anythingbutOracle"decisioncriteria.OracleFiscalYearends5/31,asthecalendargetsclosertoaquarterend-FYend,thedealsalwaysgetbetter.Asforfees,IsuspectthatOraclewilllandinthe$1to1.2millionrange.PeopleSoftcalculateslicensefeesbasedonCustomerrevenue,Sotheinitialofferwillbewayoutofline,buttheywillnegotiateandcutthelicensefeestobecompetitive,butonlyiftheybelievethattheywillloosethedeal.SAPwillcomeabout$2-2.5million,andwillendupofferingtheentiresuiteofapplicationsforabout$2.0million.Theseareballparkestimates.BasedonhowbadlythepackagevendorswantAMEX,andIthinkthatAMEXshouldbeinagoodspacetocutagreatdeal.NotefromJoeRahaimAfterfurtherreview,theteamdeterminedthatusingtheaboveestimateaswellasanestimateforhardwarewecametotheconclusiontouse$4MforahardwareandsoftwareestimatefortheAXP–F&ABPOproject
