Subject: Re: Larry Ellison on FSBs
From: "Stephen J. Turnbull" <turnbull@sk.tsukuba.ac.jp>
Date: Tue, 25 Apr 2006 14:31:38 +0900

>>>>> "Ben" == Ben Tilly <btilly@gmail.com> writes:

    Ben> Um, a decade ago the phrase "open source" had not yet been
    Ben> coined. And it was far from obvious that open source
    Ben> databases were going to become important.

I don't see that that makes a bit of difference.  Entrepreneurial
business is not about knowing *who* is trying to get you, it's about
knowing "they" are trying to get you, and staying one step ahead of
"them".  Open source may not have been what anybody expected, but that
doesn't mean that Oracle and Microsoft aren't going to be the best in
the business at dealing with it.

In the interview, did LE brag that his database was the best?  Did he
claim that RHEL was buggy?  He did not.  He said, Oracle makes money
because we deliver services to our customers, and they're willing to
commit to long-term contracts for it.  He said, RHAT is struggling
because they haven't learned to deliver the services.  He said, we
have a five-year plan to grow the profits we make at 20%/year, and two
years in, we're on track.

KISS for the new millenium: "Keep Investing in Service, Stupid."  The
software business is not about software.  It's about business---your
customers' business, and how you support that.

LE could be wrong, but he sure makes a lot of sense.

    Ben> Furthermore new businesses or not, it still hurts Oracle to
    Ben> see their cash cow evaporate.

Companies like Oracle don't drink milk, they eat steak.  Unexpected
visitors?  Kill the fatted calf and have your barbeque a week early.


-- 
Graduate School of Systems and Information Engineering   University of Tsukuba
http://turnbull.sk.tsukuba.ac.jp/        Tennodai 1-1-1 Tsukuba 305-8573 JAPAN
        Economics of Information Communication and Computation Systems
          Experimental Economics, Microeconomic Theory, Game Theory