In a particularly insightful article that could only have been written by someone who has been watching the enterprise IT industry for a long career, Judith Hurwitz raises a red flag about Oracle’s new acquisition strategy. It appears Larry Ellison himself has now clearly articulated a plan that involves buying “companies with a narrow profit margin that have attractive maintenance revenue.” Ms. Hurwitz astutely points out that this type of strategy, coupled with neglecting cash cows, is exactly how Computer Associates faded to irrelevance at the same time that they saddled themselves with several thousand software products to maintain.
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