Oracle CEO taunts Microsoft at Comdex

May Wong

Tuesday, Nov. 13, 2001 | 9:45 a.m.

Larry Ellison relentlessly fired barbs at Microsoft Corp. on Monday and highlighted an Oracle Corp. product that pits the arch rivals in a battle over e-mail software.

Ellison, chief executive of the database software giant, barely left a stone unturned during his keynote address at the Comdex trade show in Las Vegas and a media conference beforehand:

Ellison said Oracle now offers e-mail server software that is more reliable than Microsoft's. It's more secure, he contended, because users' e-mails would be stored on Oracle's "unbreakable" database instead of the "very fragile and breakable" system of Microsoft Exchange servers.

Microsoft spokesman Dan Leach did not attend Ellison's keynote but issued this response: "When Microsoft comes to Comdex, we're here to talk about how we could help customers realize their potential. If Larry wants to focus on Microsoft, that's just free advertising."

Separately, Ellison also told reporters the tough economic environment following the Sept. 11 will probably mean Oracle will miss analysts' earnings expectations of 11 cents per share for the current quarter. Ellison said he now expects earnings of 9 or 10 cents per share.

Earlier media titans AOL Time Warner Inc. and Sony Corp. said they jointly will develop a home networking environment to deliver online entertainment over high-speed Internet connections.

The collaboration is aimed at developing easier ways of linking televisions, stereos, game consoles and other devices to always-on broadband networks that now are used primarily by personal computers.

"Consumers want the Internet to play a greater role in their lives, and are looking forward to the day when broadband can deliver all of a family's home entertainment, information and communications needs over a wide variety of devices," said Steve Case, chairman of AOL Time Warner.

Few product details or timelines were disclosed during an announcement at the Comdex trade show.

But the collaboration pits the biggest names in consumer electronics and Internet access against Microsoft, which this week is releasing its Internet-enabled Xbox video console.

Under the joint program, Sony and AOL will develop home gateway technologies that will allow the sharing of connections and content among multiple devices.

The technology will employ copyright management -- an important element for media companies.

AOL and Sony also plan to design an Internet browser specifically for consumer electronic devices. It also could be made available to other electronics manufacturers.

The companies will explore the possibility of AOL providing access to Sony's networked devices in the United States.

"We believe this collaboration will offer consumers an enhanced broadband experience and create new business opportunities for the whole industry," said Kunitake Ando, Sony's president and chief operating officer.

On Sunday Microsoft Chairman Bill Gates outlined his vision of a "digital decade" in which consumers always are connected to the Internet through personal computers and an array of other gadgets.

The Sony-AOL deal shows Microsoft will not have the only label on next-generation devices, said Richard Doherty, an analyst at the Envisioneering Group.

"This clearly has put a new challenge to Microsoft and any broadband relationship that Sony would have with Microsoft," he said.

Bill Morrow, a tech consultant for Advanced Information Systems of Las Vegas, said this partnership could serve as a strong competitor to Microsoft's Passport system.

"This could be good for consumers because it could provide an alternative to Microsoft. (Microsoft's) Bill Gates, through his Passport initiative, wants to control the entire Internet," Morrow said. "If you have a problem with your PC, Gates wants the consumer to order repairs through the Microsoft website."

The Sun's Kevin Ferguson contributed to this report.

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