Now that Oracle Corp. has gotten what it wanted -- ownership of PeopleSoft Inc. -- it must face thousands of users who are skeptical about its intentions.

Having overcome formidable obstacles to its hostile takeover bid, including a resistant PeopleSoft board, staunch opposition from former PeopleSoft CEO Craig Conway and a legal challenge from the U.S. Department of Justice, Oracle"s biggest test may well be winning the trust of the installed base of the 12,700 customers that it"s inheriting.

Two of the 10 users interviewed about the deal last week said they were guardedly optimistic about Oracle"s ability to earn their business. But all of the users cited concerns about Oracle and said they were putting the vendor on a sort of probation before making any decisions.

Robert Robinson, business systems supervisor at Durr Industries Inc. in Plymouth, Mich., said he needs not only a promise from Oracle that PeopleSoft"s applications will be supported, but also a better explanation of its plans for the World and EnterpriseOne product lines that PeopleSoft acquired with its purchase of J.D. Edwards & Co. last year.

Durr, an automotive supplier, is about to upgrade from World to EnterpriseOne. "We"re scrambling to move to the most current version of the software, but now we have to wonder if we"re getting our ducks in a row just to have to prepare for another conversion to a hybrid Oracle/PeopleSoft/J.D. Edwards product," Robinson said.

"Oracle has to win us over," agreed Andrew Albarelle, principal executive at Denver-based staffing company Remy Corp., which runs PeopleSoft"s financial software. "I have not seen a clear message from them."

Albarelle said Remy had planned to license several additional application modules from PeopleSoft late this month. But now he will hold off and evaluate his company"s options for maintaining its ERP system. He said he will consider building applications in-house as new functionality is needed and look at third-party maintenance providers.

Albarelle isn"t the only user thinking that way. In a recent survey of 150 PeopleSoft users by Boston-based AMR Research Inc., 15 percent said they would immediately drop their software maintenance contracts with the vendor if it was bought by Oracle.

Burden of proof

Other PeopleSoft users said they plan to treat Oracle like any other potential supplier.

"Like with any other vendor, if they want me to buy more or something new, they need to find a way to show me they care about my firm and are looking to help us succeed," said Bubba Tyler, CIO at Conshohocken, Pa.-based Quaker Chemical Corp., an EnterpriseOne shop. "They have to prove our ongoing relationship will lead to mutual value and not just their profits."

Some customers are more inclined to believe that Oracle will stick to its pledge to continue enhancing and supporting the acquired applications.

"I would have to say that at this point, Oracle is saying all the right things and making the type of commitments most customers, including me, would want," said Fred Pond, director of information services at Schnitzer Steel Industries Inc. in Portland, Ore., and president of the Quest International Users Group for J.D. Edwards customers.

Pond said he"s open to working with Oracle but wants to see it deliver on upgrades that are in PeopleSoft"s pipeline. He also wants bug fixes and regulatory updates on any currently supported version of EnterpriseOne.

Uncertainty prevails

If nothing else, PeopleSoft"s agreement to accept Oracle"s offer lifts a cloud of uncertainty that had been hanging over users for months, Philip Carnelley, research director at London-based consultancy Ovum Ltd., said in a report. "At least now (PeopleSoft customers) will get some certainty, even if they don"t like the outcome," he wrote.

But some users are resigned to finding a new application vendor in the long term.

"The chances are good we"ll be someone else"s customer in 10 to 12 years," said Casey McMullen, CIO at Agri Beef Co., a beef supplier in Boise, Idaho. "Oracle has a long row to hoe if they think they"re going to woo me into doing business with them."

McMullen said he"s no fan of Oracle, the company"s products or its flamboyant CEO, Larry Ellison. He said he may stay a customer if Ellison departs and Oracle continues to develop PeopleSoft"s products and ensures that they can run on multiple databases, such as SQL Server.

Stacy Cowley of the IDG News Service contributed to this report.