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Recurring Revenue: Article

Larry Appalled at HP’s New Taste in CEOs

Ellison’s not alone in his disregard

In an e-mail, Oracle CEO Larry Ellison told the Wall Street Journal that he was "speechless" that HP hired ousted SAP CEO Léo Apotheker to replace Mark Hurd, the ex-HP CEO he hired.

"HP had several good internal candidates," he told the paper, "but instead they pick a guy who was recently fired because he did such a bad job of running SAP."

In his opinion, "The HP board needs to resign en masse...right away. The madness must stop."

Ellison's not alone in his disregard. HP's stock continued to slide on Monday, the second trading day after the HP announcement.

Ellison also connected Apotheker to SAP's theft of Oracle IP via its 2005 TomorrowNow third-party maintenance acquisition.

He e-mailed the Financial Times over the weekend saying, "SAP has already publicly confessed and accepted financial responsibility for systematically stealing Oracle's intellectual property over a long period of time. Much of this industrial espionage and intellectual property theft occurred while Léo was CEO of SAP. The HP board must have been aware of these facts, yet they appointed Léo CEO of HP anyway. What happened to ‘The HP Way'?"

Oracle sued SAP in 2007; SAP admitted its now defunct subsidiary made unauthorized copies of Oracle software, but contends the pilfering was only worth in the tens of millions, not the billion dollars Oracle wants.

The case goes to trial next month and Apotheker may be called as a witness. Oracle says the thefts continued until October 2008, six months after he was named co-CEO of SAP.

The FT says the court documents indicate SAP was warned Oracle might sue before it bought TomorrowNow, a purchase it made after Oracle bought PeopleSoft. It meant to leech the service revenues Oracle collected and persuade users to abandon Oracle for SAP.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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