Austinites, watch out; Another tech company is heading into town.
Just days after Elon Musk, CEO of Tesla, announced in an interview that he had moved to Texas, and less than two weeks after HP Enterprise, a spin-out of legendary Silicon Valley company Hewlett-Packard, announced plans to move to Texas separately, Another of the Bay Area's best-known brands – Oracle – is setting new standards and also heading east to Texas.
The news was first reported by Bloomberg. Oracle confirmed the move in a statement sent to TechCrunch saying the company has moved its corporate headquarters from Redwood Shores, California, to Austin, along with a "more flexible workplace policy." “We believe these steps represent the best position for Oracle for growth and offer our employees more flexibility about where and how they work. "
A spokeswoman declined to answer any further questions related to the move, but Oracle says "many" of its employees can choose their office location and continue to work part-time or full-time from home.
HPE and Oracle are not the first major technology companies to have planned such moves recently. At the end of last year, the brokerage giant Charles Schwab said it would be leaving the Bay Area for Texas when it announced its $ 26 billion merger with TD Ameritrade, despite choosing Dallas, about 200 miles from Austin.
Technology giant Apple and Google have also expanded their presence in the state. Apple announced in 2018 that it would build a $ 1 billion campus in Austin. Meanwhile, Google, which opened its first Austin office 13 years ago, announced last year that it was starting to rent far more space around the city.
Taxes, cheaper living costs for employees, lower business costs and less competition for talent are among the main drivers of business moves, although there is also a growing feeling that culture is a factor.
While California is Democrat-led, Texas is Republican-led, and as the gulf between the two parties widen, so does the gulf between their respective supporters, with self-described centrists saying they feel alienated.
Oracle co-founder and chairman Larry Ellison was one of the few top tech executives to openly endorse President Donald Trump.
Joe Lonsdale, co-founder of venture firm 8VC and Palantir Technologies (who himself recently traveled from Palo Alto to Denver) recently announced his own move this year from California to Texas in the WSJ, writing, “Politics in the state is many things Respect closed to various ideas. We grew tired of California's intolerant left, who would demonize opponents rather than discuss honest disagreements. "
In an interview with reporter Kara Swisher that fall, Musk suggested that he was also outside of democratic circles and described his political views as “socially very liberal and then economically right of the center, maybe or the center? I dont know. Obviously I'm not a communist. "
While Austin becomes a port of call for many of California's richest Contrarians, others travel to Florida. Coincidentally or not, Florida is another Republican-controlled state that, like Texas, doesn't levy state taxes.
Keith Rabois, A Founders Fund investor, who recently left the Bay Area for Miami, contributed to the NeverTrump PAC in 2016, and said his first choice for U.S. president this year would be Democratic contender Pete Buttigieg. But he was also openly concerned about democratic socialism, the promotion of which the GOP has long accused the Democrats of.
Venture capitalist David Blumberg, He recently announced a Trump supporter who is also going to Miami. Blumberg said he was facing "poor governance locally in San Francisco and nationwide in California". Still, he seemed frustrated with the Bay Area some time ago.
As Blumberg Vox told Vox last year, he believes tech platforms are biased against conservatives. He also told the outlet that there were far more Trump supporters in the valley than anyone could imagine, and that “we generally keep our heads down” because “people who go out for Republicans and for Trump either forbid or do business can turn black. ”
Regardless of the impetus, a longer-term question is whether these steps will prove permanent – especially for people and smaller outfits who are moving.
At least one tech manager, Ev Williams, co-founder of Twitter and Medium, has returned to the Bay Area after moving – in his case to New York. Williams, who was largely "looking for a change," moved his family late last year after spending 20 years in the Bay Area, he recently told TechCrunch. Then COVID struck.
“I'd never lived in New York before and thought, 'Why not go? Now seems like a good time. “It turned out that I was wrong. (Laughs) It was a very bad time moving to New York. "