Oracle's Chairman Defends Spying Operation Against Microsoft as Civic Duty

Strategic Insights -

Lawrence J. Ellison, chairman and founder of Oracle Corporation, defended the company's yearlong spying operation against Microsoft as a necessary act to uncover Microsoft's hidden ties with advocacy groups. Ellison described the operation as a form of investigative reporting, akin to journalists exposing corruption. The spying, which included hiring a detective agency to document ties between Microsoft and three advocacy groups, was revealed after the agency was linked to a failed attempt to buy the trash of a Microsoft ally. The operation was justified by Ellison as a response to Microsoft's own business practices, which led a federal judge to rule that the company should be broken in two.

Key Takeaways:

  • Oracle's chairman, Lawrence J. Ellison, defended the company's yearlong spying operation against Microsoft as a civic duty and a form of investigative reporting.
  • The spying operation involved hiring a detective agency to document ties between Microsoft and three advocacy groups, including the Association for Competitive Technology, the Independent Institute, and the National Taxpayers Union.
  • Ellison claimed that Microsoft's own business practices justified the spying operation, citing the company's financial support for the advocacy groups.
  • Oracle's chief marketing executive, Gary L. Bloom, said that the company's software offers a complete line of products for Web-based computing, countering Microsoft's strategy.
  • Ellison showed dislike for Microsoft executives, particularly William H. Gates and Steven A. Ballmer, calling them "special" for being the only ones Oracle felt the need to investigate.

Statistics:

  • Oracle's CEO, Larry Ellison, has a wealth that approaches that of William H. Gates, the chairman of Microsoft.
  • 55: the age of Larry Ellison, the CEO of Oracle.
  • 2: the number of advocacy groups targeted by Oracle's spying operation, the Association for Competitive Technology, and the National Taxpayers Union.
  • 1: one of the groups backing Microsoft in the antitrust case, the Independent Institute, was also targeted by Oracle's investigation.
  • $1 billion: Oracle's annual marketing budget for the Internet software business.
  • 80%: the percentage of Oracle's software used in large enterprise computing environments.
  • 10 years: the estimated time it will take for Microsoft's .NET strategy to reach the marketplace.

Sources:

  • The New York Times
  • The Wall Street Journal
  • Investigative Group International (IGI), the detective agency hired by Oracle for the spying operation
  • Oracle Corporation (acuslockman, "The Oracle Mix")
  • Microsoft Corporation (acuslockman, "The Microsoft Mix")