He's the samurai warrior of Silicon Valley. Larry's attitude is, if you want to compete against me, then you'd be prepared to be crushed. Larry Ellison started Oracle Software over 30 years ago, and it has made him the highest paid executive over the last decade, with a total compensation of $1.84 billion.
他是硅谷的武士战士。 Larry的态度是,如果你想与我竞争,那你就要做好被击败的准备。 Larry Ellison在30多年前创办了Oracle软件,并且在过去十年中成为薪酬最高的高管,总薪酬达到18.4亿美元。
There was nobody better than Larry at making him customer and believe that he could change that person's business life with his product. He sees around the corner well before many of us get to the end of the street. He'll do whatever it takes to win in the office.
SAP, the German software firm, was ordered to pay Oracle $1.3 billion or on the ocean. There is absolutely no doubt that he hates to lose. His company's technology has become the backbone of the world's information systems, from government to online commerce. The brazen billionaire is an ambitious provocateur with a singular management style.
I have a theory that Larry's succession plan for Oracle is he is trying to figure out a way that when he's six feet under in a grave, he can still run Oracle. I have a question. If you know anything about Oracle's Larry Ellison, it probably goes something like this. I've got a Bugatti, the fastest car in the world. This home costs $200 million. The fastest sailboat that's ever been built. I'm addicted to winning. The more you win, the more you want to win. He's a high-flying adrenaline junkie and an unapologetic collector of expensive toys and real estate.
It's not really a big smile. I got bored. He spent $400 million to bring the 2010 America's Cup, the oldest active trophy in sports, back to America for the first time in 15 years. But his success comes from something far less flashy. Some of the world's most essential software, tools you use every day, but probably don't realize that it's his company making them work. Almost everybody in the world uses Oracle. They just don't know it. If you do any kind of government transaction with almost any government in the world, any business transaction with almost any internet business in the world or any traditional business if you have a credit card, if you have a cell phone, if you have any of the modern things in life, if you live today, I think you probably use Oracle.
Larry Ellison arguably created the most important computer software you've ever heard of. He was the man behind the curtain for a tremendous change in the way we all live. Ellison remained behind that curtain when we tried to reach him to participate in this program.
Born in the Bronx in 1944, Ellison grew up in Chicago. When he was 12, his father bluntly gave him some surprising news. My dad just said, right before dinner, oh, by the way, you were adopted and we're having meatloaf tonight. It was so shocking, I just put it away and thought about it for years without really confronting all and realizing all of the implications.
He dropped out of college twice. Ellison was a mediocre student and disliked formal education. Mike Wilson is an editor for the St. Petersburg Times and interviewed Ellison extensively for his biography. Larry was not interested in following the rules at school, in the family, or anywhere else. Larry needed to get out from underneath the shadow of Lewis Ellison and prove to his father that he could make something of himself.
His flair for the fast lane was obvious early. Larry went out and bought himself a turquoise blue thunderbird. He was a stylish guy. He wanted to impress people. He got in that car and he drove it to California. Larry Ellison was a young man with a great deal of potential. His trip to California was critical to who he would become. Ellison settled in Berkeley and set out to make a living writing code.
In 1973, he worked at the computer electronics maker, Amdau. There, he met Stuart Fagan. They've remained friends for over 35 years. I went into my cubicle the first day I worked there and across the hall were a couple of guys who never seemed to do any work. They just talked all the time. And one of them did nothing but talk about himself, how smart he was, how stupid everyone else was, and how he really ought to be running everything. And that was Larry Ellison.
Ellison was a talented but impatient programmer, desperate to find something of his own to control. To say he, he had the attention span of a tumbleweed is to overestimate it. I would say more of the attention span of a lightning bolt. But his attention focused when he landed a job at a company called Ampex. Ampex was struggling with a project funded by, of all places, the information-driven CIA. The project was codenamed Oracle. The CIA needed a system to store and retrieve vast amounts of foreign intelligence, concerned with its various sensitive operations and missions.
For Ellison, it was the job of a lifetime. And would plant the seeds for his future. In the 1970s, information storage meant putting data on real-to-real tape, which was just too slow and inconsistent for the CIA, and too slow for Ellison. He left Ampex and later started his own company with his friend and programming genius, Bob Miner.
Bob and Larry were a perfect odd couple for Silicon Valley. Bob had all of the engineering smarts, the technical ability Larry, on the other hand, had the sales ability, the visionary ability, the ability to go to a customer and explain, here's how your business can change. With this original handwritten sign and $1,200, they started Software Development Laboratories, or SDL. Ellison recruited friends at Oates and Stuart Fagan to help program. He did want me to join him, and he's going to start some kind of company. And I thought that was the stupid idea I'd ever heard of. Larry wasn't famous for finishing things. I used to say he's a total flake and he'll never amount to anything, and I was half right.
鲍勃和拉里是硅谷完美的搭档。鲍勃拥有工程智慧、技术能力,而拉里则拥有销售能力、远见能力以及向客户解释商业变革的能力。带着这张原始手写的标牌和1,200美元,他们创办了软件开发实验室(Software Development Laboratories,简称SDL)。埃里森召集了他的朋友Oates和Stuart Fagan来帮助进行编程。他确实想让我加入他,而且他要创办某种类型的公司。而我当时认为这是最愚蠢的主意。拉里并不以完成事情而出名。以前我经常说他是一个完全不靠谱,永远不会有所作为的人,而这其中有一半是对的。
Ellison's new company needed a product. And after reading an obscure IBM research paper, he thought he had it. A method of sorting information that was vastly superior to anything that had come before. It was called a relational database. According to Gary Bloom, who worked with Ellison for 14 years, it was a complex name, but a simple idea. The relational database, you know, what is it? It's a collection of data and information that's very simply put into a format that makes it very easy to search and find that information. It's nothing more complicated than that. IBM didn't see the potential of what they had. Ellison did. I said, oh, my God, we can beat IBM to markets because IBM doesn't believe in their own idea. Ellison believed and asked programmer Bruce Scott to start writing code. For me, it's just cool technology and kind of fun, but for Larry, you know, he saw a company out of it and he saw a market out of it.
We weren't sure Larry was right, but we needed the jobs, and it was a struggle all the time. Larry was under a lot of pressure to get some money and somehow. In 1977, at age 34, Larry Ellison's startup software company was busy creating a smart database they thought would revolutionize how companies retrieve, manage, and analyze data. Three rooms and a little lobby area. There were four of us who were writing programs. Larry was mostly involved in finding customers, and that was a bizarre idea because we had no software. All the things that you would read in books of somebody being a leader, he wasn't, but he was tenacious, he would never give up on anything.
Ellison chased and cajoled customers, becoming the company's chief evangelist. There was nobody better than Larry at making a business person, making a customer believe that he could change that person's business life with his product. Knowing they still needed a smarter solution for the monumental task of managing worldwide intelligence, Ellison sold his database to the CIA, his first customer. He called the new software Oracle Version 2. There was no Version 1 because everyone thought, well, no one buys Version 1, it's buggy, so we started with Version 2. Our Version 2 was at least as buggy as anyone's Version 1, and I'd describe those early versions as the roach motel of databases, the data went in, but it didn't come out. In 1982, Ellison also took the name Oracle for his company.
He targeted government agencies and major corporations in his own unique way. I remember him telling me very distinctly one time, Bruce, we can't be successful unless we lie to customers. For some reason, Larry told us the Bank of America, I think he told us there were 15 of us, when in fact there were five of us. I'm not sure why the Bank of America would think differently of you if you were five or fifteen, but Larry had given him a number which was a little larger than reality. Ellison also, with sharpening a sales philosophy, rooted in a trip he had taken to Japan in the early 1970s. I was in Japan and I was talking to a Japanese business executive, and he told me, you know, the problem with America is that we just have no stomach for competition. In Japan, we believe our competitors are stealing the rice out of the mouths of our children. In Japan, we think anything less than 100% market share is not enough.
His take-no-prisoners approach became known as the Oracle Way. The Oracle Way in the early to mid-80s was just to win, almost by any means necessary. Larry's attitude is if you want to compete against me, then you better be prepared to be crushed, or don't compete against me.
His product, the Oracle Database, took off like a jet fighter in one of his ads, and in 1986, Oracle went public. His 39% stake in the company was worth a stunning $93 million. The IPO was a huge hit, but was overshadowed the very next day by Microsoft's public offering, which made Bill Gates' stake worth a whopping $350 million.
In 1989, Ellison moved Oracle to this mammoth campus in Redwood Shores, California, which became known as the Emerald City, a reference to the Wizard of Oz, or as one newspaper described it, Larry Land, and everyone knew who was the wizard. When I ordered a Ferrari 348, and I was going to get the first 348 in California, Larry ordered one from somewhere on the East Coast and got it shipped in before I got mine. He didn't want to be the second one. He wanted to be the first one. His obsession to be first took its toll.
Oracle hit a wall. These aggressive sales practices started to cause serious problems. Oracle's aggressive sales practices in the 80s turned the company into an accountant's nightmare. The Salesforce was so aggressive, so willing to close a deal, and there were so few business controls over the makeup of those deals, then we started having the problem of we certainly signed some bad contracts. They were also selling products that hadn't yet been created. Oracle was selling a lot of futures, so you were taking a lot of money and a lot of revenue in for future deliverables. Well then a question comes when you finally have those deliverables, now who do you sell them to? You already sold it to everybody. You sold it to them three years before you had it. It didn't help the company's prospects that their latest product was a dud. Oracle version 6 was riddled with bugs. Customers were frustrated and sales plummeted. It sometimes characterized as the near-death experience of Oracle in the early 90s, and it was. We weren't cutting fat. We were cutting in the muscle, and you might even say we were in a couple of cases, we were cutting a couple limbs off.
With Oracle's stock price in free fall, so was Ellison's personal fortune. By November 1st, 1990, he had lost $790 million. His company was nearly a billion-dollar operation, and it was failing. Larry was trying to achieve this greatness. He was building towards that all the time, and now he was in a sense of laughingstock. It was devastating for him. We were all bunch of kids that grew up with the business, and we weren't kids anymore, and the business wasn't a little business anymore. It was a big business, and we had to replace virtually all of senior management, and it was a very painful process. He convinced well-known management and sales consultant Ray Lane to join the company. And what he brought was what I'd characterize as operational discipline, and a maturity around this is how a big business runs. It was chaotic, it was painful. Nobody wanted to go through that again, and so the culture was kind of reset.
But the company's real savior came in the form of a new product. Zach Nelson was Oracle's youngest marketing executive. Oracle 7 was a spectacular product. The future was incredibly bright, and I think everybody within the industry has been a great deal. And I think everybody within Oracle at that time certainly knew it and could sense it. It wasn't just incrementally better. It was orders of magnitude better. Ellison's company had dodged its near-death experience. In 1994, Oracle revenues passed the $2 billion mark, and his stock as a result was worth nearly $3 billion.
For Ellison, that wasn't nearly enough. To become software's sole heavyweight, Ellison knew he had to pick a fight with the reigning champion, Bill Gates. He seemed to be personally disappointed he wasn't wealthier than Bill Gates. It's the scorecard. And if you weren't number one, if you weren't richest, you weren't on the top, you weren't the best. It was the scorecard, and he was losing. I think that Larry thought he was in a tremendous competition with Bill Gates, and maybe Gates didn't think so so much. Larry wanted to be recognized as the greatest innovator, salesman, evangelist in the world of software. And he had a steep battle going up against the guy who would put his software in every single personal computer practically in the world. Ellison was fixated on Gates. He would later admit publicly to hiring private detectives to dig up dirt on him.
Gates' new product, Windows 95, had the entire tech world buzzing, including Ellison himself, and this appearance on the Charlie Rose Show. This Windows 95 is an enormously complicated piece of software. And the idea of people are going to install this in their households and manage these things, their household, to me, is hilarious. And it's time for something that's easier to use. Well, this is clearly part of our strategy to throw in Microsoft. But the way to throw in Microsoft is not somebody that, you know, throw darts at Bill Gates and hate and envy Bill Gates. You have to think about products and create products that are better than their products that Microsoft is selling.
Ellison made a move into the consumer device market. He called it the Network Computer, or NC. He launched the Network Computer with great fanfare. The computers we currently make, personal computers, are rather expensive and very, very complex. So we've introduced this new class of computers for normal human beings. It's very low cost, very low weight. Now every person can use a computer because they're low cost and very easy to use. You can surf the net, you can do email on, and he said, and it's going to be $500. It's kind of an internet appliance, so to speak, no different than your toaster. I can remember having a discussion with him saying, you know, the internet makes it possible to imagine a world without Microsoft's operating system on every desktop. And that was really, you know, the birth of the NC.
Ellison went on a campaign to promote the power of his new baby on the web, while mocking the popular PC. I hate the PC with a passion. Put the stuff on the net. It's bits. Don't put bits in cardboard, cardboard in trucks, trucks to stores. Me, you know, me go to the store, you know, pick the stuff out. It's insane. I love the internet. But falling PC prices meant the NC was destined to fail. I don't think there was anything wrong with the idea. I actually just think it was premature. Five years later, it would have won the world, and the only difference is all the PC manufacturers, Dell, HP, everybody else, Gateway, what did they do? They created a $500 PC that surfs the web really well, and it does email really well. And that shut down Ellison's venture into the consumer market.
His NC was too far ahead of its time, but his vision of the internet was still right on target. Oracle's database became the underpinnings of all of these internet services that we take for granted today. It was Expedia, Amazon, eBay, go down the list of applications. All of those are storing all that information, previewing that information, delivering that information, doing those transactions through the Oracle database. People thought Larry was crazy. Now he's a genius. And it solved the biggest IT problem in history.
By 2000, Larry Ellison's company Oracle was among the elite tech companies in the world. But internal struggles would soon force out the company's president and chief operating officer, Ray Lane, who had risen to second in command and heir apparent. He described the culture at the company he left. It wasn't good enough for a salesman to make their quota. They had to make 200% of their quota. It was the top 10% get rewarded millions, and everybody else falls by the webs. They're weak soldiers. Shoot them. A departing lane said he didn't fit into Oracle's system, and that the only person making decisions at Oracle is Larry. Lots of people that transitioned in and out of Oracle got confused who was in charge, and that's a pretty volatile. That's like a galactic collision. Yeah, we're two stars hit, and it's a pretty violent explosion.
Oracle, the company, was on a roll, but was lagging behind in one key area. We're still fighting to be relevant in the applications world. We're the number two application provider in the world, and we're number two in ERP behind SAP. Boy, this number two is getting old. We're number two in CRM behind Sibel, but we're growing faster than SAP. And we're growing faster than Sibel, and we're determined to become number one in applications that's like we're number one in database.
To get to number one, Ellison needed to do something his company had long avoided, buying new technology through acquisitions. When he came to that conclusion, he opened his wallet and bet far bigger than anyone else did. In fact, he did it far faster than anyone else did. Ellison wanted to bundle new application software with Oracle's successful product line. In 2003, he targeted the company PeopleSoft in a hostile takeover attempt. The Department of Justice sued Oracle on antitrust grounds, charging the takeover would empower the company to illegally raise rates and impair innovation. After a year and a half long battle, the courts sided with Oracle. Ellison finally acquired PeopleSoft for $10.3 billion. It's very rare that someone gets sued by the government, and they actually win. You know, I mean, it's just another testament to this guy's tenacity. Most guys would have maybe walked away from that. Instead, Ellison stepped it up.
Over the next five years, he would spend close to $34 billion, acquiring 52 companies. Heather Bellini is Senior Managing Director of the Technology Research Team at International Strategy and Investment Group. She has covered Oracle since 2003. He started looking out and seeing how the landscape was changing and how the carnage that was done to some of his competitors was going to give him an opportunity to go make some acquisitions and buy some technology where he was behind. And he really was the one that started the whole M&A trend within the technology industry.
在接下来的五年里,他将花费近340亿美元收购52家公司。希瑟·贝利尼(Heather Bellini)是国际战略与投资集团(International Strategy and Investment Group)的科技研究团队的高级董事总经理。自2003年以来,她一直关注甲骨文公司(Oracle)。他开始观察并了解行业的变化,以及竞争对手所遭受的惨痛教训将为他提供一些机会,通过收购和购买一些他落后的技术。他确实是启动科技行业整个并购潮的人。
Ellison's appetite for acquisitions accelerated in 2009 with his $7.4 billion trophy purchase of the prominent hardware company Sun Microsystems. But in 2010, his eyes were on another trophy, a decade-long $400 million obsession. BMW Oracle Racing was launched in 2000 for Ellison's run at the Americas Cup. It may be the oldest active prize in international sport, but what Ellison created was entirely new. The boat is a trimaran. It often appears to be nearly flying with only one of its three holes actually in contact with the water. The oceans have never seen anything like it.
There is absolutely no doubt that he hates to lose. There is no doubt about it all. Grant Dalton has competed against Ellison on the Americas Cup circuit. My recollection in racing against him and we will race against him in the future is this is a man that's very determined to work. On Valentine's Day 2010, Ellison brought the Americas Cup back to the United States for the first time in 15 years. He celebrated with his now ex-wife, romance novelist Melanie Kraft. It was his fourth marriage.
The old samurai warrior re-emerged when his friend Mark Hurd resigned as CEO at Hewlett Packard amid allegations of sexual harassment and expense account irregularities. Ellison was outraged. He attacked the HP Board of Directors. He sent a quote to HP Board just made the worst personnel decision since the idiots on the Apple Board fired Steve Jobs many years ago. Exactly one month later, Ellison stunned the business world when he turned around and hired the ousted executive.
The Silicon Valley soap opera continued when HP named Leo Appetaker as its chief executive. His former company SAP is Oracle's biggest rival in business software. SAP and Oracle had been locked in a nasty three-year copyright infringement case that ended in November 2010. SAP, the German software firm, was ordered to pay Oracle $1.3 billion. It was the biggest settlement ever for software piracy. Larry Ellison's brawl had drawn new blood on the information technology battlefield. And as always, he is more determined than ever to win.
Larry Ellison is pretty similar to the New York Yankees. They're the team you love to hate. And as a competitor to Larry Ellison, I'm sure he's the person that people love to hate just given how successful he's been. Well, most visionaries you think are sort of just talking off their hat and saying, oh, this is how the world can be. You know, Larry sees how the world can be, and then he actually tries to make it that. He started with a $1,200 stake in a little company, and by sheer force of will and persuasion, he built it into one of the giant software companies of the world.