Along the way, a deal of information was released about Oracle’s sales practices, the way it is viewed by competitors, and what the impact of its proposed hostile acquisition of PeopleSoft Inc could be.
Judge Vaughn Walker, who is hearing the case in San Francisco federal court, on Friday urged both Oracle and the US Department of Justice, which is suing to block the PeopleSoft takeover, to make more information available.
Walker had expressed concern on Thursday about the amount of testimony being submitted with large portions redacted or under seal. On Friday, attorneys said they were making progress in agreeing on what confidential information to release.
Companies testifying include Oracle and PeopleSoft, as well as customers and competitors, all of which have claimed portions of testimony are commercially sensitive and have redacted text from public consumption.
However, certain information, such as how large a discount Oracle is prepared to offer when it is competing for sales, or what effect an Oracle-PeopleSoft merger would have on IBM, has already come out in the courtroom.
Videotaped testimony from Oracle executive vice president Keith Block, while redacted, revealed that Oracle is planning to release packaged or preconfigured versions of its enterprise software aimed at the mid-market, where a lot of growth potential is seen.
That information is said to be important to the DoJ’s case, which hinges upon creating a definition of the so-called high function enterprise software market that comprises just three players – Oracle, PeopleSoft and SAP AG.
The testimony also revealed that executives of Block’s level are authorized to offer customers discounts of up to 70% off of the list price. Block’s subordinates can offer about 55%, and his superior, president Safra Catz, can offer unlimited discounts.
In today’s world the customer is driving 99.9% of the pricing decisions anyway, Block testified, adding that sometimes competition drives discounting and sometimes loyal existing customers are rewarded with discounts.
Also coming out in testimony was evidence suggesting that IBM would lose millions if Oracle acquired PeopleSoft, due to the fact that Oracle’s applications are designed to work on Oracle databases, while PeopleSoft’s can use IBM databases.
Nancy Thomas of IBM Business Consulting Services testified on behalf of the government that only SAP, PeopleSoft and Oracle have the software required by enterprises with complex demands.
On cross-examination, Oracle attorneys presented evidence subpoenaed from IBM that showed the possible damages to IBM from an Oracle-PeopleSoft merger, but the exact details of that evidence was not presented for public view.
Each side in the case will call 25 witnesses. The DoJ has already called eight. The case is scheduled to run for another three weeks, with Judge Walker expected to make a decision within a few months.
