Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Oracle's Hurd for Phillips swap: What's the customer relations impact?

By | September 6, 2010, 5:34pm PDT

Oracle has a new customer relations front man: Former Hewlett-Packard CEO Mark Hurd. Oracle’s move to name former Hurd as co-president is going to be interesting to watch from a customer relations perspective. Why? Hurd’s arrival coincides with the departure of Charles Phillips.

The word that Hurd will land at Oracle is now official. Weekend reports were indicating that Hurd would land at Oracle in a move that was semi-obvious. Oracle CEO Larry Ellison said in a statement:

Mark did a brilliant job at HP and I expect he’ll do even better at Oracle. There is no executive in the IT world with more relevant experience than Mark. Oracle’s future is engineering complete and integrated hardware and software systems for the enterprise. Mark pioneered the integration of hardware with software when Teradata was a part of NCR.

For his part, Hurd said that “Oracle’s strategy of combining software with hardware will enable Oracle to beat IBM in both enterprise servers and storage.” Hurd neglected to mention HP, but he might as well have. Hurd even teased some new Exadata boxes at Oracle Openworld later this month.

Add it up and Hurd’s move to Oracle adds up nicely. Hurd knows hardware. He knows how to sell integrated stacks of IT stuff. And he knows how to acquire companies.

However, three co-presidents is too much. Hurd passes Charles Phillips on the way out. Phillips had a nice tandem with co-president Safra Catz. Catz was finance. Phillips was the customer front man you’d see at product launches, ERP deal closings and other key events. Phillips has been credited by analysts for allaying fears of customers who were acquired. After all, someone had to keep Peoplesoft, J.D. Edwards and Siebel customers hanging around.

Phillips, a former Morgan Stanley analyst, was looking to leave the company. Ellison said in another statement:

Charles has evolved our field culture toward a more customer-centric organization and improved our top line consistency through a period of tremendous change and growth. When Charles approached me last December and expressed his desire to transition out of the company, I asked him to stay on through the Sun integration which has gone well. We will miss his talent and leadership, but I respect his decision.

Not all observers will agree that Phillips was great with customers. However, Phillips was a consistent front man. Now Hurd is that front man. It’s going to be interesting to watch how Hurd will be received by Oracle customers.

Related:

More: The other reason Hurd got ousted: Discontent among HP rank and file

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

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Talkback Most Recent of 11 Talkback(s)

  • Did not Mr. Phillips have an affair, himself
    If memory serves me?
    Is that a requirement at this level of leadership within large corporations?.
    ZDNet Gravatar
    Mister Spock
    6th Sep 2010
  • The end result is the same
    It's a bit like getting held up by a mugger wearing an Armani suit. However else you dress it up, the end result is the same.
    ZDNet Gravatar
    terry flores
    6th Sep 2010
  • RE: Oracle's Hurd for Phillips swap: What's the customer relations impact?
    large corporations like microsoft,hp, oracle, dell and might i add Intel(atleast in india) have no accountability at all.

    even junior level managers are not accountable...corruption is all pervasive
    ZDNet Gravatar
    bhasinusc@...
    6th Sep 2010
  • RE: Oracle's Hurd for Phillips swap: What's the customer relations impact?
    It's sad, very sad. Seeing that one of the reasons why HP fired Hurd was employees satisfaction we can expect that Oracle will become good Executive Search source in next years. In my opinion: Ellison has no clue how to run hardware business, he expects that software sales model can be populated over hardware business, which is totally not true. Hurd assured and made a promise that it's possible (to have same profitability on sw as on hw). And regarding fact that he is far away from being visionary guy he will execute it via cost cutting, building ridiculous sales & support model which will @ the end push customer and employees into IBM/HP/EMC & Co. arms ..
    ZDNet Gravatar
    Dean75
    7th Sep 2010
  • HP needs a good database offering ...
    @Dean75

    Maybe they will pick up some good talent from Oracle as Mark wields his chainsaw?

    I forgot to add: Hurd's contribution to M&A at HP was to beat on price. Robison and his team are the guys behind the scenes picking the plays.
    ZDNet Gravatar
    terry flores
    7th Sep 2010
  • RE: Oracle's Hurd for Phillips swap: What's the customer relations impact?
    Oracle employees better grow eyes on the back of their heads. Mark Hurd can not be trusted. He forced hundreds of NCR employees to take "early retirement" with an accompanying reduced pension. Then he sold most of NCR assets to make it look like they were very successful and took huge bonuses. Then he moved to HP where he "had an affair". That's a clean flowery way to say "sexual predator" today. I wouldn't trust him.
    ZDNet Gravatar
    jimrhenow@...
    7th Sep 2010
  • RE: Oracle's Hurd for Phillips swap: What's the customer relations impact?
    "Oracle has a new customer relations front man: Former Hewlett-Packard CEO Mark Hurd. Oracle?s move to name former Hurd as co-president is " Former Hurd?

    Why do I have to relogin, to post a comment, when I am already logged in?
    ZDNet Gravatar
    dhays
    7th Sep 2010
  • Sleaze for sleaze
    I always felt Oracle was the top sleaze company, and now they have publicly announced just how sleazy they are. If only they would offload Sun to some more reputable corporate owner, then I would be at peace. Until then, neither Oracle nor Sun will be getting any business from me, or anyone else whom I advise.
    ZDNet Gravatar
    bionicbub
    7th Sep 2010
  • RE: Oracle's Hurd for Phillips swap: What's the customer relations impact?
    Customer Relations...I have an idea, what Hurd needs to really make this work for him is an assistant for shows and hospitality events, a greeter. Perhaps a consultant will work for him
    ZDNet Gravatar
    don.hark@...
    7th Sep 2010
  • RE: Oracle's Hurd for Phillips swap: What's the customer relations impact?
    Many thanks for 2012 nfl jerseys this insightful guide. There is generally most unquestionably ideas in best suited right here that I'll use.
    ZDNet Gravatar
    jackson1984-24316069205748857739440257893812
    10th Oct
  • RE: Oracle's Hurd for Phillips swap: What's the customer relations impact?
    Odd but only 50% the write-up is opening up for me. Is that this the mulberry outlet store world wide web webpage or my on-line browser. Will have to I restart my internet browser?
    ZDNet Gravatar
    tomlin21-24319035676893835085146735905770
    11th Oct

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