Oracle, the world's largest database producer, whose CEO Larry Ellison a great friend of Steve Jobs and a member of the Apple board of directors, as well as being in difficulty due to the tough competition from IBM's DB in the high end of the market and Microsoft's SQL Server in the lower one, stumbled upon a grain of colossal proportions that is making her lose face and could cause her big sales problems.
Oracle and the state of California signed a $ 95 million, six-year deal in May 2001, which was expected to save the Golden State $ 163 million in the statements.
The problem that strange rumors began to emerge at the beginning of 2002, and investigations started in April, which through independent auditors' assessments established that California would actually buy more Oracle licenses than the number of the employees, that the cost did not include the updates, that the agreement was concluded with an unusual speed, that the duration of the same at least strange for the sector and that ultimately the expense would have been at least six million dollars higher than due .
From the testimony listened to and from the debate that resulted from the scandal, the fact that Oracle is well known in the environment for its aggressive sales tactics begins to emerge, in fact the investigation has spread like wildfire, with testimonials from Ohio, North Dakota, Montana and Toronto. The city of Toronto is trying to pull itself out of an $ 11 million contract with Oracle, which appears to be ten times what the city needs.
In May, as soon as the scandal broke out, Governor Davis and Attorney General Lockyer, to avoid the impression of a conflict of interest, returned the contributions to their election campaigns that came from Oracle (respectively $ 25,000, received just after signing the deal, and $ 50,000), but after a few days of investigation, here comes the embarrassing of an Oracle lobbyist, Ravi Mehta, who instructs the company in detail on which political figures to actively support with cash donations, in order to earn Consent. The memo lists nine political figures who are identified as "important" to Oracle, and suggests how much money each of them should receive.
Oracle spokespeople argue that Metha's job as a lobbyist, and that she suggests suggestions as such, but that her email was trashed by the company, and that donations to the Governor and Attorney General were made because Oracle has based in California and therefore considers it important to participate in the political process of that state.
The Information Systems Director of the State of California, who resigned, burst into tears during interrogations and claimed to have been the scapegoat for other people's maneuvers. (By Marco Centofanti)