Oracle's rep damaged by PeopleSoft farce

Oracle's stumbling and stuttering takeover bid for PeopleSoft has fuelled negative perceptions of the software company among corporate computer buyers, which could sap demand for its products, according to a report published this week.

The report, issued by market research firm Techtel, said one in four IT professionals with an opinion of Oracle have a low regard for the company. Less than 50 per cent of the 765 survey participants said they trust Oracle, compared with 80 per cent declaring trust in IBM, said Bill Schaub, the report's author.

The survey, conducted in July, indicates Oracle's corporate image is in its worst shape in the 12 years that Techtel has been measuring it. The research firm surveys hundreds of IT buyers every quarter to measure their perceptions of numerous computer companies.

Other companies scoring relatively low in the image department in July's survey were CA, Microsoft and Germany's SAP. IBM, Symantec and Adobe Systems fared better, with positive perceptions soaring above 90 per cent.

But Schuab singled out Oracle in his report, saying that respect for Oracle within the IT buying community has been on the wane for about a year. Though respondents weren't asked to explain their answers, Schaub guessed declining opinion of the company is related to the PeopleSoft battle, which began about 16 months ago.

"The opinion of software companies in general is down," Schaub said. "And the attempted acquisition of PeopleSoft has done Oracle no favours."

Alorie Gilbert writes for News.com