HP vs Oracle Round 3

Round 1: August 6th 2010 - HP Fires Mark Hurd for fiscal improprieties. Larry Ellison calls this "the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago."

Round 2: September 6th 2010 - Oracle hires ousted HP Chief Mark Hurd. HP responds with a law suit that "in the course of his duties with Oracle, Hurd will inevitably disclose HP's trade secrets and confidential information."

Round 3. October 1st 2010 - The Silicon Valley Soap Opera took another bizarre turn with the appointment of Leo Apotheker as the new HP CEO. Larry Ellison says publicly that he is "speechless" that HP "picked a guy who was recently fired because he did such a bad job running SAP."

Will somebody please stand up and tell Larry Ellison that *he* hired a guy who was recently fired from HP because he did not stand up to HP's ethical standards (which are also the standards normally practiced by the rest of us). Who is "speechless" now?

HP really hit it where it hurds the most (sorry, could not resist that!) with the appointment of Ray Lane as the non-executive chairman. Ray Lane has a storied history with Larry Ellison. It will be interesting to see who makes the next move.

I was disappointed with Chris O'Brien's piece in the Mercury News earlier today. He starts off very well building the case for why the other stories (Apple vs Adobe and Google vs Apple) pale in comparison to this one. It was his conclusion on "How can this get better?" that was disappointing. Chris O'Brien opted to take the trite path to possible conclusions.

I think the battlefield is now the marketplace. HP and Oracle are going after the same customers in the Enterprise Data Center. Oracle had the upper hand with Enterprise Software. HP closed that gap with the hiring of Leo Apotheker. With HP's recent acquisitions of 3Par, ArcSight and Fortify they are filling critical holes. I believe that they have the right person at the helm to lead them. I applaud HPs Board in having the courage to hire a rank outsider to help them effectively combat Oracle - an advantage that an insider would not have given them.

We are nearing the end of the first quarter and, by my score, HP is leading by a field goal - with each team having scored a touchdown. We have three more quarters left in the game. The Bay Area is already abuzz with all the activity that has happened so far. Hold on to your seat belts folks. The game has just begun!

Wow!

[Full Disclosure: I own HPQ stock. The following blog post, however, is not written from a shareholder perspective. These opinions, as the others in my blog, are solely my own]

I mean WOW! In my blogging past, I have heaped praise on two CEO's:

1. Ramalinga Raju and
2. Mark Hurd

Ramalinga Raju is currently in Hyderabad's Chanchalguda jail and Mark Hurd has been unceremoniously dismissed as the CEO of HP. I wonder what drives these (and other) talented individuals to such grave deeds of misconduct (I provide an POV later in this posting)

Sexual misconduct/ethical lapses and Corporate world are certainly not strangers. Recently, IBM's Robert Moffat resigned on an insider-trading charge after "becoming intimate" with tipster Danielle Chiesi. I agree with Chris O'Brien that the circumstances of Hurd's dismissal are mysterious - especially with the comment that Hurd would keep $20,000 in his shoe :) However, I disagree with Chris in wondering if Hurd had to go. Curiously, it was the same Hurd that spoke not too long ago of the ethical challenges that he faces in running a large, global company :) If there is one thing I admired about the leadership at Sun it was the high moral ground maintained by its executives (Sun won the award for the World's Most Ethical Company). They may have been recognized as the worst leaders in American History (for the record, I do not share that opinion), but they did their jobs ethically :)

Given the increased scrutiny in a post Enron world, you wonder what were Hurd, Moffat, et al thinking? We are not talking about minor reckless driving incidents before they became the CEO of large corporations. We are also not talking about improprieties by sports figures. After all, the only one affected in this case is their family (not that it condones the despicable and dastardly behavior!).

There is a certain responsibility that comes with running the world's largest computer company - to the 300,000+ employees and shareholders. Words used by Tiger Woods in his apology come to mind, "I convinced myself that normal rules didn't apply. I never thought about who I was hurting. Instead, I thought only about myself. I thought I could get away with whatever I wanted to". History is replete with examples of moral hypocrisy from absolute power.

Lord Acton's dictum of "absolute power corrupting absolutely" has been proven time and time again ...