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What's the Oracle Trial Against SAP Really About?
Ponca City writes "Chris O'Brien writes in the Merucry News that Larry Ellison's lawsuit against bitter rival SAP gives Ellison the opportunity to deliver the final humiliation to his company's greatest foe of the past decade while sending a blunt message to Oracle's next great enemy, Hewlett-Packard: 'This is who you are fighting. This is how determined we are to win. Get ready.' O'Brien writes that it's a crafty bit of psychological warfare that is already having the desired effect. When Oracle decided to subpoena former SAP CEO Léo Apotheker after he was appointed president and CEO of HP, Apotheker decided to stay out of the country to avoid testifying so now we have the bizarre spectacle of the new CEO of the largest technology company in the world unable to show his face in Silicon Valley. Ellison loves to fight. In gaining control of PeopleSoft, Ellison demonstrated the love of combat and confrontation that has made him one of the wealthiest men on the planet. He waged an 18-month hostile takeover bid to acquire the company, and fought off an effort by the US Department of Justice to torpedo the deal. 'Oracle probably could have settled this case [with SAP],' writes O'Brien. 'But why pass up a glorious chance to subpoena Apotheker and send your new opponent running in circles?'"
Rustling up a quick summary here for anyone looking for background:
http://en.swpat.org/wiki/Oracle_v._SAP_(2010,_USA)
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This isn't my area, but perennial cost cutting was the problem. After a solid start reducing fat and focusing on core missions, old Jack ended up going off the rails simply because the money kept rolling.
His philosophy shared a great deal in common with the a very unpopular practice in modern governance known as a strategy of tensions.
He wanted to keep up to 10% of the talent force on steady march out the door regardless of their performance and regardless of how well things were going. This cost cutting measure depends upon the other 90% not leaping to the conclusion that an arbitrary management will eventually come for them as well... And hoping that they instead believe there was something inferior about the 10%; hoping that they will strive to validate the faith of retention that their fearless leader has placed in them. Not a good situation.
Then there was the idea to cut all involvement in any endeavor where the company was not challenging for the crown of industry leader. This of course removes innovation and cross-pollination leaving the remaining servants absent vision and experience coming from outside their own little box.
Wikipedia claims he was known as Neutron Jack. I think that may be taking it a little too far, but you get the point.