War of words in Silicon Valley

SILICON Valley is known for its risk-taking, irreverent, outrageous approach to business so maybe it is not surprising that a blistering war of words involving some of the raunchiest public sparring by businessmen in years has barely registered on the radar screen.

Now, however, the business world and the US Press are paying attention to the harsh talk fired at Microsoft founder Bill Gates and his chief executive Steve Ballmer by colourful rival chiefs Scott McNealy of Sun Microsystems and Larry Ellison of Oracle.

Will the tongue-lashing stop now that Microsoft is nearing what appears to be a soft settlement of the longrunning anti- trust suit backed so forcefully by its smaller Silicon Valley rivals?

McNealy's distaste for Microsoft is legendary. He once lashed out at its much hyped managerial success, saying: 'Bozo the Clown could manage a monopoly successfully.'

He has called Ballmer and Gates 'Ballmer and Butthead', a reference to foul-mouthed cartoon tag team Beavis and Butthead. Ellison is reported to have once used a computer generated image of Gates 'giving the finger' to Oracle as a 'motivational' tool for his staff. Ellison has also debased Microsoft's products, saying one was so easily broken by Oracle it was 'boobytrapped'.

Most of the public potshots came while the two companies served as the corporate lightning rod for the Government's years-long anti-trust campaign against Microsoft.

Many watchers thought the verbal assault - never returned by Microsoft executives in public - would ease now it is clear that the company will not be broken into pieces by the federal government. But a month ago in New York Ellison continued the attack. 'We won't rely on the government to help us,' he stormed.

Some public relations consultants are doubtful that the two combative Silicon Valley chiefs will have any lasting impact in turning public opinion against the software giant. 'These guys are beginning to look desperate now that the government is almost through with the anti-trust case,' says Grace Schiraldi, president of Synaps Communications. 'Microsoft is keeping a low profile, keeping quiet and coming out smelling like a rose.'

McNealy told USA Today newspaper that he wished he could stop attacking Microsoft's domination but could not because everyone else is afraid to stand up to the Seattle-based market leader.

One Press pundit recently suggested McNealy and Ellison might trace their recent public expressions to the trajectories of their own net worth. Ellison's personal wealth dropped $21bn or 52% to $19bn last year, while McNealy's net worth fell 56%, according to CNET's Wealth Meter, which ranks tech execs based on cash and options rewards. Ballmer was a tech titan anomaly last year - his net value jumped a healthy $16bn. He may be laughing at his rivals - all the way to the bank.