Perhaps Oracle is feeling a little spunky ever since it acquired Sun Microsystems after a lengthy approval process with the European Union. Or maybe somewhere along the line, rival SAP hit a nerve, Whatever the reason, Oracle Chief Executive Larry Ellison had plenty to say about SAP during a recent conference call, and not much of it was positive.
"They have lost their way," Ellsion said, noting how hard it is to make money selling to SMBs. "If they don't want to be No. 1, we sure do."
There might some truth to his statement, as SAP's revenues in 2009 fell 8 percent while earnings per share tumbled 13 percent. But what likely has Ellison going on the verbal offensive is SAP's recent statements that it plans to acquire more companies, a strategy it's been following for the past five years. Ellison has criticized this strategy before, and he's not the only one doing so now.
"Many investors believe that SAP's strategy left the company with very little in terms of new products to leverage its strong installed base and was not quick to enter the SMB and on-demand markets, said Yun Kim, an analyst with Broadpoint AmTech.
Oracle has been the recipient of recent criticisms as well, most recently for being slow to launch its Fusion software. "I'd much rather be late than deliver a bad product," Ellison said.