Slashdot Mirror

← Back to Stories (view on slashdot.org)

Oregon Settles $6 Billion Lawsuit Over Oracle's Botched Healthcare Website (registerguard.com)

Posted by EditorDavid on from the settled-with-software dept.

"While the crippled website eventually worked, Oregon failed to enroll a single person online [and] had to resort to hiring 400 people to process paper applications." An anonymous Slashdot reader quotes the AP: The state paid Oracle $240 million to create its Cover Oregon website but ultimately abandoned the site and joined the federal exchange to comply with the Affordable Care Act... The state initially asked for more than $6 billion in punitive damages when it filed the lawsuit in 2014 against the Redwood City company, but Oregon ultimately accepted a package that included $35 million in cash payments and software licensing agreements and technical support with an estimated upfront worth of $60 million...

Six years of unlimited Oracle software and technical support included in the deal will save the state hundreds of millions of dollars in years to come and ends a bitter legal battle that has damaged Oregon's "collective psyche," Attorney General Ellen Rosenblum said in a statement. "The beauty of the deal is that if we choose to take full advantage of the free (software), we are uniquely situated to modernize our statewide IT systems over the next six years -- something we could not otherwise afford to do," she said.
"Oracle has insisted the website worked but former Gov. John Kitzhaber chose not to use it for political reasons."

10 of 113 comments (clear)

  1. So Oracle won by El_Muerte_TDS · · Score: 3, Insightful

    > Oregon ultimately accepted a package that included $35 million in cash payments and software licensing agreements and technical support with an estimated upfront worth of $60 million.

    Software licensing which will probably cost them more than $95 in the next few year(s) because they are not using the software according to the license.

  2. So, in a about six years, .... by aix+tom · · Score: 5, Insightful

    ... they will generate a very big cash-flow for Oracle, since they are now uniquely situated to completely vendor-lock-in their statewide IT systems?

    1. Re:So, in a about six years, .... by whoever57 · · Score: 5, Insightful

      .. they will generate a very big cash-flow for Oracle, since they are now uniquely situated to completely vendor-lock-in their statewide IT systems?

      . That was exactly my thought when I read this:

      ."The beauty of the deal is that if we choose to take full advantage of the free (software), we are uniquely situated to modernize our statewide IT systems over the next six years -- something we could not otherwise afford to do," she said.

      Oracle gets to be baked into their IT systems, so deeply that when Oracle asks for a price increase, Oregon's answer will be "how high do you want it?" [ and yes, the accidental double meaning that could be inferred from my imagined quote is probably very appropriate and accurate ]

      This is a deal that only an incompetent or corrupt person would think is a good deal for Oregon.

      --
      The real "Libtards" are the Libertarians!
    2. Re:So, in a about six years, .... by Anonymous Coward · · Score: 2, Insightful

      That was Oracle's plan. It's how Larry always negotiates damages: "Here's more of our crap so you're locked in forever, idiot!"

      He knew he wasn't exactly dealing with the sharpest knives in the drawer and you'd agree if you've ever consulted with IT staff from any state agency. They generally wind up with candidates who can't find work elsewhere because they're not skilled or smart enough.

  3. Win/Win by alphatel · · Score: 4, Insightful


    Oracle avoids a $6 Billion lawsuit
    Oracle nets $200 million after a small reimbursement
    Oracle potentially gives away software that creates a lifetime dependency on their products going forward
    Oracle hasn't actually given away any software yet

    Win/Win
    for Oracle

    --
    When the foot seeks the place of the head, the line is crossed. Know your place. Keep your place. Be a shoe.
    1. Re:Win/Win by alvinrod · · Score: 3, Insightful

      I imagine that some of them understand it perfectly, but that's going to be someone else's problem in the future. Meanwhile they get to act like they were tough on corporations to advance their own political career. It's the same kind of shortsighted thinking we see all too often from CEOs who want to hit performance numbers in order to get a payout before they get another payout from the golden parachute when the card house they've built comes toppling down.

      The bill isn't going to come due for six years so anyone who can't get out a position of responsibility for dealing with the fallout before that hand grenade goes off isn't paying attention.

    2. Re: Win/Win by BlackSabbath · · Score: 5, Insightful

      True.
      I'm currently working at a big bank that has poured hundreds of millions into Oracle for a flagship project that has way under delivered and is a couple of years overdue. The vast majority of their techs couldn't program their way out of a wet paper bag. I thank my lucky stars I'm not involved in that clusterfuck.
      While I'm sure there's culpability in the Oregonian government for this, to hold Oracle blameless would be wrong.
      There was once a time when Oracle was the right answer to the question "which database". Now, I'm pretty sure they're not the answer for anything.

  4. Comment removed by account_deleted · · Score: 3, Insightful

    Comment removed based on user account deletion

  5. Re:Look carefully at the terms by phantomfive · · Score: 5, Insightful

    Oracle won by saying, "Yes, you win, you can pay me."

    --
    "First they came for the slanderers and i said nothing."
  6. Can't be open source by Solandri · · Score: 5, Insightful

    Because using open source means you yourself are accountable. If Oregon had done this project with an open source database and it had failed, the government would be the one bearing the blame. Hiring a big-name company to do it means if something goes wrong, the government's butts are covered. They hired a well-known company to do it for them. If the company couldn't do it, then obviously it must be the company's fault!

    (I use "the government" here only because it's specific to this case and lets me avoid confusing pronouns. The same thing happens when companies choose Oracle or Microsoft or IBM or any other big name without really doing a serious analysis.)