PeopleSoft Frequently Asked Questions

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Overview Business Continuity Product Development and Support Successor Product Set Pricing and Licensing Partners and User Groups Contact Us

OVERVIEW

Q: How will this combination benefit customers?
A: The combination of Oracle and PeopleSoft will benefit customers in multiple ways. First, the larger size of the combined companies will let us meet your demands more effectively. We can offer access to a full range of integrated enterprise software as you seek to streamline operations. The result is a more competitive offering in the enterprise applications market and the broader software industry. Second, the expanded customer base will benefit from a larger applications R&D budget that accelerates innovation. You will see investments in new development projects that might not otherwise have been funded, including within specialized verticals. In addition, the successor product set, we plan to develop over time is expected to bring together the strengths of both companies' products and be built on a modern, standards-based architecture.

Q: What incentive does Oracle have to keep PeopleSoft customers happy?
A: Oracle has every incentive to ensure PeopleSoft customers are happy and satisfied because the combined companies want the opportunity to offer you more products and services. This includes selling additional seats and modules of products you now have, other business applications you haven't purchased, infrastructure software such as databases and application servers, and services such as Oracle On Demand. We can't do this if PeopleSoft customers aren't content, and we will do everything in our power to ensure you are. We are committed to 100% customer retention and satisfaction.

Q: Will you have regular communications with PeopleSoft customers?
A: We have begun communicating information to PeopleSoft customers as it becomes available, and the combined companies are focused on continuing to do so during the integration process. In the event that you have individual questions or issues that need to be addressed, please send a message to contact.oracle@oracle.com or visit our web site at www.oracle.com/peoplesoft.

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Q: Should customers running PeopleSoft products continue to call the PeopleSoft Support Centers?
A: Yes. We want to be sure the integration of the two companies does not affect your daily business activities. You should continue to use the same support channels you have been using, whether it is online, phone support, or through your customer account team. Your support phone numbers and website links remain the same. We will communicate all changes and transitions to you well in advance through these familiar channels.

Q: Can customers continue to purchase additional PeopleSoft software after the acquisition?
A: Yes. Your investments, current or future, have enormous value that will grow over time. Both new and existing customers can continue to purchase additional available applications, modules, and seats, without restriction, of the PeopleSoft Enterprise, JD Edwards EnterpriseOne, and JD Edwards World product lines. Once the integration of the Oracle and PeopleSoft organizations is complete, we will make the range of Oracle and PeopleSoft products available to our combined field organization to ensure you receive the optimal application match to your unique circumstance. It will be up to you as the customer to make decisions based on the business fit and value.

Q: How will the pricing model work after the transaction is completed?
A: Oracle and PeopleSoft have different pricing models, and we will rationalize the two as appropriate to produce a straightforward, understandable combined model. We will communicate any changes that occur as soon as practicable. Oracle will also honor the terms and conditions of existing contracts.

Q: When will customers know the identity of their account teams?
A: We are working quickly to finalize the composition of our larger salesforce going forward, and we will communicate any changes to your current account team should they occur. Until such time, please continue to rely on your existing relationships.

Q: Will resources be available for PeopleSoft product implementations?
A: Yes. The PeopleSoft professional services organization will continue to be available, based on ongoing customer demand, to address PeopleSoft product implementations. In addition, the combined companies will work closely with PeopleSoft's systems integrators to partner on current and future projects.

Q: How long will training on PeopleSoft products be available?
A: PeopleSoft product education will continue to be available as long as customers would like to receive training. We want to ensure that your software provides the best possible service for your organization, and we know excellent training is critical to reach that goal.

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PRODUCT DEVELOPMENT AND SUPPORT

Q: What types of product maintenance and support will Oracle provide to PeopleSoft customers, and how often will it provide them?
A: We intend to protect and increase the value of your PeopleSoft investments. The combined companies plan to continue to enhance and support the PeopleSoft product lines until at least 2013. For JD Edwards EnterpriseOne versions XE and 8.0, we are extending support until February 2007. For PeopleSoft's other products and versions, including JD Edwards World, we have adopted PeopleSoft's current retirement policies. Product support will include defect corrections as they arise, regular product enhancements such as new reports or functionality, and certain regulatory updates.

Q: Does Oracle intend to release new versions of PeopleSoft products?
A: Oracle will strive to preserve and enhance the value of your existing investments. Accordingly, for the PeopleSoft Enterprise and JD Edwards EnterpriseOne product lines, the combined companies plan to develop and release a subsequent version of each over the next two calendar years. The composition of such releases will consider customer feedback and guidance from user groups.

Q: Will Oracle support customers running IBM DB2, Microsoft SQL Server, or other relational databases with the PeopleSoft products?
A: Yes. The combined companies plan to maintain currently supported hardware platforms, databases, and operating systems. We currently support customers running a broad range of non-Oracle products, so we have experience working with competitors' products to solve customer problems. We will work with other database vendors, including IBM and Microsoft, to provide the support you need.

Q: What is Oracle's intention with regard to PeopleSoft products running on the IBM iSeries platform?
A: Oracle intends to continue supporting the JD Edwards EnterpriseOne and JD Edwards World products running on the IBM iSeries hardware platform. We have been in contact with IBM and they have expressed a desire to work with us.

Q: Will Oracle continue to support the PeopleTools tool set?
A: For the relevant PeopleSoft products, we intend to continue supporting the PeopleTools tool set.

Q: How will Oracle ensure uninterrupted product support during the transition?
A: Oracle is dedicating significant resources to ensure that customers experience minimal disruption during the integration and transition process. We will maintain distinct support and development organizations for the PeopleSoft products, which should help the continuity of the excellent support customers have come to expect. We will also be in constant communication with customers, both directly and through customer advisory boards and user groups. Because of the larger size of the combined companies, we have the skills and resources to accommodate the integration and ensure uninterrupted service.

Q: Will Oracle provide On Demand applications management services for the PeopleSoft product line?
A: Yes. We intend to treat the PeopleSoft product line like any other Oracle product. Our hope is to prepare certified configurations and build the necessary infrastructure to host those products. We already provide innovative, world-class On Demand applications management services to hundreds of Oracle customers internationally. Unlike most software companies, we consistently invest in our On Demand business and believe it is strategic to our future. Our applications management operations represent best practices in the industry, and provide the lowest cost of ownership for customers.

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SUCCESSOR PRODUCT SET

Q: When does Oracle expect to offer the successor product set?
A: The combined companies have begun work on defining a successor product set and establishing timelines. We plan to incorporate the best features and usability characteristics from Oracle and PeopleSoft products in this new standards-based product set. We expect the successor product will evolve over time and incorporate a modern, standards-based, service-oriented architecture. At the same time, we'll retain Oracle's historical strength of high-quality information as a fundamental design point for our applications. The outcome will be the best of both worlds—exceptionally deep and flexible process automation, and high-quality, real-time information—two things that have historically been in tension with one another.

Q: Has Oracle identified the set of PeopleSoft modules to be included in the successor product?
A: The combined companies will undertake a rigorous and detailed analysis of the features from the various product lines. We are aware of certain modules in the PeopleSoft products that Oracle either decided not to build or that had yet to be incorporated because they were still in the planning stages. Our intention is to carefully analyze the combined companies' products and discuss with our combined customer base and user groups before determining the features and functions to incorporate into the successor product set.

Q: How will Oracle make the upgrade to the equivalent Oracle license or successor product set smoother and less costly?
A: We have done an enormous amount of research and development work already to make upgrading Oracle products smoother and more efficient. We plan to devote significant resources to building automation scripts to isolate the data and customizations and make the upgrade to the successor product set as straightforward as possible for those customers who choose it. Over time, as the combined companies and partners invest in migration technologies, it will become easier to upgrade. Oracle's access to development resources from both companies will enable the completion of these tools as soon as possible.

Q: Will services be included as part of the upgrade?
A: Although implementation and other services are not complimentary, we expect to aggressively drive down the costs associated with the upgrade through robust automated migration scripts and tools. It is important to note that consulting resources are normally required on any enterprise application upgrade, whether for releases from a single vendor or multiple vendors. The amount of consulting resources required largely depends on the degree of customization of the old versions. The good news is that implementing Oracle applications requires less consulting each year as the technology improves and consultants become more experienced.

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PRICING AND LICENSING

Q: How will the pricing models work for the different Oracle and PeopleSoft product lines?
A: Oracle is augmenting its pricing strategy to include licensing models for the PeopleSoft product lines, including PeopleSoft Enterprise, JD Edwards EnterpriseOne, and JD Edwards World. Licensing for PeopleSoft and Oracle E-Business Suite applications are not changing. Customers buying new PeopleSoft licenses will be able to choose from PeopleSoft's existing license metrics—Enterprise or Solution-based licensing—to meet your specific needs. The Enterprise model uses a range of variables, including company size, industry and revenue to calculate license costs. With the Solution model, the licensing is user based.

Q: Will PeopleSoft customers' contracts be honored?
A: Yes. Oracle will honor the terms and conditions of existing PeopleSoft contracts.

Q: Will license and maintenance prices for customers that wish to purchase more PeopleSoft licenses be predicated on the old PeopleSoft pricing or Oracle's pricing?
A: Oracle will continue to sell the PeopleSoft applications under the existing Enterprise and Solution-based pricing and licensing models. Support fees will be charged at 22 percent of net license fees.

Q: Will there be a license charge to move to the equivalent Oracle license or successor product set?
A: As a PeopleSoft customer, our strategy is to provide at no charge to you a migration to the equivalent Oracle license or to the successor product set. As part of the strategy, you would simply exchange existing PeopleSoft Enterprise, JD Edwards EnterpriseOne, and JD Edwards World licenses for equivalent Oracle licenses, as long as the products are fully licensed and current on maintenance. It will be your choice to upgrade when it makes sound business sense relative to the value you receive. For example, under this strategy, if a customer has PeopleSoft General Ledger (GL) and wants the Oracle GL product, the customer can switch at no cost. In addition, per Oracle's standard applications license policy, a restricted use license of the Oracle Database and Application Server is included for use with the respective Oracle application. Full use Database and/or Application Server licenses are required to be licensed if customizations/modifications are made to the database, forms, and/or reports.

Q: Will PeopleSoft customers running on other databases, such as IBM DB2, be offered incentives to move to the Oracle database?
A: There are no specific programs targeted at moving PeopleSoft customers running on the IBM database to Oracle Database 10g. However, we already have migration campaigns underway, such as the "Safe switch program," to encourage customers to move from IBM DB2 or Microsoft SQL Server to Oracle.

Q: Where can customers find more information on Oracle's pricing and licensing policies?
A: For further information on Oracle's pricing and licensing policies, please visit www.oracle.com/corporate/pricing.

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PARTNERS AND USER GROUPS

Q: As a PeopleSoft customer, what will happen to my partner relationships?
A: Partners are important to any successful enterprise software company. Oracle has sought to embrace the partner community focused on PeopleSoft products, and we are looking forward to expanding our partner relationships. Many of these partners are already our partners. Over time, partners believe the combined companies will create more opportunities. We expect your partners to continue to fulfill your requirements. Indeed, we have contacted them and advised them to do so. This is in the best interest of customers.

Q: How will the combination affect the user groups?
A: Oracle values the feedback and input we regularly receive from our independent user groups. We have been in close contact with the PeopleSoft user groups from around the world since the acquisition was announced. Oracle remains committed to the value these user groups offer to customers, and we expect to continue to support the independence of the PeopleSoft Enterprise, JD Edwards EnterpriseOne, and JD Edwards World user groups.

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The above is intended for information purposes and may not be incorporated into a contract.

V8-03-16