I was waiting for when the first World customer came to the realization that theres no way that PSFT would continue support of World....
This might be a good thing however, it certainly would keep everyone concentrating on OneWorld, and will encourage upgrades - but you are indeed correct, that many might just jump to Peoplesoft if the product suits their business well.
However, I don't believe that this is the end of the OneWorld product. The name "J.D. Edwards" might disappear, but "OneWorld" will most certainly last. I am reminded of when Microsoft purchased Fox Software - the name "Fox Software" disappeared, and MSFT incorporated much of their code into their own products (MS Access for example) - but you can still buy Microsoft Foxpro today - and it is still very much supported, almost 10 years after the acquisition.
I believe therefore that something similar will occur, that Peoplesoft OneWorld will be a product NEXT to Peoplesoft 8 (of course the version numbers might change to ally confusion) - and Peoplesoft will sell the products to two seperate types of customer. Of course, they will always prefer to sell their own product to the customers that only require a "Generic" product - so, like Foxpro is today, OneWorld will become a specialist niche product.
I do believe, however, that in the mid-term, PSFT will lay off the majority of the consulting organization at JDE. Look for a reversal of the agressive consulting technique, since JDE consultants are expensive, and it is a PSFT policy to push partners to consulting, rather than doing it themselves. I would certainly be printing my resume if I were at JDE today.
I have already heard of projects being placed on hold. Expect more of the same. I don't believe they'll be cancelled, but more information needs to be forthcoming at this years Focus.
So - I might have been a little more negative when I saw the news first thing this AM, but now I think that the product might have a chance to continue under Peoplesofts name - I feel theres probably some opportunities to come along the line. OneWorld is still a superior product above Peoplesoft (hence the reason for the buyout) - and this is the first time a company realized this. I think Peoplesoft customers might actually be the ones that should worry more.