How did Oracle survive the near-fatal accounting and revenue recognition crisis in the early 1990s?

Larry Ellison
Replied byLarry Ellison

Co-Founder, Executive Chairman & CTO at Oracle

Niche: Technology
Revenue: Approx. USD 7.5 Billion/month
Location: Austin, Texas, United States
Started: 1977

In the early 1990s, our aggressive sales culture led to severe overstatements of software licenses, causing our stock price to plummet by seventy-five percent and bringing the company near bankruptcy. That crisis forced me to overhaul senior leadership, institute strict financial controls, and rewrite modern software accounting rules. Surviving that existential threat gave Oracle the operational discipline required to scale into a global conglomerate.

0
From the Full Interview

This answer is part of a full interview with Larry Ellison, Co-Founder, Executive Chairman & CTO at Oracle.

Share this Answer

Found this insight valuable? Share it with your network to help others learn from Larry Ellison's experience.

Cite This Answer

Use this answer in your research, article, or academic work