Although former Oregon gov. Retread had been advised well over a year and a half in advance that his "Coverup Oregon" website was going to flop, he chose to ignore it. When the inevitable occurred (and desperate to save his reelection bid), he threw a hissy-fit and ordered the A.G. to file a $6 billion lawsuit against software giant Oracle despite the fact that our crack bureaucrats had only signed contracts for time and materials with the company. Retread's fit of pique ended up costing taxpayers an additional $25 million in legal fees.
After he resigned in disgrace, our accidental governor from Minnesota decided that the state should settle with Oracle, and that has been done. She touts it as a victory. But far from the $6 billion sought, Oracle will pay the state's legal fees and provide it with software for other IT systems. Total cost to Oracle: $100 million. Total cost to Oregon: hundreds of millions.
Oregon’s settlement of its long-running legal war with Oracle last week comes with a hidden price tag for the state — hundreds of millions in likely spending for new IT projects.
That’s a big asterisk on a deal that officials last week portrayed as being worth more than $100 million in benefits to the state. The agreement provided a sort of compensation for the more than $300 million in federal funds and tens of millions in state funds wasted on the Cover Oregon website fiasco.
In addition to its assumption of new IT spending, the pact may contain hidden costs and will significantly boost Oregon’s payments to Oracle over time, according to an expert.
“Oracle made out like a bandit with this,” Dave Welch said after reading the settlement. He is chief technology officer for House of Brick Technologies, an Omaha firm considered a leader in advising Oracle clients on license agreements. “I’d love to see the party (Oracle) threw when they settled this thing.”
Oracle wins big, and Katie portrays the settlement as a victory for Oregon. Because after all, we won't see the actual costs until well after the elections.
The software and support obtained at no cost could “easily exceed” $100 million, but “it will require a substantial investment of effort, time and money to realize its value,” he wrote in an email to Oregon agency directors Friday. The consultant KPMG “estimated that the state would need to spend between $490-515 million to implement a fraction of the software contained in the (Oracle deal),” he added.
Uh-huh: "free" is a very good price - for Oracle. But in the Willamette Valley, we've sort of become inured to this sort of idiocy. The place is dominated by out-of-staters who always vote for anyone with a D on the ballot (and always vote for anything claiming that it's for the children™).