Microsoft has had a lot of practice in delivering statements to the Department of Justice over the years. But its most recent such statement — that it has no plans to enter the enterprise application market within the next two years — is probably one of its most ludicrous. (And that is saying a lot.)

The DOJ is fighting Oracle's attempt to buy PeopleSoft. At the crux of the DOJ's case is its claim that there are only three enterprise application vendors: Oracle, PeopleSoft and SAP. The argument? Oracle's acquisition would cut that count to two.

According to news reports, Microsoft Corp. executives recently provided a sworn statement to the DOJ that allegedly upholds the DOJ market definition.

Put aside the fact for a moment that Oracle and Microsoft are bitter rivals. And that one of the last things Microsoft would like to see is Oracle buy PeopleSoft. Already, these two factors would lead me to question the veracity of Microsoft's statement.

But to these, I'd add a third objection. Microsoft is mischaracterizing itself as a small-time player in the enterprise app market.

Microsoft watchers typically define Microsoft Business Solutions as Redmond's SMB (small and mid-size business) unit. But Microsoft's emphasis with MBS, undeniably, has been on the "M," or mid-sized, segment with its Great Plains, Solomon, Navision, Axapta and MS CRM wares. (And the high end of "M," at that.)

Last summer, Orlando Ayala, senior VP in charge of Microsoft's evolving Small and Midmarket Solutions & Partner Group, made some bold and well-documented claims about Microsoft's MBS targets. Ayala made no bones about the fact that his small and mid-market team has been pursuing enterprises all the way up the food chain.

Ayala told the Seattle Times that his team was calling on customers with as many as 10,000 employees. To me, a company of that size constitutes an "enterprise."

According to the Seattle paper, Ayala said: "This will be a head-on collision with Oracle, you bet. They are moving down to smaller customers, and we are moving up."

Read More from The Seattle Times on Ayala Here

And Here

Another MBS official told me last year that Microsoft's target with MS CRM, for example, were "corporate-account" customers with sales of $800 million or less. By this categorization, all companies smaller than the Fortune 1000 could be considered fair game. Again, in my book, these kinds of customers are "enterprises," not your typical mom-and-pop shops.

David Thacher, general manager of customer relationship management for Microsoft, has made similar admissions, Re: Microsoft CRM. Thacher told financial analysts last March that Microsoft has had the most success selling its CRM package to larger mid-size customers. And the most promising prospects for the product, going forward, are the so-called corporate accounts that are at the upper end of the mid-market, he said.

Microsoft is a player in the enterprise application market.Whether or not Redmond intended to be in this space is up for debate. (I myself would argue this was its strategy from the outset.) But the way Microsoft has priced and packaged its MBS wares has created strong demand from larger companies.

What's your take? Is Microsoft simply trying to throw a monkey wrench in Oracle's takeover attempt? Or is Redmond justified in its claims?

Write me at mswatch@ziffdavis.com and let me know what you think.