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Best Practices


Irony: Did Oracle Help Leo Apotheker Win HP’s CEO Post?

  • Written by The VAR Guy 1
  • October 1, 2010
Now that Hewlett-Packard has named its next CEO, The VAR Guy has to wonder: In an ironic twist of fate, did the recent Oracle-HP feud play a role in Hewlett-Packard's decision to hire former SAP executive Leo Apotheker as the new HP CEO? Hmmm... Here's the speculation.

Let's consider two scenarios:

Now that Hewlett-Packard has named its next CEO, The VAR Guy has to wonder: In an ironic twist of fate, did the recent Oracle-HP feud play a role in Hewlett-Packard’s decision to hire former SAP executive Leo Apotheker as the new HP CEO? Hmmm… Here’s the speculation.

Let’s consider two scenarios:

  • Scenario A, Fiction: Former HP CEO Mark Hurd resigns from the company in August but never goes on to join Oracle. Instead, he becomes a consultant or venture capitalist.
  • Scenario B, Reality: Former HP CEO Mark Hurd resigns from the company in August and joins Oracle as co-president in September 2010.

New World Order

In Scenario A, The VAR Guy suspects HP would have taken a broader view of the world. Would the company have gone after an innovator (say, Apple’s Tim Cook), a total enterprise veteran (for instance, an IBM veteran) or an M&A guru (for instance, a Cisco lieutenant)? Hmmm… It’s difficult to say how this fictional scenario would have played out.

Meanwhile, Scenario B is our true reality: Hurd joined Oracle in September 2010, triggering a brief but very public feud between Oracle and HP. This is pure speculation, but The VAR Guy suspects the spat influenced HP’s board, and their criteria for a new HP CEO.

At a time when software+services+hardware is the new world order, who could HP hire as CEO to compete most effectively against Larry Ellison? The obvious answer: Former SAP CEO Leo Apotheker, who has spent most of his career battling Ellison and Oracle.

Of course, The VAR Guy needs to show Apotheker proper respect. Apotheker’s resume and track record suggest that he’s a very capable, seasoned business executive. But The VAR Guy will forever wonder: If the Oracle-HP feud had never started, would Apotheker have won the HP CEO spot?

Sign up for The VAR Guy’s Weekly Newsletter; Webcasts and Resource Center; and via RSS; Facebook;   Identi.ca; Twitter and VARtweet.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Best Practices

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3 comments

  1. Avatar Steve Bell October 6, 2010 @ 3:50 am
    Reply

    VAR Guy, i know you have to be subtle, and to not offend anyone (God forbid… HP). So allow me to think out loud about this?

    What in the world, is HP – a hardware company – doing hiring a failed ex-executive from a European enterprise software (DATABASE) company??

    OK, i know what you’re thinking. It’s because they want to move into enterprise software. Give me a break. HP sells computers, printers, and workstations. And… the big money-maker: INK for those licensed print engines.

    Does HP have plans to enter the fray, competing as a software vendor with ORCL and SAP? Doubtful.

    OK, i know you think you have me now. HP competes with ORCL directly, now that ORCL owns SUN. But VG… that’s HARDWARE. What does this new hire know about the hardware business?

    The whole thing, makes no sense to me. And… what’s up with the “retiree timeline”…. starting November 1st? Gheesh.

  2. Avatar The VAR Guy October 6, 2010 @ 10:46 am
    Reply

    Steve: The VAR Guy makes a living sharing informed opinions… and sometimes those opinions rub readers the wrong way.

    Our resident blogger is keeping an open mind re: HP’s CEO pick. But don’t forget, The VAR Guy was one of the first bloggers to notice Wall Street’s initial negative reaction to the CEO choice.

    And yes, you’ve raised some key questions about a career software executive’s ability to lead an integrated IT giant. Apotheker is going to need plenty of executive support from HP’s executive VP team…
    -TVG

  3. Avatar Steve Bell October 6, 2010 @ 6:14 pm
    Reply

    I’ll keep an open mind too, TVG! This is going to be a fund one to watch play out.

    The most surprising thing to me all along, has been the HP board’s actions – from the absurd firing of Hurd, to this choice for a CEO.

    They had they put out the fire they started by filing their nasty lawsuit against ORCL/Hurd… then they turn around and hire an SAP guy to run HP. And they aren’t even in the business. What in the world would motivate this choice… that’s the puzzle.

    The easy answer: misguided corporate ego, which has resulted in a string of terrible decisions. But maybe there is more to the choice than meets the eye. So I’ll keep an open mind, too… but so far, the only comments and actions in this serial corporate disaster-drama that make sense for me, are those that have come from Larry Ellison.

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