Microsoft's dilemma

Microsoft briefly pondered taking a minority stake in PeopleSoft to help it fend off Oracle. "Thinking about this PeopleSoft bid by Oracle made me wonder if we should approach them and suggest a minority investment to bolster their independence in return for a modest platform commitment," Microsoft Chairman Bill Gates said in an e-mail to CEO Steve Ballmer the day after Oracle announced its PeopleSoft bid.

Now Microsoft execs insist that they have no intention of competing with SAP, Oracle or PeopleSoft to supply the big enterprises with core business software. Smaller companies with less than 500 employees is the target...for now. News.com's Alorie Gilbert has the full scoop on the latest revelations from the Oracle/DOJ trial...