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Oracle Corporation (NASDAQ: ORCL) is one of the major companies developing database management systems (DBMS), tools for database development, middle-tier software, enterprise resource planning software (ERP), customer relationship management software (CRM) and supply chain management (SCM) software.

Oracle was founded in 1977, and has offices in more than 145 countries around the world. As of 2005, it employed more than 50,000 people worldwide.

Lawrence J. Ellison (Larry Ellison) has served as Oracle's CEO throughout the company's history. Ellison served as the Chairman of the Board until his replacement by Jeffrey O. Henley in 2004. Ellison retains his role as CEO. Forbes magazine once judged Ellison the richest man in the world.

Ellison was inspired by the paper written by Edgar F. Codd on relational database systems named A Relational Model of Data for Large Shared Data Banks.

He had heard about the IBM System R database from an article in the IBM Research Journal provided by co-founder Ed Oates, also based on Codd's theories, and wanted Oracle to be compatible with it, but IBM stopped this by keeping the error codes for their DBMS secret.

He founded Oracle in 1977 under the name Software Development Laboratories. In 1979 SDL changed its name to Relational Software, Inc. (RSI). In 1983, RSI was renamed Oracle Systems to more closely align itself with its flagship product Oracle database with Robert Miner as senior programmer.

In 1990, Oracle laid off 10% (about 400 people) of its work force because of a mismatch between cash and revenues. This crisis, which almost resulted in Oracle's bankruptcy, came about because of Oracle's "up-front" marketing strategy, in which sales people urged potential customers to buy the largest possible amount of software all at once.

The sales people then booked the value of future license sales in the current quarter, thereby increasing their bonuses. This became a problem when the future sales subsequently failed to materialize.

Oracle eventually had to restate its earnings twice, and also to settle out of court class action lawsuits arising from its having overstated its earnings. Ellison would later say that Oracle had made "an incredible business mistake."

Although IBM dominated the mainframe relational database market with its DB2 and SQL/DS database products, it delayed entering the market for a relational database on UNIX and Windows operating systems. This left the door open for Sybase, Oracle, and Informix (and eventually Microsoft) to dominate mid-range and microcomputers.

Around this time, Oracle fell behind technically to Sybase. In 1990-1993, Sybase was the fastest growing database company and the database industry's darling vendor, but soon fell victim to its merger mania. Sybase's 1993 merger with PowerSoft resulted in its losing its focus on its core database technology.

In 1993, Sybase sold the rights to its database software running under the Windows operating system to Microsoft Corporation, which now markets it under the name "SQL Server."

In 1994, Informix Software overtook Sybase and became Oracle's most important rival. The intense war between Informix CEO Phil White and Ellison was front page Silicon Valley news for three years.

Ultimately, Oracle defeated Informix in 1997. In November of 2005, a book detailing the war between Oracle and Informix was published. "The Real Story of Informix Software and Phil White" provides a detailed chronology of the battle of Informix against Oracle, and how Informix Software's CEO Phil White landed in jail because of his obsession to overtake Ellison.

Later in 1997, Ellison was made a director of Apple Computer after Steve Jobs came back to the company. Ellison resigned in 2002, saying that he did not have the time to attend necessary formal board meetings.

Once Informix and Sybase were defeated, Oracle enjoyed years of industry dominance until the rise of Microsoft's SQL Server in the late 90s and IBM's acquisition of Informix Software in 2000 to complement their DB2 database.

Today Oracle's main competition for new database licenses on UNIX, Linux, and Windows operating systems is with IBM's DB2 and with Microsoft SQL Server (which only runs on Windows). IBM's DB2 still dominates the mainframe database market.

In 2004, Oracle's sales grew at a rate of 14.5% to $6.2 billion, giving it 41.3% and the top share of the relational-database market (InformationWeek - March, 2005), with market share estimated at up to 44.6% in 2005 by some sources .

Oracle's main competitors in the database arena are IBM DB2 and Microsoft SQL Server, and to a lesser extent Sybase and Teradata , with open-source databases such as PostgreSQL and MySQL also having a significant share of the market. EnterpriseDB, based on PostgreSQL, has recently made inroads by proclaiming that their product delivers Oracle compatibility features at a much lower price point.

In the applications arena, their main competitor is SAP. On March 22, 2007 Oracle sued SAP, accusing them of fraud and unfair competition.