San Francisco The database specialist and billionaire company Oracle joins the exodus from California’s Silicon Valley and moves its headquarters to Austin, Texas. The former headquarters in Redwood City in the heart of Silicon Valley will continue to be an important company location, according to Oracle.
The move will enable “many employees to choose their place of work freely and decide whether they want to continue working full-time or part-time from home,” the company said in a mandatory notification to the stock exchange regulator. The company will continue to have existing company locations, including in Seattle, Denver, Orlando.
According to the company, the relocation paves the way for further growth for the world’s second largest software company SAP-Competitors. For a long time he had barely found his way around the new world of cloud computing, and internet companies like Amazon and Google and also Microsoft had easily overtaken Oracle.
Oracle’s co-founder Larry Ellison is one of Silicon Valley’s most colorful personalities with private jets, a private village in California, and his own island in the Pacific. Just like recently TeslaCEO Elon Musk has increasingly alienated himself from the liberal and democratic technology scene in California.
Musk had also announced last week that he wanted to relocate his private residence to Texas. Tax reasons should be the main focus here. Texas, for example, has no income tax on personal income, and California has the highest tax burden on the super-rich in the nation. There are also serious differences in corporate taxes.
Again and again Ellison and Musk clashed violently with the state government on political issues, most recently in the fight against corona. Tesla is known for its uprising during the first corona wave, when Musk let the Tesla tapes continue running despite the ban and only gave in after threatening coercive measures. Ellison and Oracle’s CEO Safra Katz are also considered to be the strongest supporters of the elected US President Donald Trump in the technology world of California.
High taxes, exorbitant rents and poor infrastructure
Real estate experts have recently seen the simmering dissatisfaction with high taxes, exorbitant rents and real estate prices and poor infrastructure in the suburb of the Internet and IT industry turn into open revolt. They are a result of the region’s unprecedented growth. Before the corona pandemic, rents in San Francisco had already left New York, which is notoriously overpriced. This has recently made it increasingly difficult for tech companies to attract employees at all.
The pandemic changed everything. The trend to work from home made it possible to make new location decisions. At first it was small, flexible start-ups that migrated. Now the giants follow. It was only at the beginning of the month that the IT group HPE, formerly part of the split-up HP group, announced that it would move to Houston, Texas. A new company headquarters is currently being built.
The data analysis company Palantir has also moved its headquarters from Palo Alto to Denver in the state of Colorado. In addition, Las Vegas, an hour’s flight from San Francisco, is campaigning aggressively and with low taxes to attract tech companies to offset the collapse of the casino industry.
More: Elon Musk moves to Texas – and attacks the old homeland of California.