Who says technology lacks drama? Just when I thought SCO/IBM would dominate the summer stage, along comes the hateful dance between Oracle and PeopleSoft. From watching all this silliness, one might get the impression that technologists are greedy goons completely lacking in social graces. As I’ve pondered Oracle’s situation, it has become clear that Larry Ellison, the software company’s egotistical CEO, has finally gone too far. In reflecting on Ellison’s life, perhaps this is the beginning of God’s wrath that humbles the mighty and destroys the unrepentant.
I don’t know Larry Ellison. I’ve never met him. I’ve never worked for Oracle. I’ve never bought any of their products. However, it’s hard to be in technology and not know of Larry. And what’s considered common knowledge about Larry is enough to condemn any man.
Just as an interesting measuring stick, I considered public claims about Ellison and compared them to God’s moral law – the ten commandments. Based on broad interpretations (e.g. Jesus taught that to be angry with your brother is to be guilty of murder – see Matthew 5:21-22), Ellison would be guilty of breaking all ten commandments. Although I can’t know whether the published reports are true, Ellison does little to suppress them, in fact seeming to enjoy the notoriety. Repentance is not in his vocabulary.
This is best summarized by the title and implied punchline of the authorized biography written by Mike Wilson in 1997. The Difference Between God and Larry Ellison (God doesn’t think He’s Larry Ellison) portrays a self-centered man who has translated his knack for guessing counter-intuitive future technology trends into incredible wealth that has further fueled his ego and his idolatrous passions.
At one point in 2000, Ellison’s wealth was virtually equal to Bill Gates’ and they shared the title of richest man in the world. Although much of this success is due to the excellent products that his company has produced and the very real value those products create for Oracle’s customers, there’s clearly a dark side to this success. Even the official publisher’s description of Wilson’s authorized biography summarized it this way: “He’s the ruthless businessman who has used misdirection and half-truths to create one of the great high-tech success stories.”
In fact, it is these half-truths and misdirection that point to the great temporal risk to Oracle, the corporation. Ellison’s personal management style and the aggressive, growth-at-all-costs culture closely parallels those of many of the most notorious fallen executives/companies of the past few years. Although the company has, so far, escaped significant problems, there have been plenty of close brushes with scandal. The company got mixed up in California’s budget and political mess, selling the state $41 million in software it didn’t need. Ellison also didn’t exactly help his reputation by selling $870 million in Oracle stock shortly before the company reported disappointing earnings early in 2001.
However, it’s Ellison’s outlandish behavior towards PeopleSoft that could get the company into real trouble. The range of potential outcomes for Oracle in this mess includes:
- Losing a lengthy and expensive battle for the hearts and shares of PeopleSoft’s stock owners, during which SAP, Microsoft, and other competitors take share from Oracle, PeopleSoft, and J.D. Edwards as customers nervously flee from the fray. (SAP has already launched an initiative to take share during the crisis.)
- Winning the battle for shareholder approval, but then losing the war due to lawsuits (at least two have already been filed) or regulatory antitrust barriers.
- Completing the acquisition, but losing all the value as customers and employees flee to competitors. (Ellison initially made it clear that he would stop selling PeopleSoft products and merely transition existing employees and customers to Oracle products.)
None of these sound pleasant, and all of them are the direct result of Ellison’s attitude towards this deal. He refused to follow normal processes to achieve a friendly merger, and instead launched a bitter hostile bid that has alienated all parties. And he has made no effort to win major stakeholders to his side, instead disparaging the products to which important customers have proven loyal.
This type of approach may have been justified when Oracle was first starting out on the founders’ $2000 in savings, or during the first dozen years when the company was focused on doubling sales every year. But this style does not become one of the world’s largest technology companies and it reflects an attitude that has become dangerous and counter to the company’s growth and survival.
In an interview in an Oracle publication celebrating the company’s 25th anniversary, Ellison said “When you’re the first person whose beliefs are different from what everyone else believes, you’re basically saying, ‘I’m right, and everyone else is wrong.’ That’s a very unpleasant position to be in. It’s at once exhilarating and at the same time an invitation to be attacked.”
If Oracle continues to stand with Larry Ellison as they jointly shake their fists at the rest of creation, saying “We’re right and everyone else is wrong,” then they shouldn’t be surprised if the attack they receive is mighty and perhaps even fatal. Could this PeopleSoft foolishness be the beginning of that attack? Only God knows.
Russ McGuire is Online Director for Business Reform. Prior to joining Business
Reform, Mr. McGuire spent over twenty years in technology industries, performing various roles from writing mission critical software for the nuclear power and defense industries to developing core business strategies in the telecom industry. Mr. McGuire is currently focused on helping businesspeople apply God’s eternal truths to their real-world business challenges through Business Reform’s online services. He can be reached at [email protected].
WATCH: Tucker talks with only FTX executive who wasn’t a partisan Democrat
Tucker Carlson