Oracle Seeks to Discredit Witness in Antitrust Trial

Technology giant IBM Corp. has calculated that it would lose millions of dollars in software sales if Oracle Corp. prevails in its year-old quest to buy PeopleSoft Inc., according to evidence submitted Wednesday in an antitrust trial.

Redwood City, Calif.-based Oracle submitted the confidential documents as part of an effort to question the credibility of an IBM software consultant called to testify by the Justice Department, which is seeking to block Oracle’s $7.7-billion bid for rival business software maker PeopleSoft of Pleasanton, Calif.

Nancy Thomas, a top executive for IBM Business Consulting Services, largely supported one of the government’s main premises: Only Oracle, PeopleSoft and Germany-based SAP are equipped to sell complex accounting and personnel software to the nation’s largest companies.

IBM realized it would face “very substantial losses in revenue” if Oracle bought PeopleSoft because Oracle’s accounting and personnel software would not work with IBM’s database software, Oracle attorney Greg Lindstrom said during his cross-examination of Thomas.

PeopleSoft’s competing software is compatible with IBM’s database products and other components that automate administrative tasks.