NEW YORK – While Oracle CEO Larry Ellison kept the competitor bashing to a minimum during his keynote speech at Oracle’s conference on Sunday. SAP and IBM countered several of Ellison’s claims on Monday. SAP, Oracle’s biggest rival, took exception to claims that the ‘in-memory’ feature in Oracle’s 12c database was faster than SAP’s HANA in-memory database. While IBM slammed claims that Oracle’s newest server was twice as fast as and three times cheaper than IBM’s.
This is not the first time the competitors have countered Oracle’s claims about their products. The company has been caught three times for ad campaigns that Oracle’s servers are faster, better, or cheaper than IBM’s. Each time that IBM has complained to the National Advertising Division, the oversight committee has sided with IBM by ordering Oracle to change the ads.
The last time, the oversight committee forwarded the complaint to the Federal Trade Commission to look into potential law enforcement action for false advertising. However, it was not an advertisement, but rather a comparison in a slide deck from a speech that Ellison gave.
In fairness, Oracle is not the only firm that IBM has used this tactic against as Big Blue was able to stop Amazon (NASDAQ:AMZN) from winning a game-changing cloud deal with the CIA worth $600 million.
In response to Ellison’s presentation IBM stated, ‘much like its comparative ads, Oracle’s presentation failed to provide details on the cost-comparison, which must be analyzed to determine the validity of Oracle’s assertion. Oracle has a history of making grandiose claims that are unsubstantiated, but knowing what we have seen in prior comparisons, it would be important to look at exactly what is included in the cost: How much storage and what type was included, what type of maintenance and support was added in, were the very expensive Oracle software licenses added in?’
While SAP founder and Chairman countered Ellison’s claims by stating ‘it’s great to hear Larry singing from Hasso Plattner’s playbook, but Oracle is still missing the mark. They are still trying to make queries run faster but missed the chance to simplify the data management at the same time. SAP HANA has been delivering real-time performance to our customers in real world environments for years.’
Inevitably, Oracle is getting this reaction from their competitors because their advertisements are at some level getting customer’s attention and in a tight tech market that could key in turning Oracle around. Shares of Oracle opened at $ 33.64 on Wednesday.