The recent power sharing arrangement in Oracle could spell disaster for the company.
After Larry Ellison steeped down as CEO of the company he founded, there were two successors that were named to take over. The two are Safra Catz and Mark Hurd who have been co-presidents of the company since 2010. Ellison has been CEO of Oracle which he helped found in 1977. He has stepped down as CEO in order to take on the role of chairman and also that of chief technology officer.
Experts have questioned the wisdom of the decision to have two people sharing the responsibilities and the power of a CEO. Experts warned that this kind of arrangement rarely works and that in a few years time it would not be surprising if there would only be one CEO left.
The CEOs are inheriting a company that is currently struggling. They have to make sure that Oracle can increase its revenues and would be able to catch up with its rivals in the technology field. The company has steadily missed analyst forecast when it comes to revenues.
Oracle has sought to strengthen its presence in specialized software applications for businesses but it is steadily facing stiff competition from smaller rivals which are eating away from its revenue. The two new CEOs will still have to deal with the presence of Ellison in the boardroom which will ultimately affect on the way decisions will be made. Whether that effect will be positive or negative will only be seen in the future.
Catz and Hurd have been running large aspects of Oracle's business for the past few years and they have their own areas of expertise. It seems that they would still stick to those areas even as they take on bigger responsibilities within the company.
