From Hostile Takeovers to Cloud Comebacks: The PeopleSoft Saga

In this gripping episode of '200: Tech Tales Found,' hosts Amanda and Jason unravel the dramatic rise and turbulent fall of PeopleSoft, once a revolutionary force in enterprise software. Founded in 1987 by Dave Duffield and Ken Morris, PeopleSoft disrupted the tech world with its client-server HRMS software, offering intuitive interfaces and a groundbreaking employee-first culture that included free soft drinks, pet-friendly offices, and even CEO-funded support for laid-off workers. As the company grew rapidly—reaching over $1 billion in revenue and dominating the HR software market—it became a prime target. In 2003, Oracle launched a hostile takeover bid led by its combative CEO Larry Ellison, igniting an 18-month corporate war marked by legal battles, poison pills, and unprecedented shareholder pressure. PeopleSoft’s defense strategy included a bold financial trap promising massive refunds to customers if Oracle acquired them and reduced product support. Despite fierce resistance, Oracle eventually won control in December 2004, finalizing the deal at $26.50 per share—a staggering $10.3 billion. Immediately after the acquisition, Oracle laid off half of PeopleSoft's workforce, devastating the company's famed culture and leaving thousands of employees without jobs. But the story didn’t end there. Just months later, Dave Duffield co-founded Workday, a cloud-based enterprise software company that would go on to challenge Oracle directly and redefine the industry through SaaS innovation. The podcast also explores how this high-stakes battle reshaped the landscape of enterprise software, accelerating the shift to cloud computing and intensifying competition among giants like SAP and Workday. Listeners gain insight into how these systems—largely invisible to the public—power everyday experiences: from payroll processing and inventory management to university enrollment and customer service. The episode serves as both a cautionary tale about corporate vulnerability and a testament to resilience, innovation, and the enduring impact of visionary leadership. From boardroom drama to real-world consequences, this saga reveals the unseen forces driving the modern economy.

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