Oracle boss criticises acquisitive trend

Software companies should write applications, not cheques, claimed Larry Ellison, chief executive of Oracle, speaking at Gartner Group's annual US Symposium.

Ellison told thousands of attendees that it was the beginning of the end for software suppliers when they started buying in functionality to try to integrate it with existing products, rather than developing it themselves.

'It's the one thing (Microsoft chief executive) Bill Gates and I are in absolute agreement on - software companies have to develop their own software, not try to acquire it,' he said.

Ellison criticised the acquisition strategy of rival Sybase, which, he claimed, was buying a number of companies with different software that did not fit together. Informix's takeover of Illustra fitted into a similar mould, he argued.

But Oracle's recent purchase of call centre software company, Versatility, was different, Ellison insisted, because it was acquiring one small piece of technology rather than the whole company.

Oracle could have bought computer telephony integration and call centre software vendor, Vantive, instead, he revealed, but did not because Vantive's applications 'did not integrate very well on Oracle systems'.

But when asked by analysts what he would do if he were Mitch Kertzman, chairman of Sybase, Ellison said he would propose drastic action.

'If I were Kertzman, I would tender my resignation immediately and look for a hot startup,' he remarked, adding that he was not criticising his rival: 'I like him - Oracle would offer him a job straightaway.'