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Hi, I’m Brad Feld, a managing director at the Foundry Group who lives in Boulder, Colorado. I invest in software and Internet companies around the US, run marathons and read a lot.

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PeopleSoft Testing and Oracle Migration

Comments (5)

Ah – it’s the first business day of 2005 and time for new product announcements.

Newmerix announced the release of their newest version of Automate!Test for PeopleSoft. Newmerix has been working on a series of packaged application optimization, change, and quality software products. The first platform they’ve released products for is PeopleSoft (and – if you’ve been alive the past few months – you’ll quickly guess that the next platform is Oracle.)

One of the cool parts of this new release is that Newmerix’s Automate!Test product uses proprietary technology to “synchronize” a test suite against PeopleSoft metadata. This dramatically increases the modification and usability of the test suites as you change your PeopleSoft environment, as your test suites will synchronize with changes to the PeopleSoft metadata. If you map this concept to Oracle’s environment (which Newmerix is working on), you’ll be able to both preserve your existing test scripts as well as understand clearly the impact the migration path from PeopleSoft products to Oracle products will have on your business.

When Oracle announced their initial offer for PeopleSoft 18 months ago, several VCs that were considering investing in Newmerix backed away because they were “worried” about what this meant for PeopleSoft. Our assertion then was that this would create a huge opportunity for companies like Newmerix since their relevance is directly tied to the development, upgrade, and migration cycle for products from packaged application companies like PeopleSoft and Oracle. 18 months later, I feel stronger then ever that this is the case.

  • Pierre

    Interesting. What do you think of the fact that Oracle has never been known to like very much and treat well third-party vendors graviting around its solutions?

    As noted in this recent article on eWeek:
    http://www.eweek.com/article2/0,1759,1746663,00.asp

    “Other third-party vendors are more concerned. ‘Oracle is much less encouraging to third-party vendors to support their applications than PeopleSoft was,’ said Dion DeLoof, CEO at Anteo Group LLC, based in Atlanta. ‘PeopleSoft has made money on licensing revenue and has been happy for [the Anteos of the world] to be out there making money on upgrades. Oracle doesn’t like to give that piece of the business away. That’s really our challenge three years out.’

    Anteo, which counts on PeopleSoft implementations and upgrades for about half its business, has not executed any major PeopleSoft implementation projects for at least six months. DeLoof speculated that the slowdown was a result of users’ uncertainty over PeopleSoft’s fate.”

    Don’t you think that this can affect Newmerix too?

    Thanks,

    Pierre

  • http://www.feld.com/blog Brad Feld

    I’m not worried about this dynamic because I think it’s inaccurate. There are a number of very successful ISV’s who have built meaningful businesses around Oracle’s platform. While Oracle will want the services revenue from upgrades, this impacts consulting firms much more then it impacts ISVs. In addition, PeopleSoft already had a huge internal consulting practice, so any third party vendors that were consulting or integration oriented were already suffering from the classic channel conflict that existed between PeopleSoft and their third party consultants.

    The bigger concern is whether Oracle will ultimately developing comparable products to Newmerix – making Newmerix position in the market obsolete. PeopleSoft already had “testing products”, but they are so inferior to Newmerix’s as to not be competitive. While a major platform ISV such as Oracle can always choose to build products that cause their ISVs’ products to be obsolete, the opportunity (and challenge) for the ISV is to continue to maintain relevance by innovating in areas that are using to the ISV. This is what Newmerix has been doing and – IMHO – has a very defensible technological (and architectural) base on which to build on.

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