ORACLE-L Digest -- Volume 2002, Number 120
> ------------------------------
> 
>  From: Steven Lembark <[EMAIL PROTECTED]>
>  Date: Mon, 29 Apr 2002 09:30:40 -0500
>  Subject: RE: How Oracle screwed California
> 
> -- "Boivin, Patrice J" <[EMAIL PROTECTED]>
> 
> > I don't know if Microsoft negotiates -- do they negotiate?
> 
> Quite. They make Norton Simon look like a pushover. See
> coverage of the recent trial for examples.
> 

The California State University system negotiated some pretty good 
education discounts from MS. In the CSU case, Microsoft wasn't 
pushing their products, the CSU was begging MS to give the 
discounts (or so the legend goes). 

Previous negotiations with Novell were a giant pain, so Novell got 
dumped when NT4 became viable as a LAN/intranet server alternative 
to Netware (this was at the time that a transition from Netware v3 
to v4 was being contemplated, along with a fairly vast expansion of 
the number of server boxes).

fwiw, CSU separately licensed Oracle, and has never been involved 
with DOIT, unDOIT, or any of that nonsense as far as I know. Oracle 
gave CSU a pretty good education discount also.

Don't forget that as the DOIT fiasco was progressing, the branch of 
Northrop Gruman (Logicon?) that was hired by DOIT to study the 
State's Oracle licensing ended up getting $28 million of the $41 
million "overcharge"!

Note that the State Employee Union was complaining about DOIT's 
handling of Oracle licenses in AUGUST 2001!!!

http://www.calcsea.org/csd/committees/IT/20010830-oracle.asp
(contains broken links)


California State Auditor's (scathing) report (109 pages):

---excerpts---

http://www.bsa.ca.gov/bsa/pdfs/2001128.pdf

...

 | According to its director, beginning in June 2000, 
 | representa-tives of the Department of Information Technology
 | (DOIT) 


 | attended meetings at which state chief information officers
 | (CIOs) expressed concern with how much their respective
 | departments were paying to license and support software. Because
 | of these concerns, in that same month, DOIT contracted with
 | Logicon Inc. (Logicon), a software reseller and provider of IT
 | sys-tems and support services, to review industry best practices
 | for enterprisewide software licensing and provide a report
 | delineating alternative licensing strategies for the State to
 | consider. Although DOIT received a draft, Logicon never
 | completed the report, and DOIT ultimately cancelled the contract
 | on November 30, 2001. Between February and May 2001, Logicon
 | made a series of sales presentations for representatives of
 | DOIT, General Services, and the Department of Finance (Finance).
 | Included in at least one of these presentations was a document
 | in which Logicon suggested the State employ it to negotiate an
 | ELA with Oracle. 

...

---end excerpt---


Here is the thinking of one of Sacramento's venerable political 
corruption analysts, journalist Dan Walters:

http://www.sacbee.com/content/politics/story/2436460p-2880957c.html

---begin excerpt---

Dan Walters: Davis, top aides scramble to avoid onus for Oracle 
contract debacle

By Dan Walters -- Bee Columnist

Published 2:15 a.m. PDT Tuesday, April 30, 2002

It's amusing, in an appalling sort of way, to watch Gov. Gray Davis 
and his top aides scramble to shun responsibility for the Oracle 
Corp. computer software scandal.

This is, after all, a governor who has boasted that he controls 
virtually every decision made in his administration -- who, in 
fact, has profanely berated underlings who did something without 
his approval.

It stretches credulity to the snapping point for Davis' spinners to 
insist that the governor was completely unaware that his 
administration was signing a massive software deal with Oracle, 
especially because Oracle delivered a $25,000 campaign contribution 
to the Democratic governor's treasury just days after the contract 
was signed.

The $95 million contract, for software that few in state government 
apparently wanted in the first place, first surfaced in a San Jose 
Mercury News article, and a couple of weeks ago, the state 
auditor's office issued a scathing report, suggesting that rather 
than saving money, as Oracle has claimed, the software may wind up 
costing the state many extra millions of dollars.

The audit report touched off the finger-pointing scramble. During a 
Legislative Audit Committee hearing, heads of three state agencies 
disclaimed responsibility for evaluating the software, each saying 
that he assumed that someone else had done it.

Subsequently, the least politically secure of the three, General 
Services Department Director Barry Keene, was sent packing. Keene 
is a former state senator whose erratic personality and lack of 
administrative experience ill-suited him for the job in the first 
place. Making Keene the sacrificial lamb (Keene suggested that his 
marital woes may have contributed to his attention deficit) suited 
Davis better than dumping Finance Director Tim Gage, whom Davis 
needs to get through the state budget crisis, or Elias Cortez, who 
heads the Department of Information Technology.

Cortez would be the more appropriate official to hold responsible 
for the Oracle debacle because his department was created to guard 
against such expensive technology mistakes, but Davis had already 
fired several high-ranking Latino officials and could ill-afford 
another incident, especially because the Legislature's most 
vociferous guardian of Latino affairs, Sen. Richard Polanco, was 
supporting Cortez.

The question remains, however: What did Davis know and when did he 
know it? Claims of gubernatorial ignorance are undercut by 
revelations that one of Davis' closest aides, Susan Kennedy, signed 
off on a memo summarizing the contract. Keene, in fact, testified 
that Steve Nissen, the head of Davis' reinventing government 
initiative, had urged him to speed up the contract. A few months 
later, Nissen left the administration for a position with a Los 
Angeles law firm, headed by former national Democratic Chairman 
Charles Manatt, that also represents Oracle in the software 
dispute.

Despite all of this, the governor's official mouthpieces insist 
that Davis knew nothing of the pending contract and that there is 
no connection between it and the hefty campaign contribution.

Audit Committee Chairman Dean Florez, a Democratic member of the 
Assembly from Fresno, commendably resisted pressures to avoid 
embarrassing the governor. Florez wants to schedule additional 
hearings on the debacle, and it will be interesting to see if Herb 
Wesson, the newly minted Assembly speaker, sanctions a wider probe. 
Wesson is a Davis loyalist who also received a $10,000 contribution 
from Oracle last year.

Davis, as part of his effort to deflect attention from himself, 
says he wants Attorney General Bill Lockyer to investigate what 
happened. But Lockyer received a $25,000 check from Oracle less 
than a month after the contract was signed last May, and leaving it 
to Lockyer is a surefire way to keep the matter bottled up until 
after the election.

The Legislature should pursue this matter vigorously -- as 
vigorously as it did the scandal enveloping former Republican 
Insurance Commissioner Chuck Quackenbush -- but if it is unwilling 
to do so, perhaps the U.S. attorney's office should be brought into 
the case.

---end---

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Author: Eric D. Pierce
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