SAN FRANCISCO – As co-president at Oracle Corp., ousted Hewlett-Packard Co. CEO Mark Hurd will have to adapt to a new role playing second fiddle to one of Silicon Valley’s most domineering bosses – Larry Ellison.
Although the two men have been pals for several years, working together may test their friendship given that they have both been accustomed to being the top dog. Ellison, in particular, has never left any doubt who’s calling the shots at the business software juggernaut he co-founded 33 years ago.
“Larry is well-known for his strong personality, and there is always a possibility of a personality clash with Hurd,” said Kaushik Roy, an analyst with Wedbush Securities. “Friendships are not permanent – especially not in business.”
In a high-profile power struggle a decade ago, Ellison ousted a president, Ray Lane, who had played an instrumental role in rebuilding Oracle’s sales force after an accounting scandal. Lane resigned after Ellison tightened his grip on the company and stripped Lane of many of his responsibilities.
Many other executives have left Oracle after falling out with Ellison or realizing that he would never loosen his reins of power.
Hurd, meanwhile, knows how to serve as a subordinate, but he has been a chief executive the past seven years and could be angling for Oracle’s top job when Ellison retires. Hurd is 53; Ellison is 66.
Hurd’s appointment could mean that Ellison is finally ready to groom a successor.
Before joining HP, Hurd spent his entire career at ATM maker NCR Corp., starting as an entry-level salesman and working his way up the ranks to become CEO for two years before HP poached him.
He was HP’s chief for five years until he abruptly resigned Aug. 6 in a scandal over sexual-harassment claims made by an HP contractor.
Hurd’s camaraderie with Ellison could be instrumental in Oracle’s quest to steal business from HP.
But because the men are two of the technology world’s biggest celebrities, if they don’t hit it off as boss and subordinate as well as they have as buddies, it could create more drama to the soap opera surrounding Hurd’s stunning downfall at HP.
“Marriages that seem to be made in heaven don’t always end up that way,” said Kenneth Freeman, dean of Boston University’s School of Management.
Hurd will have plenty of room to maneuver, as head of Oracle’s global sales, consulting, marketing and technical support divisions, “but he has to remember that at the end of the day, the CEO of Oracle is Larry Ellison,” Freeman said.
Oracle declined to make Hurd and Ellison available for interviews.
