Larry Ellison Rejuvenating Hawaii's Sixth-Largest Island (Which He Owns)
McGruber writes "In June of 2012, we discussed news that Larry Ellison, co-founder and chief executive of Oracle, purchased the Hawaiian island Lanai for $300 million. Ellison now owns nearly everything on the island, including many of the candy-colored plantation-style homes and apartments, one of the two grocery stores, the two Four Seasons hotels and golf courses, the community center and pool, water company, movie theater, half the roads and some 88,000 acres of land. (2% of the island is owned by the government or by longtime Lanai families.) Now Ellison is attempting to win over the island's small, but wary, local population, one whose economic future is heavily dependent on his decisions. He and his team have met with experts in desalination and solar energy to change the way water and electricity are generated, collected, stored and delivered on the island. They are refurbishing residential housing intended for workers (Mr. Ellison's Lanai Resorts owns and manages 400 of the more than 1,500 housing units on the island). They've tackled infrastructure, such as lengthening airport runways and paving county roads. And to improve access to Lanai, Mr. Ellison bought Island Air earlier this year and is closing a deal to buy another airline."
This is impossible, no private enterprise builds infrastructure, works on long term projects, etc. Only governments do that.
--
For the sarcastically challenged: Ellison is expecting some form of a return from this purchase, all purchases that are not for consumption are investments and he is not going to 'consume' his properties, so whatever it is he does with infrastructure, etc., it's all designed to try and create revenue streams, which is what private enterprise does and which is why infrastructure projects should all be privately funded, then their economic viability, success or failure are on the backs of the owners and not tax payers.
You can't handle the truth.
Well, I hope that he manages to keep good relations with the natives or they will turn the tables on him. He had better have a backup strategy for this transaction.
Ezekiel 23:20
You know, for the lair.
This is the end result. Oligarchs. Trickle Down Economics was a scam.
* Carthago Delenda Est *
1. Buy property / imaginary property
2. Close it up
3. Anger the community
4. Wait for staff to quit
5. Replace existing features with unwanted bling
6. Force users of Island #5 to use the new facilities offered on Island #6
7. ?
8. Profit
[Rent This Space]
Sound like somebody's been playing too much Tropico.
Except he holds the whole IT industry hostage for 78.32 billion dollars.
Feudalism is back! Surf's up! I no kea!
Sounds like they've aquired a rich benevolent dictator and Ellison is enjoying playing the role of benevolent king over his mini kingdom. It's going to be nice, but since Ellison is 68 or whatever, who knows how long it can last till the next rich nit-wit comes along.
Interesting retirement plan. By the time he needs it, he'll be as close to godhood with the islanders (no, I'm not underestimating their intelligence or thinking of them as primitive natives here), as is mortally possible ...
It sounds a whole lot like Ellison is planning to just break-away from the US and declare his island a sovereign state.
And, frankly, he can't do a worse job than most of the other developed nations are doing these days.
Larry is developing a plantation, not a municipality, so comparing this paragon of capitalist initiative with - say - the rest of Maui County is invalid. Lanai Island Holdings, LLC is just another plantsite, no different in principle than the Oracle Corp HQ. So, he's investing just for himself and David M. Based on his expressed plans, I for the most part it works out. But, it's reasonably obvious that this is a hobbyist pursuit.
The rest of the County is home to a variety of people, companies, and competing interests, so it makes sense that infrastructure that serves their common good is held as public trusts. Quite a bit of the work is contracted out to private firms, particularly when it requires occasional use of capital equipment it doesn't make sense for the County to invest in. But, by and large, private ownership of utilities and other public services hasn't proved to be anyone efficient than public ownership. Running such enterprises pits maximizing public utility against maximizing private return on investment, and the public loses if/when rent seeking in the part of a private owner perverts the direction of public policy.
Luke, help me take this mask off
Overpriced? Maybe. Half-assed? Doubt so.
Oracle is expensive, but if it were really overpriced then you'd see lots of cheaper alternatives. For a lot of workloads, something like PostgreSQL will get the job done for a fraction of the price. When you really need something at the high end, however, Oracle or a small handful of other companies will charge you similar amounts. The real problem for a company like Oracle is the same as the problem for SGI. In the '90s, a database with a few GBs of data was something you needed Oracle (or similar) and a lot of hardware for. Now, a cheap commodity machine can keep the whole thing in RAM for read-only queries and can write to an SSD (or a few in RAID-1) for a few thousand dollars, including the time it takes someone to set it up. The number of companies that have data of a size where an Oracle DB will work is increasingly small: at the very high end, you have companies like Google and Facebook that can't use any off-the-shelf solution, and at the other you have companies that can get away with cheap commodity hardware and an open source RDBMS.
This is why companies like IBM and Oracle are focussing heavily on business applications and vertical integration. They may be expensive, but there's a whole class of medium sized enterprises for whom it's a lot cheaper to periodically give a huge pile of money to Oracle periodically than it is to have a large in-house IT staff.
I am TheRaven on Soylent News
He's got money for this, but no money to give me contact with an Oracle support engineer on my continent who speaks English, and can reach me in a timely fashion.
READY.
PRINT ""+-0
Not quite (yet) Mr. Lee's Greater Hong Kong.
He needs a big sign that says "Your Ask.com toolbar dollars at work"
Private companies may exist to profit for the most part, but the fact is that competition forces them to become efficient and sacrifice profit.
Alexander Chung-Sik Finkle-McGraw would be a good choice.
And, dare I say, for fear of being labeled a rich-hater*, quite possibly he's not being taxed enough.
*I'm not, but this is ridiculous.
I built this ship so that I could retire to some tropical island filled with naked women. That's Zefram Cochrane.
This isn't about profit!
There's plenty of precedent for this: It's called "feudalism". We can now discuss whether Ellison will be a good or a cruel feudal lord.
claiming that "we cant give away products for free. it doesnt make business sense", oracle president larry elliosn announced that his ownership of the island now extends to the air people breathe. "if they are breathing my air, i want to somehow try to monetize and get a return to your shareholders" ellison said.
happened under a republican president, the son of Reagan's vice president, whil the treasury secretary was a former Goldman Sachs CEO.
you are hereby banned from ever complaining about 'socialist democrats' ever again. ever.
oracle just cant be beat. its open mindedness when it comes to NSA's "reboot" of the 4th amendment has made all the difference.
Benevolent dictatorships are fine as long as you agree with the king/laird/CEO/ whatever.
Fall out with him and you'll lose your house, your job, and all those related to you might suffer. Rich people running islands is not a great long term plan. Ask the population of Eigg in Scotland, for example. All good until your nice rich person gets bored with his toy and neglects local services that people need, or sells it to a Bad Rich Person, etc.
I would have though US citizens, of all the places in the world, would have a historical perspective on what happens when uncaring kings run your country, and what the poor but honest citizens should do to resolve the lack of decision making power.
Very curious. Of course Ellison might be a lovely chap and improve the situation - it sounds like people do need improved services... but one man owning an island and having no accountability on his decision making power over people's homes and jobs, this makes me nervous... it's not like the people living here can change employers or move down the road if they are unhappy, it's an island. I'd be interested to hear his thoughts about the democratic processes, how the local people have the option to veto his decisions if they disagree, and so forth.
If he's really in it for the long term, wouldn't it make more sense to go for independence from the USA and ask the people to elect him as their President?
Will I step off the plane to find Larry Ellison wearing a white suit and smiling? "Welcome! To Ellison Island" Well I guess this makes a fun experiment for Mr. Ellison. Solar power, desalination technology, etc. Sounds like the island is dependent on tourism. As long as he doesn't crown himself King and demand that the residents kneel before him.
what about toll roads that are semi private? in some areas they seem to better in better shape then other roads that don't have tolls on them.
The problem with Oracle is two-fold. Large organizations have products chosen by buyers, not developers, and PostgresSQL et al do not buy lunches, golf outings, or vacations. In addition, many people after having Oracle around for a bit make the mistake of using it as more than just a database, putting business logic, etc, in their database layer using Oracle's proprietary extensions. This makes it extremely difficult to switch products. Oracle can raise prices quite a lot and people pretty much have to keep paying. This is why typing your business to a proprietary product or format with a single provider is generally a very bad idea.
De plane, De plane, Boss, saz little gnome, Mark Hurd.
Ellison will meet Stevie in his Fantasy episode.
is "That's nice but why are you hollowing out the mountain?"
Did you know 80 to 90% of the moderators on slashdot wouldn't recognize a troll even if one dragged them under a bridge.
If I was a multi-billionaire... I'd probably want to play "Sim City Island Paradise - Ultra Realistic Edition" too...
I wish I could own my own island. However, I don't think I would want to make the natives restless. Natives have ancestry going back to before the monetary system that is now facilitating this gentleman to own their island. Maybe there will be wonderful java plantations, dancing in the streets and utopia.. ~not wanting to be judgemental out of mere jealosy.
Ellison has a history of being just terrible. When the San Carlos airport cite him for breaking noise ordinances when he flies in during "quiet" hours -- you know, waking up uncounted residents in the area -- he just laugh and pays the fine, over and over again. Now he's suing the airport in San Jose airport so he can do the same thing to that city's 800,000 residents.
Hawaiians can expct zero consideration from this proven douchebag.
Tom Geller
I wonder if he has an account?
The dude is playing Tropico IRL!
Hyperbole in a headline? No, I just can't beleive it.
Ellison does not own this Hawaiian island. It is a portion of a state, as in one of the states that comprise the United States. He holds title (or more likely, a bank does) for a significant portion of the lots on this island. He does not "own the island".
Even if he aquired the title to every square mm of land on that island, he still would not own it. That just allows you to build on and occupy the land at the governments pleasure. And remember, even if you have a title to a plot of land, whatever is below the surface certainly does not belong to you. And because of the construct of Eminent Domain, you only have the right to occupy/use a portion of real estate as long as the government has no use for it.
Unless you are the federal government, you cannot truly own a shred of real estate in the real sense of the word "own". It's never fully yours to do with as you see fit.
Ellison is a prepper. He just has more money and resources than your average paranoid, anti-social TEOTHAWKI person.
Every mans' island needs an ocean; choose your ocean carefully.
It sounds like Mr Ellison is on his way in creating his own Jurassic Park. He'll probably use *nix too so the kids can help out.
LoB
"Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
I don't. It's happened more than once where I had slow query performance, and EXPLAIN PLAN showed that the that several of the available indexes were not being used at all. Manually specifying the indexes in the query magically fixed the problem. Any DBMS that has a query planner that fails to use available indexes when dealing with relatively simple queries gets my vote for being considered "half-assed".
I think they used to call these company towns, that is what the government got involved.......
Writing as a long time Maui resident (the island of Lanai is part of Maui County) the jury is still out on Ellison. He follows another billionaire, David Murdock, who also had big plans for Lanai and put big bucks into the island for decades -- results negative cash flow and a sea of red ink. Murdock was none too popular with local population and few tears have been shed on his partial departure (he retained some rights to energy development). From the 19th century until the present day Lanai has had a whole string of serial megalomaniac owners whose priorities included religion, plantation agriculture and most recently resort and real estate development.
Current plans call for large scale energy development - most frequently mentioned is running a undersea cable from Lanai to Oahu to use energy created on Lanai to power Honolulu. If successful it will be one of the most expensive and technically challenging projects of the century. If it turns out like most things on Lanai in years past it will cost a lot and not live up to expectations.
Whether having one person or company own so much of an important part of our state is a good thing is highly questionable, but it seems to be a moot point. In the past there have few public benefits from prior owners and it seems unlikely that Ellison will be much different. In the meantime he joins a long list of the mega rich who want to perch here in their own little bubble, it just his bubble is bigger.
and If I don't like Larry and I live on that island I can boycott him. Wait, no. I can't. He _owns_ the entire island. Seriously, can we all just just read the wikipedia article on the railroad trusts and call it a day? Oh, and vote. We can vote. Heck, I'll bet the number of successful changes due to election dwarfs the number of successes from a boycott. Can anyone name me the last successful large scale boycott?
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Why do I get the feeling this whole thing is like a big billionaire's version of SimCity for him? I wonder what "natural" disasters he has in store?
For the record, Google still makes heavy use of MySQL.
Now if only Larry Ellison were allowed to turn the island into sovereign country he could build Transhumania (see Zoltan Istvan book Transhuman Wager) and make rapid advancement in medical research.
Larry Ellison is 69 years old and it doesn't matter how much money he's got if he can't be around to enjoy them.
Oracle is expensive, but if it were really overpriced then you'd see lots of cheaper alternatives.
Not exactly... customers can't exactly move to another database easily. What are you going to do if you are some enterprise like an airline or bank, export to CSV and then import? And actually bet your company that it worked?
Oracle is expensive and they have a bit of lock-in on their customers' data in their database.
to sit out the Apocalypse in style. Lanai's a little big to keep watch on the entire perimeter, but with enough imported gastarbeiten, he'll manage. Not clear how he and his will avoid the drone-delivered aerosolized MERS and their nastier derivatives.
Given Oracle's management of other acquisitions, I predict Lanai will be underwater (figuratively and literally) well ahead of schedule.
a media blackout, and a contract with whatever Blackwater is calling themselves nowadays, he could do pretty much whatever he fucking likes there and his catches in the political system would whitewash it for him.
Not that it really matters, since within another 25 years they'll all be speaking cantonese after a Chinese LLC buys the island off Ellison anyhow.
Maybe it'll be the retirement home for the current crop of Chinese leadership.
Look at the per transaction fees on debit/credit cards. A banking cartel has figured out how to extract a few percentage points off a large percentage of every sale made in the United States, especially if you are a small business.
Imagine starting a business where you get a cut of sales off of a large percentage of sales in the US. Wow. Just Wow.
I would bet if I suggested a similar scheme in the early 20th century, people would have laughed at me.
Doctors destroy health, lawyers destroy justice, universities destroy knowledge, religion destroys spirituality
Anyone wonder how all of this land came to be for sale ? And, how good his title is?
In the old Hawaiian monarchy set up by Kamehameha, the King owned all of the land. In the "Great Mahele" (division) of 1850, private land ownership was introduced, with 1/3 of the land going to the crown, 1/3 to the commoners, and 1/3 to the chiefs (the "ahupua" land, really a type of shared commons). Due to failure to follow through with paperwork, only about 1% of the "commoners" land was actually allocated to commoners. (I believe that there are only 4 acres on Lanai, out of 40,000 or so, that are actually available for fee simple purchase by the likes of us - that would be the old commoner land.) This old map shows the division into Crown and chief lands after the Mahele. This article describes how Claus Spreckels (a sugar baron) got fee simple for the entire island (minus the 4 acres, and some state land). Of course this was corrupt, but note the corruption appears to have occurred before the 1893 coup d'etat that destroyed the old Hawaiian monarchy and delivered the country over to the USA as a territory.
Does he have good title? I am not a lawyer, this is not legal advice, etc., but my guess would be no, not to all of it. The courts and political system in Hawaii tend to look very favorably to claims from Hawaiian natives about land ownership. There is an entire state bureaucracy, the Department of Hawaii Homelands, dedicated to returning crown lands (and other state lands) to Hawaiians. The DHHL has a land use plan for Lanai, which is full of more facts and maps about Lanai land history and ownership for those who are interested.
Here is my guess how this will proceed. Ellison will develop this and that and eventually do something that will seriously piss off Lanai locals, and then will be enveloped in clouds of lawsuits and political agitation until he sells the land. Having heard stories of the way he runs business meetings, and having had some dealing in Hawaii real estate at the Federal level, I think that predicting a collision is a good bet, and it would be highly unlikely to end favorably for Mr. Ellision.
My experience in business is that decisions to buy Oracle tend to follow exactly the same logic (and are typically done by the same people) as decisions to mandate Microsoft Windows for all desktops.
1. so there was no dotcom burst?
2. when was the first CDO created?
3. when the GOP controlled both houses of congress and the presidency in the early 2000s, why didnt they repeal it then?
4. im not saying clinton wasnt involved, but the guy tried to blame the whole thing on 'communist democrats' which is what they call, "a fucking lie written by a stupid asshole" in the business.
Well, I tend to think people go overboard with the whole private enterprise / government debate ... because corporations have no ethics or morals other than the profit motive - all other things and people are secondary
You just went overboard. Corporations have the ethics and morals of its leadership. Some are both ethical and moral, not purely guided by the profit motive. In my personal experience where I witnessed such leadership the company (a publicly traded company with billions in revenue) was still run by its founders, not by professional management installed by venture capital. I suspect this is a major contributing factor.
And if you notice, a lot of the whining coming from the corporate class is about too much regulation. Not a coincidence.
That is clearly not the case. Have you spent a significant amount of time around small business? Admittedly I don't consider small business owners to be "corporate class", I think my exclusion is fair.
The line between enterprise and government is actually quite blurry. Actually, let me go farther: the line between property ownership and government, or family and government is also blurry.
consider in The Odyssey, when Ulyssees returned home, and judged his wife's serving maids, hanging them all on a single rope for squabbling. Definitely evil government.
Consider the authoritarian role of fatherand mother in a family of four, two of the kids being toddlers: again, a government, hopefully benign.
Ungoverned industry only works for very small groups. More than 3-4, and a workgroup will waste its time without a leader.
Yes, it is obvious that the guy wants to be ruler of Lanai, in some sense or other. But tobe an effective ruler, he's going to need the support of his people, because rulers have only two tools to work with: influence, and coercion. As long as Lanai is American, the amount of coercion he can exert is quite limited. So he's going to have to try to coopt their good will.
Correct Horse Battery Staple: 72 bits of entropy. Enter "Correct H" into google. When it generates the phrase, that's
People keep saying " look at the Monsanto Protection legislation," but pretty much no one actually looks at it.
What they really mean to say is look at this particular proponent's / opponent's spin on the legislation. I have not read the Monsanto legislation, I'm quite open to it being a travesty, but I did read (well much of it, skimmed some) the U.S. Supreme Court's Citizens United decision. Nowhere did it say that corporations are people, that phrase was coined by the opponents of the decision as a wonderfully successful attempt at framing, manufacturing a narrative. What the decision actually said was that groups of people have the same speech rights as an individual person and it does not matter if that group is a corporation, a labor union, an advocacy group, an activist group, etc.
The man is driving that airline into the ground. Look at the yelp reviews. Whatever his intent is it, it is not altruistic and, in my experience, VERY bad buisness.
oracle just cant be beat. its open mindedness when it comes to NSA's "reboot" of the 4th amendment has made all the difference.
you would think google like db approach would be better for that rather than oracle. that was the whole point. either you have really huge or something manageable without oracle and you're better off putting the money towards hw anyways.
world was created 5 seconds before this post as it is.
Whether that factored into Ellison's decision....discuss amongst yourselves.
Never let a lack of data get in the way of a good rant.
and at any rate it was 23 years ago. Not really a "recent" example... I'd also argue that corporations have much tighter control today. They do learn after all. I remember when Pakistan and India had that dust up where a bunch of Pakistanis launched a major terrorist strike. In the 80s that woulda started a war, and we were all expecting it. Except a war would be bad for all the corps using cheap Indian/Pakistani labor...
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As with any monarchy, if the King is a good, thoughtful, and benevolent dictator then the place might do fairly well out of it. If the King is a self-indulgent jackass, you're screwed. Most places have gotten rid of them, you'll note.
Too bad there are young impressionable children that are actually gullible enough to think you are serious and should be taken seriously.
nobody want to support a self-entitled leach.
Can Larry Ellison tell us why? We know it isn't the DNA of the people who live there, because that would be 'racist', so it must be the LAND MASS that makes it a vile third world shithole, right?
... or buying Apple devices.
Ellison must have been a big fan of the game
If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be-T J
It's not going to change all at once. Keep voting for the most viable and most liberal candidate and you'll gradually shift the country away from the current corporate run mess. Obama is one of the most liberal candidate in 20 years. Short of Alan Grayson I don't know anyone else who has a chance in politics and would be a better pick. As for what changed? If the Affordable care act is properly implemented it will change the face of health care. That's important, because right now seniors are single issue voters afraid of losing their lives. Take that fear away and we can start getting them to vote for things like banking reform.
Baby steps. You're up against professionals who's only goal is to bleed you dry if everything. But they lost once (after WWII). For example, Britain told Churchill to talk a long walk off a short pier on the NSA. So if they lost once they can lose again.
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Given that your idiosyncratic definition of "ownership" can, by definition, only ever apply to a sovereign government, it's not a term that is likely to come up for conversation very often. In the meantime, we would need some other term, which could apply to the state we currently call "ownership"
There are two terms: allodial title, which the sovereign government holds, and fee simple, which the private "owner" of land holds. Holders of a fee simple estate in land pay a recurring rent to the sovereign called "property tax".
It sounds like Mr Ellison is on his way in creating his own Jurassic Park. He'll probably use *nix too so the kids can help out.
And I think I know what flavor of *nix his park will use: one named after a Stan Lem novel.
Kamehameha
...douken!
the King owned all of the land
This is still true: commoners who hold a fee simple estate in land think they "own" land, but they're actually renting it from the sovereign government.
I was there a while back. One of the issues on the runways was they were not equipped for jets. You had to bunny hop over to another island for fuel. So this private island will become more private.
This is pretty absurd, the idea that Larry Ellison can own the sixth largest Hawaiian Island.
On the one hand, it means the Hawaiians, on that island at least, have a royal family again.
On the other hand, he holds it due to fictitious numbers in a database, so what this really means is that the United States gave it to him.
The United States will take it back whenever it likes, unless he decides to be a king like Leopold and establish his own military to torment the inhabitants. In which case the United States will take it back after a rather short war.
But I'm sure he'll enjoy pretending to be king for a while.
"MIT betrayed all of its basic principles."
I'm surprised that Lanai went for only $300 million, that is a steal. I would of thought that it would of gone for at least 1 to 2 billion. I figure that just some of the resorts are worth a hundred million or so.
Seems he also got fed up with the online problems of SimCity and decided to go for the next best thing, real life SimCity. :D
Hell, he gets a triple package, Sims, SimCity and Transport Tycoon.
You guys are just jealous.
Although I'm sure there is some truth to your comments, it really is not that simple. Firstly, the days of a supplier swaying a decision through sweetners is pretty much over. I can't say it doesn't still happen but it doesn't happen as much as you might thing. If you look at the database engine alone, then there are some valid and reasonable alternatives to Oracle - IBM DB2, Sybase SQL Server, MS SQL Server, PostgresSQL. Superficially they provide similar functionality. Large organisations quite often use more than one of them. However, anyone who knows much about databases know how substantially different they are. Oracle for example has it's own flavour of the SQL language as well as PL/SQL. Worth mentioning that you can also execute JAVA inside the database as well should you want to. Each of the DBs will have some alternative and it's not so easy to move that code between engines. Clustering is a good way to see the differences between the products. Oracle has something called RAC which attempts (sometimes pretty well) to make a database simultaneously available on several (potentially many) hosts at the same time. DB2 also supports clustering but does so by partitioning the data between different nodes. MS SQL Server supports basic failover clustering. I can't comment on Postgress or Sybase but it's clear that everyone has their own way of doing things. Another area where Oracle differentiates itself is through a number of other features - ASM for storage management, Oracle Application Server for application development and deployment. After all that, there is also products like Exadata.
I'm not suggesting for a moment that Oracle is superior (although it's the DB I know the best), but there are numerous substantial differences that dictate the decision an organisation makes, beyond cost or golf outings. More importantly, you'll find that the reason why a company will stay with a product is because of their investment in that product. It's not easy to lift and drop an application from Oracle into Postgress if you've taken advantage of the features. Making the move from one product to another could take a large organisation a decade to achieve and still find itself with pockets using the 'old' product.
This is insanely awesome.
- Zav - Imagine a Beowulf cluster of insensitive clods...
Smart boy, make it self-sufficient in food and water, tame the natives. With his inside track on when things are finally going to blow all you need is to watch for when moves his private armed troops in to know when you should jump too.
A sane developer would set up a development environment, and replicate the schema and dump production data over a pipe... Once it's confirmed to work, one could partition the data or dump it while replaying transaction logs to keep the data true until the switch is flipped. It really isn't rocket science.