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Oracle pact calls for big state money

PAMPLIN MEDIA GROUP: PARIS ACHEN - Gov. Kate Brown announced a $100 million settlement of the Oracle feud over Cover Oregon debacle on Thursday at OMSI, flanked by Deputy General Counsel Misha Izaak (left), and Department of Adminstrative Services Chief Information Officer Alex Pettit.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.”

Craig Guarente, a state consultant whom reporters were referred to by a Gov. Kate Brown spokeswoman, has a different view. The CEO of Palisades Compliance, another leading adviser to Oracle clients, he calls the settlement an “amazing opportunity” for the state to upgrade its systems using Oracle software.

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