Larry Ellison has been the CEO of Oracle since it was founded in 1977.
Yes it is true; the day has finally come when Larry Ellison, the founder and CEO of the world’s largest software company Oracle, has officially stepped down as CEO. Ellison has been holding this position since the company started back in 1977, and he played the most critical role in turning Oracle into what it has become today: a software giant that has annual sales of $38 billion. The biggest question being asked since this move occurred is whether or not Oracle will become the next IBM, a company who also had a change in their CEO and almost went out of business as a result of it.
Early results are saying this might in fact happen, as Oracle’s stock had already dropped 2.5% in after hour trading when the news of Ellison dropping as CEO had come out. However, with that being said, this move, in my opinion, will actually benefit Oracle in the long run, and here’s why.
Ellison will still be a part of the executive team, as he will focus strictly on the technological department of the company, and now the old CEO title is split into two Co-CEOs: Mark Hurd and Safra Cratz. This is a great breath of fresh air since Oracle’s business model is extremely outdated, as they still use the tactic of a pushy sales team to make businesses pay large license fees as well as high maintenance charges for their products. This makes customers pay more and enables their rivals like MongoDB to come in and steal some customers and sales. With new co-CEOs, Oracle is extremely likely to change their business model, and as a result, they will most likely fix these issues, making a stronger business model and therefore, a stronger company.
Although nothing is certain as of right now, a change of management for a company that could improve its business model can only lead to better things in the future, but only time will tell.
Works Cited:
“Transition, Not Succession.” The Economist. The Economist Newspaper, 25 Sept. 2014. Web. 26 Sept. 2014. <http://www.economist.com/news/business/21620196-larry-ellisons-job-swap-only-start-big- transition-firm-he-founded-transition>.
Wilhelm, Alex. “Oracle Stock Drops 2.5% On News That Larry Ellison Has Relinquished His CEO Title | TechCrunch.” TechCrunch. N.p., 18 Sept. 2014. Web. 26 Sept. 2014. <http://techcrunch.com/2014/09/18/oracle-stock-drops-2-5-on-news-that-larry-ellison-has- relinquished-his-ceo-title/>.