Peoplesoft Inc - Growing Pains

GROWING PAINS

In 1994, Fortune named PeopleSoft the nation's fastest growing software company. The company's revenues increased from $6 million in 1990 to $113 million. New products were unveiled, including PeopleSoft Financials for the Public in 1994, and applications for the education, manufacturing, healthcare, financial services, and government sectors the following year.

In 1995, PeopleSoft ventured into the manufacturing arena. It established PeopleSoft Manufacturing Inc. (PMI) as a separate company to shelter the larger organization from the risks associated with the new venture. Some industry analysts criticized the company's entry into the manufacturing market as too late. Some PeopleSoft customers who were using the company's human resources and accounting software were unable to wait for a manufacturing application and pursued other options.

PMI—which actually included PeopleSoft Manufacturing Inc. and PeopleMan LP—was formally acquired by PeopleSoft in 1996 along with Red Pepper, a manufacturing and supply chain software developer. For the remainder of the 1990s and into the 2000s, the company would live up to the accolades for fast growth it received from Fortune. PeopleSoft began acquiring companies at a rate of 1-2 per year through 2001, including Salerno Manufacturing Systems, Campus Solutions, and TeamOne in 1997; TriMark Technologies and Intrepid Systems in 1998; Distinction Software in 1999; Vantive and Advance Planning Solutions in 2000; and SkillsVillage in 2001.