TechnologyOracle predicts doom for technology firms

Oracle predicts doom for technology firms

Thousands of technology companies will go bust in the fall-out from the dot.com boom, warned Oracle boss Larry Ellison.

But he added in his interview with BBC New24 that Oracle would not be one of them.

Ellison said the market was making the same mistake of underrating tech stocks now, just as it overrated them earlier. ‘Things are not getting worse, but I don’t think they are getting better,’ he said.

Smaller companies will not survive and there will be a concentration of spending in the larger companies, he predicted. ‘Even if high-tech spending by companies never recovers to its former levels, large firms will see a recovery because the small firms they compete with will no longer be in business.’

He added that he was unconcerned that shares in Oracle have plunged by more than 75% since their peak as Oracle was a cash-rich and highly profitable company.

He said he doubted that tech spending would ever capture such a high proportion of total capital investment as it did for a few years in the l990s.

Related Articles

What is the role of governance, compliance, and control in financial transformation?

Corporate Governance What is the role of governance, compliance, and control in financial transformation?

13h Workday | Sponsored
Grant Thornton joins with Immersive Labs to increase cyber talent

Career Grant Thornton joins with Immersive Labs to increase cyber talent

2w Lucy Skoulding, Reporter
How can accounts payable departments protect themselves from fraud?

Technology How can accounts payable departments protect themselves from fraud?

3w Kristina Russell, Kefron
Six benefits of automating the financial close

Technology Six benefits of automating the financial close

1m Trintech | Sponsored
Audit, MTD, women in accountancy: 5 things we learned from Accountex Summit North

Brexit & Economy Audit, MTD, women in accountancy: 5 things we learned from Accountex Summit North

1m Emma Smith, Managing Editor
Open Banking: an interview with Xero

Business Open Banking: an interview with Xero

2m Lucy Skoulding, Reporter
Hire finance people who welcome and embrace change

Technology Hire finance people who welcome and embrace change

2m Workday | Sponsored
How the fourth industrial revolution is impacting accountancy

Technology How the fourth industrial revolution is impacting accountancy

2m Lucy Skoulding, Reporter