Ellison: The sales staff was compensated based on deal size, not profit. So the commission on a $1 million sale that generated $500,000 in profit was the same as one that cost the company $100,000, he said. "The sales force could care less if they sold things that lost money because the commission was the same in either case," he said.
Meanwhile, I've never encountered an organization with more perverse sales incentives than Oracle had when I used to deal with them, back in the early 90s. Salesman were fired if they missed their sales quota for a single quarter, so we used to get phone calls at the end of each quarter begging us to buy something, anything, and return the item and cancel the invoice after the first of the month. Et cetera.
Are you sure this wasn't simply a sales tactic? Or did you know this sales person personally? I generally don't find sales people to be the most honest and trustworthy individuals.
I'm sure. We went through quite a number of sales-droids; it was rare that someone lasted more than a quarter or two. Like clockwork, toward the end of each quarter, they'd come up with more and more pointless plans to meet their quota. It was sad, really.
You would think that one would follow from the other. In fact you could guess that the very point of threatening to fire someone is to drive them towards tactics that people with a secure job wouldn't countenance.
What's the deal with the article title? "Special Report: Can that guy in Ironman 2 whip IBM in real life?"? Ironically, if not for the little InformationWeek repackaging, I probably wouldn't have read this article at all, because that's a headline I would have just skipped right past.
I quite dislike Ellison (read about his excesses in The Silicon Boys). He's one hell of a pusher, tough, which is what you need in times of distress.
From the article linked from the post:
>In typical Ellison fashion, he took a hands-on approach to the integration, choosing to meet directly with technical managers at Sun as often as four days a week to diagnose its problems, rather than delegating the work to underlings.
Exactly! I've seen some CEO's who don't know the ___location of their R&D Lab better than the janitor closet. This is how it needs to be done. Dictatorships are awful, except when the dictator knows the right direction to go in hard times.
This is a flat lie. I can tell you from firsthand experience that Oracle changed quite a number of things at Sun without understanding what they were or what the ramifications could -- and in fact turned out to -- be. This ranges from buying incompatible kit for servers because they didn't know and didn't ask, to shutting off services and causing all kinds of problems, to rolling software that was in a testing queue to production and wondering why other deployments were held back dealing with the sudden incompatibilities.
Oracle may have some inspiring qualities but good communication, management involvement "in the trenches", and solid corporate infrastructure are not among them.
Ellison is right about one thing in that Sun's sales and marketing completely destroyed many decent products. Their executive team took care of the rest.
Hmm, seems like I was misled by the PR spin (not an uncommon occurrence). I hear you, we are a big company going through a split and we had many stories of our CEO, god bless his soul, doing similar things, e.g. grabbing a list of people and cutting randomly, cutting off crucial teams in the process. And we did have a Sun alumni who totally blew our company with his cool but ineffective sales mumbo-jumbo.
As much as I agree the wrongness of these decisions, I also see that some circumstances present a no-win scenario (Captain Kirk be damned), whatever you do there will be mistakes, but the important thing is to ACT! As far as I can see Ellison at least did that.
I can't get firmware updates for two year old servers because of the Oracle takeover. My company will never purchase an Oracle product, they screw their customers.
Ellison is an arrogant douche but he's absolutely right about Schwartz. Schwartz's high-level corporate strategy, as near as I could determine it, was to try to get people to like him by giving everything his company used to sell away for free and by doing "cool" things like blogging. The problems started before his stewardship, but he greatly accelerated them. Schwartz and his fellow execs should be ashamed at how much money they lost sitting atop one of the world's most valuable repositories of technical talent and intellectual property. An Ellison enema is exactly what Sun needs, or needed. Unfortunately it's about 5 years too late.
Ellison: "The underlying engineering teams are so good, but the direction they got was so astonishingly bad that even they couldn't succeed. Really great blogs do not take the place of great microprocessors. Great blogs do not replace great software. Lots and lots of blogs does not replace lots and lots of sales."
Schwartz declined comment as did Sun co-founder and former Chairman Scott McNealy.
Probable translation: signed a gag clause forbidding any comment on acquirer's management. Expensive money.
... Ellison was known to mock advisers who recommended that he consider acquisitions, saying "we write software, we don't write checks." But he changed gears ....
They're also investing in Linux (pushing btrfs, etc - http://oss.oracle.com ). Smart enough to figure it's shared infrastructure they can leverage profitably.
P.S. Ironically, just noticed the 'Blogs' section in that OSS page, e.g. Virtual Box blog at http://blogs.oracle.com/virtualization/ (Hey, good news: "May 10, Oracle VM VirtualBox 3.1.8 released ... Supporting new platforms such as Ubuntu 10.04 ...")
"Probable translation: signed a gag clause forbidding any comment on acquirer's management. Expensive money."
Or consider that they don't want to have anything to do with the transaction anymore. If someone is trying to throw up all over you, you don't stick around and wait to see if he succeeds.
"His first [hardware] appliance was developed as engineers found that hardware bottlenecks slowed the pace at which computers could process information stored in Oracle's database software."
Are they sure it wasn't the poorly written software?
Is it really easier to design hardware nowadays than to optimize a huge mess of enterprise software?
The Exadata stuff is really good. It's to data processing what a GPU is to graphics. Think compiling SQL and running it on the storage controller. It's not a matter of the database finding the right blocks on the disk any more - the database doesn't even see the blocks that don't match the SELECT.
There's a lot to dislike about Oracle and Larry Ellison (especially as a person) but there's something to be said of a CEO who used the word "permgen" (in reference to HotSpot's generational garbage collector) at the first speech after an acquisition.
Having been at Yahoo at the times of Terry Semel, it's incredibly refreshing to see a CEO of company take a hands-on approach to technology (even if Oracle is primarily a sales rather than engineering company).
It's a bit more subtle than that. Oracle's product range is vast, and there's lots of overlap between products, and sometimes they'll have 3 different products that do the same thing! Why is this? Because Oracle builds stuff then figures out a way to sell it. That's in part why the salesforce is so hypercompetitive - they have to be just to not get drowned (it's also why Oracle has so many consulting types). It's not as free as Google perhaps - but if you can find your niche, it's not a bad company to be an engineer at.
Ellison will definitely make more money than SUN did with its own assets.He is going to put price tag to anything that boots. But SUN represent something much much bigger how many open source projects do oracle supports? none!!!
Meanwhile, I've never encountered an organization with more perverse sales incentives than Oracle had when I used to deal with them, back in the early 90s. Salesman were fired if they missed their sales quota for a single quarter, so we used to get phone calls at the end of each quarter begging us to buy something, anything, and return the item and cancel the invoice after the first of the month. Et cetera.