The Oracle-PeopleSoft merger will create the world's second-largest provider of supply chain management software.
AMR Research said the combined company will have an 11 percent share of the estimated $5.4 billion $SCM software market in 2004, the same as rival SAP.
The study found that the Oracle-PeopleSoft will have overall applications business of $5.5 billion for 2004, also making it the world's second-largest vendor with an estimated 12 percent share of the worldwide enterprise applications market.
"Oracle's acquisition of PeopleSoft makes the combined entity a much more formidable competitor to SAP in the faster growing sub-segments of the enterprise applications market, including Customer Relationship Management, Supply Chain Planning, and Human Capital Management," said Bruce Richardson, senior vice president of research for AMR. "Whether Oracle can continue to cut into SAP's share will depend entirely on the successful integration of the two companies."