The head of Oracle called competitors "idiots"

Without tricks of Larry Ellison, co-founder and CEO of Oracle, business of the company with an annual turnover in one trillion dollars would be large, significant, but boring. Oracle, along with titans like IBM, Hewlett-Packard and Cisco Systems, makes technologies which the largest world corporations use.

After several months of calm when in this market, apparently, "interregnum" was established, Ellison fell back into the old ways again. For the last two months he called Board of Directors of HP company by "idiots" for resignation of the head of the company Mark Hurd, employed him, and then derided appointment of the new CEO of HP. In the e-mail to the edition The Wall Street Journal, Ellison called election as the head of HP of the former CEO of SAP Léo Apotheker as "madness" and said that Board of Directors of HP it is necessary to dismiss in full strength.

Also it released a series of jokes to the co-founder of SAP Hasso Plattner for "a hairstyle a la Einstein". Though, for justice, It should be noted that Plattner strong salted once to Ellison, having overtaken him in a sailing race. According to Marc Benioff (Marc Benioff), chapter of Salesforce.com and the former top manager of Oracle, such is Ellison manner – strictly to let know to competitors "I am your enemy". Benioff himself also in recent weeks listened to several serious attacks from its party.

Oracle vs Salesforce.com

Meanwhile, oratorical exercises of Ellison it is not just theater which is developed on the stage of Silicon Valley. Behind its attacks there is a serious gain of the competition in corporate IT market. And the interests of direct competitors not that concern, and are seriously crossed with each other. The equipment of such producers as Dell and HP works with software of competitors, and software, in turn, needs "iron". The ultimate goal of each vendor consists in selling software and iron together that will allow corporations to solve their global problems, such as management of global supply chains or business data analysis.

"15 years we lived in state of peace when each vendor had patches, and all this world was separated into perfectly functioning the camp and the coalition", - the vice president of Info-Tech Research Group James Alexander says, - "Today these children need to hold top lines on profits and a respective share of the market, and the only way to perform it - penetration due to acquisitions into others business".

Ellison, the person having the sixth in value status in the world carries the corporate strategy as a bandage on sleeves of the expensive Italian suits. And all his colourful expressions mean no other than ambitions of Oracle on capture of new segments of the market. Next year the market is entered by a platform set of business applications from corporation under the name Oracle Fusion Applications, the integrated collection of software of the absorbed companies like PeopleSoft, Siebel Systems and others.

It will deliver Oracle in the direct competition to Salesforce.com providing CRM through a web. By the way, at the annual client OpenWorld conference last month Ellison during the presentation showed such slad on which the modified cover of the book of Benioff "Behind clouds" was placed (Behind the Cloud): on it the text "Far behind clouds" appeared (Way Behind the Cloud). Benioff says that he is delighted with tactics of the former boss. The press secretary of Oracle Deborah Hellinger refused to comment on this incident.

Oracle vs HP и SAP

It is obvious that Ellison estimates threat which proceeds from HP much more seriously what also his expressions confirm. Both HP, and Oracle stake on integrated solutions which can satisfy any IT business needs. Holding this purpose before eyes, in 2009 Oracle paid $7.4 billion for Sun Microsystems, having bypassed IBM. Last month Ellison told analysts that he also considers the possibility of purchase of the producer of chips that will allow corporation to promote in the market of semiconductors.

Rob Enderle, the analyst, believes that Ellison hoped earlier that HP will sell to Oracle a number of strategic assets for fight against the main enemy of corporation - IBM. Now Oracle intentionally belittles opportunities and value of HP in the world market. At the same time Hewlett Packard also expands business borders: it purchased Palm for $1.2 billion in April and bypassed Dell in fight for 3Par, having paid $2.4 billion for vendor of solutions for data storage.

According to the source, the Apotekera device, close familiar with process, in HP, he was invited counting upon its experience of promotion of the software in the world market. "I do not think that they will be ashamed to strike Oracle back", -Bill McDermott, the co-founder of SAP [[Makdermott Bill|]] says.

Analysts believe that HP can move towards rapprochement with SAP to salt Oracle. According to the analyst of IDC Hilva (Al Hilwa) Is scarlet, now they have a high potential for rapprochement though it and is the worst of Ellison nightmares. It will mean eventually competition gain, reduction of prices and growth of activity of extravagant public tricks of Ellison, the expert considers.