$1 salary for Oracle CEO Larry Ellison

Oracle CEO Larry Ellison will receive a base salary of $1 for fiscal 2010, according to a regulatory document filed Friday.

That's a decrease of $999,999 from last year. But Ellison won't exactly be starving. He is the world's fourth wealthiest person, according to Forbes.

And according to Oracle's filing with the Securities and Exchange Commission, Ellison's base pay of $1 million in fiscal 2009 only accounted for 1.2 percent of his total compensation anyway. Ninety-seven percent was in the form of stock.

Still, Ellison's new $1 base pay puts him on the salary pedestal with the likes of Apple CEO Steve Jobs and Google co-founders Sergey Brin and Larry Page.

"The compensation committee recognizes that Mr. Ellison has a significant equity interest in Oracle, but believes he should still receive annual compensation because Mr. Ellison plays an active and vital role in our operations, strategy and growth. Nevertheless, during fiscal 2010, Mr. Ellison agreed to decrease his annual salary to $1," Oracle said in the filing.

Oracle's fiscal 2010 began June 1.

Ellison, who is 64, founded Oracle in 1977. According to the SEC filing, he owns 1.18 billion shares of Oracle, or 23.4 percent of the company's total stock.

Agencies

Will Larry Ellison foray into netbook market?

Oracle Corp Chief Executive Larry Ellison is considering getting into the business of selling low-cost laptop computers, one of the fastest-growing sectors of the technology business.

Ellison said on Tuesday that he is looking at entering the market for so-called netbook computers after his software company completes its planned $7 billion purchase of computer maker Sun Microsystems Inc.

Sun also controls the Java computer language, which Ellison told programmers at a Java users' conference could be employed to run netbooks.

"I don't see why some of those devices shouldn't come from Sun," said Ellison, who runs the world's third-largest software maker. "There will be computers that are fundamentally based on Java."

That would put Oracle in competition with companies like Google Inc, Hewlett-Packard Co, Dell Inc and Acer Inc, which either make netbooks or develop software for them.

The netbook phenomenon took off in 2008 to the tune of 11.7 million units, led by companies such as Acer and Asustek Computer Inc that were quick into the market. Nearly every PC vendor offers them these days.

Analysts forecast 20 million to 30 million netbooks will be sold this year, making up an ever larger part of overall laptop sales and marking one of few tech sectors still experiencing robust revenue growth.

Ellison made the comments during his first public speech since Oracle announced plans to buy Sun.

Although netbooks are relatively new, Ellison deserves some credit for their rise.

More then a decade ago he introduced a lightweight alternative to the PC known as the Network Computer, which was built primarily to connect to the Internet. The machines, which competed with ones running on Microsoft Corp's Windows operating system, failed to take off after their launch in 1996.

Agencies

Does SAP sees signs of recovery from recession?

SAP Co-Chief Executive Leo Apotheker said the next few months may bring "glimmers of hope" for the global economy.

Apotheker also said he believes the business software maker should stay independent, following fresh speculation in European markets that Microsoft Corp could bid for the German company. The talk was sparked by Microsoft's plans to sell a multibillion-dollar debt issue.

"We're probably starting to see a stabilization of the situation," Apotheker said at a news conference in New York. "We'll probably start to see some glimmers of hope in the second half of the year for the global economy." Global markets will likely see a fuller recovery in 2010, he added.

The S&P 500 and Dow industrials pared losses after his comments. Apotheker, who will become the sole CEO of SAP when Henning Kagermann's retires later in May, declined to comment on the Microsoft speculation, but said he believed it is in SAP's interest to remain independent.

"Our customers believe an independent SAP is the best value they can get," he said. Rumors periodically surface that either IBM or Microsoft might acquire SAP, which sells business management applications to large businesses that neither of those technology giants have in their portfolios.

Apotheker criticized rival Oracle Corp's decision to purchase hardware maker Sun Microsystems Inc, saying that businesses do not want to buy from vertically integrated technology companies that sell software alongside the computers that run it.

"I'm sorry to disappoint you," he said in response to a question on how Oracle's $7.4 billion purchase of Sun might reshape the industry. "It won't affect the industry much."

But Apotheker said SAP will do a few acquisitions "as we go along." SAP announced on Monday that it bought privately held Clear Standards, a small maker of software that helps businesses manage greenhouse gas emissions. Apotheker did not discuss financial terms of the acquisition.

Sterling, Virginia-based Clear Standards sells software that helps companies measure and mitigate greenhouse gas emissions, which contribute to global climate change and are increasingly coming under regulatory scrutiny.

Apotheker also said that previously announced job cuts are progressing as planned at SAP. The company is not planning any more job cuts, he added.

Agencies

IBM acquires data discovery software Exeros Technologies

Software giant IBM has acquired Piyush Gupta co-founded Exeros Technologies, a provider of data discovery software, intending to capture the Business Analytics Optimization Consulting market.

The acquisition is seen as the return of IBM's strategy of capturing the small scale software companies. However, the internal team of Exeros including the top management and the Research and Development wing will be retained. Exeros was founded in 2002.

Technology and Business Research (TBR) considers this acquisition as a big strategic move by the company in the field of the Business Analytics, especially as the market has seen a recent acquisition of SUN Microsystems by Oracle, in which IBM had failed.

TBR states the valuation of the Exeros Technologies to be around $50 Million, while the firm has not officially disclosed the amount of the sale of the assets. The deal is said to be a significant one as Exeros technology is helpful in making the IBM's Information on Demand more enhanced.

The deal might give IBM an added advantage to take on the rivals like Oracle, which has already succeeded in acquiring Sun, which will increase the competition in the market.

"All organizations today are faced with the daunting challenge of turning massive amounts of information into insights to guide their businesses, but many are held back by the complexity of corporate data sources," said Ambuj Goyal, general manager, IBM Information Management. "The combination of IBM and Exeros will enable companies to more intelligently manage their data across all formats and computing platforms, creating a smarter enterprise," Goyal added.

With this acquisition, IBM will look to develop smarter business systems. It will also help to adapt to the changing market and to deliver much efficiently. By this acquisition, the customers will be able to find and access the desired information stored in multiple databases. The companies' clients will be preserved and will enjoy broader set of capabilities without replacing the systems. Exeros was named in si100 listing of siliconindia magazine in 2007.

Agencies

Oracle won't divest Sun's hardware business, assures Ellison

Oracle Corp Chief Executive Larry Ellison said he won't sell off Sun Microsystems Inc's hardware business, dispelling speculation that he only wanted the company for its software units.

Ellison shook up Silicon Valley last month by sealing a more than $7 billion deal to buy Sun, the world's No 4 maker of server computers and also the developer of Java and Solaris software. Oracle unexpectedly swooped in after Sun's talks with International Business Machines Corp broke apart.

"We are definitely not going to exit the hardware business," Ellison said in an email interview with Reuters. "If a company designs both hardware and software, it can build much better systems than if they only design the software. That's why Apple's iPhone is so much better than Microsoft phones."

His comments fly in the face of the belief of some analysts that Oracle, the world's largest database software maker, may divest Sun's server business and retain just its software assets, such as Java and Solaris.

Oracle's steadily rising profit margins have impressed Wall Street in recent years, and analysts say it is a risky move for it to buy Sun, which has lost $2 billion in the first three quarters of its current fiscal year.

Ellison declined to respond to a question on what he would do if efforts to turn around Sun's computer server business run into trouble. Sun's losses have piled up after losing market share to IBM as well as Hewlett-Packard Co.

His comments may reassure businesses that were hesitant to buy Sun hardware due to uncertainty over its future, said Charles King, an analyst with Pund-IT Research.

"There has been some speculation that Oracle is going to auction off Sun by bits and pieces to the highest bidder," King said. "You end up with customers, many of whom own millions or tens of millions of dollars of Sun hardware, looking for another vendor to deal with."

INVESTING IN SPARC CHIPS

Ellison said he plans to boost investment in Sun's SPARC microprocessors, which serve as the brains in its line of high-end Unix computers. The biggest buyers of these servers are large corporations and government agencies.

He believes that by jointly developing Oracle's existing arsenal of software with Sun's computers and SPARC chips, they can build machines designed for specific purposes that work better than ones pulled together from separate components.

Oracle has sought to do this in the past through partnerships with hardware makers, including HP.

"Once we own Sun, we'll be able to plan and synchronize new features from silicon to software, just like IBM and the other big system suppliers," Ellison said in the interview.

Oracle plans to work with Japan's Fujitsu Ltd, which helps Sun design its SPARC microprocessors, to add new features that will improve the performance of Oracle's database software when used on Sun's servers. That will make Sun hardware more competitive versus rival products from IBM than it is today, the CEO added.

The acquisition makes Oracle the world's fourth-largest maker of servers, and puts the software maker into the No. 2 slot in the high end of the server market, which was worth about $17 billion last year.

STORAGE

Ellison also said he intends to hold on to Sun's data storage business and its tape backup unit, which compete with EMC Corp and IBM.

"Sun was very successful for a very long time selling computer systems based on the SPARC chip and the Solaris operating system," he said. "Now, with the added power of integrated Oracle software, we think they can be again."

Sun rose to prominence in the 1990s but never fully recovered from the dot-com bubble burst in the early 2000s, when demand for its high-end servers cratered.

Laura DiDio, an analyst with ITIC, said Oracle may be able to help Sun recapture the cache it once claimed as one of the world's most-respected technology companies.

"Sun has three decades and billions of dollars in investment in superlative hardware. They have some brilliant engineers," she said. "But Sun's marketing has not matched its technology. Larry Ellison is brilliant at marketing."

Agencies

Oracle may layoff 10,000 jobs after Sun deal

Global IT giant Oracle's $7.4 billion acquisition of Sun Microsystems could terminate 10000 jobs, predicted a financial analyst, as per a report in IDG News Service.

Excluding charges related to the restructuring, Oracle expects the Sun deal to contribute $1.5 billion toward its earnings next year and $2 billion in the second year of the acquisition, making it more profitable in per-share contribution in the first year than the company had planned for the acquisitions of BEA, PeopleSoft and Siebel combined, according to Oracle President Safra Catz. Meanwhile, Tony Sacconaghi, a well-respected technology analyst with Sanford C. Bernstein & Co said, "That profitability will come via layoffs." Sacconaghi had been forecasting $800 million in operating profit for Sun's fiscal 2010, rather than the $1.5 billion predicted by Oracle.


"In order to deliver $1.5 billion in profit, Oracle would need to boost profits by $700 million assuming no material revenue erosion, which suggests incremental headcount reductions of 5,500 to 10,000 depending on timing," Sacconaghi wrote in a research note. But, Oracle declined to comment on any possible layoffs.

The acquisition was announced Monday, just two weeks after Sun's previous suitor, IBM, had walked away from the table after being unable to come to acquisition terms.

Analyst firm Technology Business Research (TBR) agreed that layoffs are coming, predicting that sales and marketing staff will be hit hardest. "Oracle will rapidly rationalize Sun's cost-base," the company said in a report on the deal. "This means general layoffs and a reshaping of cost centers such as services and support."

Sun is already in the process of slashing between 15 to 18 percent of its workforce, or as many as 6,000 employees.

Agencies

Is IBM no longer keen on buying Sun anymore?

IBM is no longer interested in buying smaller rival Sun Microsystems Inc at any price, CNBC reported, although many investors appear to believe a deal was still possible.

Citing sources close to Sun, CNBC said the high-end computer maker had approached International Business Machines Corp earlier this week to ask it to return to the negotiating table, indicating that Sun would be flexible about price.

But IBM has decided it is not interested in any further negotiations with Sun, the cable news network reported, citing sources close to IBM. IBM and Sun declined to comment.

IBM had withdrawn a $7 billion offer for Sun earlier this month, after the smaller company rejected the bid of up to $9.40 per share as too low, sources with knowledge of the matter have said.

Shares of Sun were up 4.24 percent at $6.39 after the CNBC report, but lower than before the market opened on Thursday. Sun traded at around $4.97 before talks between the two technology companies were first reported in March.

Avian Securities' head of research, Avi Cohen, said he believed the two sides would talk again.

"If the deal made sense a couple weeks ago, it certainly would still make sense today," he said. "If there was a willingness, which I think there is, if there was a business case, which I think there is, I think they will start up talks."

CNBC said IBM decided against the move after looking at Sun's structured contracts, as well as change of control clauses that would make an acquisition of the company costly.

It also reported that IBM's contacts within the US Justice Department, US Securities and Exchange Commission and the European Union have all advised the company that such a merger could be subject to an antitrust review lasting six to nine months.

Analysts have said a deal may be crucial for Sun's long-term survival as it has been losing market share in servers to IBM and Hewlett-Packard Co, and analysts expect it to report a third straight quarter of losses excluding special items.

Sun, which rose to prominence in the 1990s, had been searching for a buyer for several months, according to bankers.

The Silicon Valley company never fully recovered from the burst of the dot-com bubble burst in the early 2000s, when demand for servers cratered. It has also failed to fully capitalize on its software assets, including its Java software platform.

Agencies

Sun Microsystems seen as first salvo in tech battle

Quite a few technology companies could lose their independence in the next year or so as the battle among industry giants IBM, Hewlett-Packard Co and Cisco Systems Inc heats up.

The weak economy notwithstanding, Cisco this week announced its entry into the computer server market now dominated by HP and International Business Machines Corp.

And IBM is in talks to buy high-end server maker Sun Microsystems Inc, sources with knowledge of the matter said on Wednesday.

As these companies deliberately step on each other's toes to search for growth, analysts and bankers say the deals market is warming up with cash-rich tech powerhouses hunting for niche technologies at bargain prices.

Virtualization software maker Citrix Systems Inc, storage company NetApp Inc, and network equipment makers Brocade Communications Systems Inc and Juniper Networks Inc are among those that could catch the eye of tech bellwethers looking to compete in new markets, analysts said on Wednesday.

"If I own 60 percent of a market, maybe I can get to 65 percent, but really, I need a new market," said Peter Bell, a venture capitalist at Highland Capital Partners, of the dilemma that faces maturing tech companies.

Morningstar Inc analyst Rick Hanna agreed: "They're all in the war for increasing the total addressable market."

The biggest tech companies have been trying to become one-stop storefronts for business customers for years, offering software, services and hardware for everything from the data center to the desktop as their own core businesses slow down.

The larger impetus behind any deal making is the advent of two hot trends: virtualization and "cloud computing."

Virtualization software lets businesses reduce space and energy usage in their data centers, while cloud computing technologies let them access applications over the Web. Data centers house computing equipment used by companies.

The "arms race" among companies like Cisco, HP and IBM did not happen overnight, Jeff Bistrong, a technology banker at Harris Williams & Co, an investment banking firm said on Thursday.

HP's purchase of technology outsourcer Electronic Data Systems last year already pit it directly against IBM.

"What's different is we're in a major recession, enterprise values have been significantly diminished," Bistrong said.

Companies held on to their cash in the past few months as they assessed the damage to their business from the recession, said Howard Lanser, a mergers and acquisition analyst at Robert W. Baird said on Wednesday.

But now, the price tags of targets are cheap enough to justify longer-term strategic goals and tech companies that have cash will make the "buy decision," Lanser said.

Cisco has $29.4 billion in cash, IBM has $12.7 billion and HP $11.2 billion, according to recent financial statements.

Bargain Hunting

Companies like Microsoft Corp, EMC Corp and Dell Inc also may seek to own choice pieces of the "cloud," as computing becomes more Web-based.

Microsoft has been bullish on cloud computing, but its grip on data center operating systems could be threatened by the move toward remote data centers, forcing the software maker to search for acquisitions, Morningstar's Hanna said.

Microsoft CEO Steve Ballmer said at a conference on Thursday the company plans to buy up to 20 companies this year, with deal sizes ranging from $10 million to $500 million.

EMC, the world's largest maker of corporate storage, may also look for deals to improve its services offering, analysts said.

EMC itself could get acquired by Cisco; the two companies talked about a deal last year, a person familiar with the matter told Reuters in February.

Analysts said the timing of IBM's move to buy Sun illustrates the partly strategic, partly opportunistic thinking of companies that could drive dealmaking in the next year.

"Cisco has clearly laid out all its cards on the market," said Hanna, referring to the networking giant's plans to sell servers for data centers.

Hanna said he reads the talks as "a preemptive move by IBM to take Sun off the table," to keep rivals like Cisco from getting their hands on a bigger piece of the data center pie.

IBM may be betting that it can do a better job than Sun in taking advantage of these emerging technologies, and use it to compete better against Cisco and HP.

The Wall Street Journal reported that IBM has offered between $10-$11 a share for Sun, the Java software maker, or a total value of $6.5 billion, net of cash.

That's the kind of deal size big companies will be comfortable with as they look to plug holes in their software, services and hardware offerings for enterprises, said Highland Capital's Bell.

Bell, a former chief executive of information storage company StorageNetworks, said small acquisitions were unlikely to satisfy the appetites of large companies.

Rather, companies with market values of between $1 billion and $10 billion would be the focus of acquisitions, he said.

The thinking is more like, "If I can find a larger player, maybe I can accelerate and leapfrog, maybe 12 to 24 months, on my competitor," he added.

Agencies

Is IBM in talks to buy Sun Microsystems?

International Business Machines is in talks to acquire Sun Microsystems, the Wall Street Journal said, citing people familiar with the matter.

IBM is likely to pay at least $6.5 billion in cash to acquire Sun, the people told the paper.

That would translate into a premium of about 100 per cent over Sun's closing price on Tuesday of $4.97 a share on the Nasdaq, the paper said.

In recent months, Sun has approached a number of large tech companies in the hopes of being acquired, the paper said. Hewlett-Packard Co declined the offer, the paper said.

Sun is a maker of software and high-end computers. A spokesman for IBM declined to comment to the paper on questions about any talks with Sun. IBM and Sun could not be immediately be reached for comments.

Agencies

Sun Microsystems to layoff 150 more in India

The global layoffs by tech MNCs have started spilling to their Indian operations. IT giant Sun Microsystems reportedly laid off over 150 employees in India around late in January.

According to a news report in a leading daily, most of the laid off employees were software developers working in the company's Bangalore office.

The news report adds that the company may go for another round of lay offs in the last week of February. This round is likely to impact support staff from departments like marketing, human resources and sales.

In November last year, Sun Microsystems announced that it plans to cut as many as 6,000 jobs as the company tries to cope with plunging sales of server computers to financial firms, market-share losses to bigger competitors, and a spiraling stock price.

The reduction, which will eliminate as much as 18 per cent of the staff, will shave $700 million to $800 million from annual expenses, Sun said in an e-mailed statement.

Last week, a Goldman Sachs analyst put the server and software maker's stock on Goldman's `Americas Conviction Sell' list. Goldman analyst David C Bailey said in a client note that Sun's heavy concentration of financial services, telecom and manufacturing customers put it at a disadvantage to its more-diversified competitors. Bailey said that Goldman expects a low double-digit revenue drop at Sun in 2009 due to weakness in several of the company's key verticals and accelerating deterioration of its Unix server market.

Agencies

Sun Microsystems begins laying off 6,000 across all ranks

Sun had earlier last year announced a series of changes designed to align its cost model with the global economy and accelerate the introduction of compelling open source innovations. As part of that effort Sun announced a global workforce reduction of approximately 5,000 to 6,000 employees, representing approximately 15% to 18% of the Company’s global workforce. Sun can confirm that today layoff notifications were given to approximately 1,300 employees as part of that action. Reductions were made across all levels, including vice presidents and directors.

Sun continues to make choices to align strategically, geographically and operationally with its plan for long term growth. We believe the restructuring will result in a more efficient coverage model with resources aligned to growth opportunities. We believe the number of positions that will be eliminated, when combined with the other cost cutting measures and organizational changes being implemented, will put the Company on track for improved financial performance.

Last November, Sun Microsystems said it would be laying off up to 6,000 employees — or around 18 percent of its workforce — after a weak first quarter performance. The cuts are happening today, we’re hearing from a well-placed source, ahead of the company’s second-quarter earnings report next Tuesday.

The server and software company is facing hard times as the market has shifted from closed-source to open-source software technologies, like Linux, and it is facing stiff competition from larger rivals like IBM and HP. To boot, a significant portion of the company’s business is in the financial sector — clients that aren’t in a position to make large purchases these days. Sun has been experimenting with software-as-a-service and other models to help it gain market share, and most prominently purchased open-source database company for MySQL for $1 billion last year. Here’s some more from the strategy announcement it released in November:

As part of this effort, Sun is announcing a global workforce reduction and alignment of its Software organization into new business groups - Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms - with a focus on boosting open source momentum and growing new sectors of the market who view technology as a competitive weapon.

Agencies

Has recession hits jobs in Silicon Valley?

Young professionals and recent graduates have struggled to find work in a sliding economy, but one area — Silicon Valley — has been relatively immune. Until now. Silicon Valley companies that initially resisted the swooning of the economy are looking to cut costs and shed entry-level positions, and people in their 20’s are finding a college degree is no longer their golden ticket to a dream job in high tech.

“I feel like I put in all the work (in school) to not have a job,’’ said Jillian Crawford, 25, who’s been looking for a marketing job with a tech company since she graduated with honors from San Jose State University in June. Crawford has applied to about 25 marketing jobs without receiving much of a response from employers. She remains committed to finding a job in Silicon Valley and would be dismayed if she had to look elsewhere.

That may not be easy

Silicon Valley has been hit hard by the global economic crisis as tech companies, including Hewlett Packard, Yahoo, Sun Microsystems and Applied Materials have shed 140,000 jobs in the last few months, according to Challenger, Gray and Christmas, a consulting group.

Instead, employers are putting an increased value on experience and tenure, something recent graduates lack. And many companies are moving seasoned employees around to fill open positions rather than add another person to the payroll, according to Kerry Kiley, Bay Area regional manager for employment firm Adecco.

“Things out there are very, very tough right now and seem to be getting tougher before they’re getting better — even for the educated,’’ she said. Only engineers buck the trend. It has been tough for Crawford. She moved back home with her parents a little over a month ago to save money while searching for a job.“I was thinking (it would take) maybe a couple weeks, maybe three weeks, before finding a job I was really interested in,’’ said Crawford. “I am completely still shocked at how long it’s taken.’’

Source; Agencies

Tech sector may lose 180,000 jobs

The technology sector is on pace to lose 180,000 jobs this year, the most since 2003, amid a global economic downturn, according to a report.

Challenger, Gray & Christmas, Inc, a Chicago-based global consulting firm which tracks job-cut announcements, said telecommunications, electronics and computer industry companies had cut 140,422 jobs through October 31.

It said 69,654 tech-sector jobs had been cut in the third quarter of the year alone. That did not include major layoffs announced since October 31 such as the 5,000 to 6,000 job cuts at Sun Microsystems.

"At the current pace, the year-end total could reach 180,000, which would be the largest annual total since 2003, when technology firms announced 228,325 job cuts," it said.

A total of 107,295 tech-sector jobs were cut in 2007.