Feds End Contract with Oracle

April 30, 2012

Oracle has taken a big hit recently, when the Feds decided to pull the trigger on nixing Oracle contracts.

This hit will cost Oracle dearly. According to the article on ZDNet, “Feds Nix Oracle Blanket Contract,” the government is reported to have spent $388 million with Oracle last year. While the loss may seem like pennies to a company turning over more than $37 billion, the repercussions may be felt more widely. The ZDNet article asserts:

“Neither party is commenting beyond what has already been said but it will almost certainly mean Oracle will need to go back to the negotiating table for unfulfilled contracts. In the meantime, government buyers can be sure that Oracle sales people will be all over them to maximise spend in the run up to Oracle’s year end, which falls 31st May. The Feds can also be sure that Oracle will send in its audit crews, keen to wring out the most they possibly can from whatever is left on the table.”

The implication lies precisely in what the government is not saying: why exactly they chose to end the relationship. If more businesses decide to follow suit, does this open the door for open source, Microsoft, and Google?

Andrea Hayden, April 30, 2012

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