Ellison to HP: If it's a Rumble You Want, No Problem

By: Charles Cooper
Topics: In The News ,; Tech Talk

It's been only a day since Oracle announced it was hiring HP's former chief executive Mark Hurd and the relationship - if you can call it that - between the two companies has rapidly deteriorated to the point where it now resembles a corporate Cold War.

Oracle CEO Larry Ellison,

(Credit: AP Photo)

Hours after HP filed a civil lawsuit against Hurd to stop him from joining Oracle as co-president, Oracle CEO Larry Ellison sharply rebuked HP's management and suggested the lawsuit could rupture ties between the companies.

"Oracle has long viewed HP as an important partner. By filing this vindictive lawsuit against Oracle and Mark Hurd, the HP board is acting with utter disregard for that partnership, our joint customers, and their own shareholders and employees," Ellison said in a statement released late Tuesday. "The HP Board is making it virtually impossible for Oracle and HP to continue to cooperate and work together in the IT marketplace."

Nothing subtle about that. What's remarkable is how rapidly this falling-out has over a hiring dispute has - literally - overnight become the source of a major corporate rift between two of Silicon Valley's bellwether companies. Coincidentally, the last time tech watchers were treated to so public an airing of corporate laundry also involved Oracle; in late 2003 and 2004, the company's nearly year and a half campaign to acquire PeopleSoft was punctuated by acrimonious and sometimes personal comments between the two management teams. Oracle subsequently bought PeopleSoft for a little over $10 billion in late 2004.

It's not clear what Ellison has in mind but his annoyance with HP over a personnel dispute makes it clear that this is becoming personal. In Godfather terms, Tom Hagen is getting elbowed aside by Sonny. Time to go to the mattresses? Sounds like that's not too far off.

Charles Cooper is an executive editor at CNET News. He has covered technology and business for more than 25 years, working at CBSNews.com, the Associated Press, Computer & Software News, Computer Shopper, PC Week, and ZDNet. E-mail Charlie.