News Scan

Noteworthy

Wells Fargo Buys Into Check Imaging Company

In a move to strengthen its check imaging capabilities in the post-Check-21 environment, Wells Fargo took an ownership position in Viewpointe LLC, a Charlotte, N.C.-based provider of check imaging and archiving services. The bank also signed a long-term agreement to use Viewpointe's national check image archive, which gives the service provider's customers access to over 2 billion new check images each month. Customers include Bank of America, SunTrust Banks and U.S. Bancorp.

Using Viewpointe's services, Wells Fargo will be able to store, retrieve and share check images with other organizations. "Our investment in Viewpointe reflects our belief that image sharing, rather than image movement among individual banks, is the most effective way to improve efficiency and service quality," says Webb Edwards, executive vice president of Wells Fargo Services. "We believe Viewpointe has tremendous potential to play an even bigger role in the future payments arena as it expands services and gains additional customers."

Connors Quits Microsoft

John Connors, CFO of Microsoft Corp., announced that he will leave the software titan to become a partner in Bellevue, Wa.-based venture capital firm Ignition Partners LLC. Connors has spent 16 years at Microsoft in various positions, including CIO and vice president of the worldwide enterprise group.

Microsoft plans to consider both internal and external candidates for the CFO position, and Connors will assist with the transition.

Finance Trials Of the Century

The final chapters of the Enron scandal have yet to be written -- and the courtroom drama phase is only just beginning.

Former Enron chairman Kenneth Lay, former CEO Jeff Skilling and former chief accounting officer Richard Causey will stand trial on criminal charges of fraud and conspiracy in Houston after U.S. District Judge Simeon Lake denied their appeal for a change of venue in January. At press time, Lake had not yet scheduled trial dates.

Also in January, the Supreme Court agreed to hear an appeal by Arthur Andersen LLP against a 2002 criminal conviction stemming from its shredding of documents in connection with the Enron scandal. The hearing is set for April.

ERP Players Woo PeopleSoft Customers

Hoping to lure PeopleSoft customers disenchanted with that company's buyout by Oracle Corp., Germany-based enterprise resource planning (ERP) software provider SAP is offering what it calls a "safe passage program" to the approximately 2000 companies that use both SAP and PeopleSoft applications.

"Our first priority is assuring SAP customers that their relationship with SAP protects them from this disruption," says Bill McDermott, president and CEO of SAP America Inc. "And it is clear that companies running PeopleSoft and [J.D. Edwards] solutions have serious concerns about the future of those software packages and how they will be supported." J.D. Edwards is a PeopleSoft brand.

In January, SAP acquired Bryan, Texas-based TomorrowNow, a third-party provider of enterprise maintenance and support for PeopleSoft customers.

Microsoft Corp. is offering PeopleSoft customers a migration program that provides data transfer technology, price discounts on Microsoft products and services, and strategic guidance to help them switch to Microsoft applications. "Businesses that use PeopleSoft technology are facing some difficult choices today, and we're committed to providing them with the best options for moving forward," says Doug Burgum, senior vice president, Microsoft business solutions business group.

Hyperion and OutlookSoft Square Off

Hyperion Solutions Corp. filed a Federal court action against OutlookSoft Corp., charging that company with infringing two patents relating to its financial consolidation, reporting and analysis software. The lawsuit was filed in the U.S. District Court for the Eastern District of Texas. "We are committed to protecting our intellectual property and maximizing the benefits of our technology for our customers, partners and shareholders," says John Kopcke, Hyperion's chief technology officer. "We will vigorously protect our intellectual property."

According to Michael Morini, president of OutlookSoft Corp. North America, the lawsuit is without merit, and his company plans to conduct a vigorous defense. "These technology patents have no relevance to the architecture of the OutlookSoft Everest platform," notes Christian Gheorghe, OutlookSoft's chief technology officer. OutlookSoft has filed a counterclaim charging Hyperion with infringing two of its patents.

Gartner To Acquire Meta Group

IT research and analysis provider Gartner Inc. has announced that it will acquire Stamford, Conn.-based strategic consulting services firm Meta Group Inc. in an all-cash transaction valued at $10 per share, or approximately $162 million. The boards of directors of both organizations have unanimously approved the agreement.

In 2003, Gartner earned $858 million in revenue from its 76 locations around the world, while Meta Group generated $122 million in revenue from 52 locations. Says Gartner CEO Gene Hall, "This transaction is an exciting opportunity that will give us increased depth in key sectors, geographies and markets and an increased ability to seize revenue opportunities with the addition of Meta Group's well-trained, successful sales force."