Day 2 Wrap, Oracle OpenWorld 2014 with Dave Vellante, Stu Miniman, and David Floyer @theCUBE #*OOW14* For the third quarter in a row, Oracle, Corp. failed to meet many analysts’ expectations in its most recent earnings report. Is the software giant in trouble? It depends on who you talk to. As the Oracle Open World 2014 (#OOW14) conference kicks off today at the Moscone Center in San Francisco (from which theCUBE will be broadcasting live), we asked six industry analysts to share their opinions on Oracle’s health. They discussed Larry Ellison’s departure as CEO, the company’s cloud strategy, its market growth, its strategy to combine hardware and software, its recent acquisitions and its social software solution launches. The consensus was that Oracle is making the right moves but that its late start and large legacy business limit its nimbleness. However, its powerful brand is an enormous asset. The analysts we contacted for this story include Dave Vellante, chief analyst and CEO of Wikibon Research; Rick Sturm, founder & CEO of analyst firm Enterprise Management Associates; Frank Scavo, president of IT research firm Computer Economics, Inc.; Chad Eschinger, VP research, software & supply chain management at Gartner, Inc.; Rob Enderle, owner and principal analyst at the Enderle Group; and Tony Baer, principal analyst at research firm Ovum. . On Larry Ellison sailing away from CEO title . Ellison ran research and development (R&D) for years so his new title as CTO is not much of a change, according to Dave Vellante, Chief Analyst and CEO of Wikibon Research. “Last year, when Ellison skipped Oracle Open World for the sailboat race, you got a sense of what life would be like without Ellison. I think he’s been considering some succession planning,” said Vellante. The way others read the news, Ellison’s so-called exit is really not much of an exit, and may even be intended to distract attention from the company’s earnings shortfall. “In my opinion, this is the biggest non-exit I’ve ever seen,” said Frank Scavo, President of IT research firm Computer Economics, Inc.. “He is not leaving Oracle. He’s not even stepping away from day-to-day operations. He will still have all of engineering and product development reporting to him.” Scavo said a real exit would look like Steve Ballmer’s departure from Microsoft. Ballmer not only stepped down as CEO but also resigned from the board of directors. “Larry is not leaving the building,” said Scavo. “If I were a cynic, I’d say that the timing of this announcement has a lot to do with the fact that Oracle missed its quarterly numbers.” Rick Sturm, via LinkedIn Rick Sturm, via LinkedIn On the other hand, Ellison may really think it’s time to throttle back, said Rick Sturm, founder & CEO of analyst firm Enterprise Management Associates. “He turned 70 this year. Perhaps he had planned that milestone as the time when he would step down,” Sturm said. “Perhaps he wants to go out on top, for example, while Oracle is still enjoying some relatively good times.” Echoing other analysts, Sturm asserted, “Anyone who believes that Larry is actually relinquishing control of the business is probably also clinging to their belief in the tooth fairy.” Co-CEOs Safra Catz and Mark Hurd “may have a bit more latitude than they have had to date, but Ellison cannot and should not become an absentee landlord,” Sturm commented. “Too much of his personal wealth is still in Oracle stock to take that risk.” The co-President arrangement has worked at Oracle, Sturm added, but a co-CEO scenario is different. “It has not worked out well in many other instances where it has been tried,” he noted. “I do not foresee this arrangement at Oracle working well or lasting long.” Writing on the Gartner blog, VP of Research, Software & Supply Chain Management Chad Eschinger said he expects the executive shuffling to have “little to no immediate impact.” His opinion was echoed by Tony Baer, Principal Analyst at research firm Ovum. “The change in titles simply formalizes a working arrangement that has been in place for several years,” said Baer. Rob Enderle, via LinkedIn Rob Enderle, via LinkedIn In fact, Ellison’s power may have actually increased, said Rob Enderle, Owner and Principal Analyst at the Enderle Group. If you assume that the Executive Chairman is the de facto CEO and the other two CEOs report to him, then Ellison has consolidated power. “An Executive Chairman’s job is considered both full-time and the highest executive position in the company,” Enderle said. “The CTO job adds a second salary, so he effectively gave himself a big raise, but I doubt he’ll be working any more hours.” Enderle characterized the shift as “a way for Ellison to make more money but not have to report it. He must think we are all idiots.”