”Globes” has learned that personnel in the Israel Defense Forces (IDF) Computer and Data Communication Network Center were responsible for pressuring the Ministry of Defense to reassess the choice of Oracle as the supplier of an Enterprise Resource Planning (ERP) system to the IDF.
As was previously reported in “Globes”, the Ministry of Defense is examining its contract with the Israeli branch of software company Oracle, which won a tender to provide an ERP system.
Sources in the IDF computer unit expressed fear that transferring the task to decentralized systems based on servers located in the various units is liable to make the unit’s personnel less necessary for operating the IDF’s computer system in the future. The unit currently has a great deal of power because of its control over the mainframe systems located in the IDF computer center.
Furthermore, significant disputes recently arose over the interpretation of the contract signed between the Ministry of Defense and Oracle. The disputes concerned the extent of the projects agreed upon. Oracle previously announced the project was worth an estimated NIS 100 million and would be implemented by the Air Force and other IDF corps, as well as the Ministry of Defense.
Oracle sources also claimed that the price agreed to by the company was contingent on the company implementing additional projects. On the other hand, sources close to the issue claim the company was given no commitment other than the Air Force project.
The Ministry of Defense responded, “The ERP contract is being examined by an external company recognized as one of the best in the world in such matters. It is best to wait for the company’s opinion.”
Published by Israel's Business Arena on April 12, 2001