The New York Times > Technology > Oracle Says Fear of Microsoft Led to PeopleSoft Bid "Mr. Ellison said in Federal District Court in San Francisco that Oracle believed that acquisitions were essential to its ability to compete with Microsoft, which - along with SAP - was clearly poised to put pricing pressure on the market for corporate application software. Companies use the software to manage tasks like procurement, customer relations and human resources.
"The second Microsoft enters a market, prices drop like a rock," Mr. Ellison said. "Microsoft's strategy is always to be the low-cost provider, up to and including zero. It was fundamental to our decision to buy PeopleSoft."