Oracle Pays $46 Million to Settle Kickback Lawsuit

By Cindy Waxer February 01, 2011

Oracle’s acquisition of Sun Microsystems is like the purchase that keeps on charging. The tech giant has agreed to pay $46 million to settle a lawsuit over alleged kickbacks to win government contracts, according to an article by the Associated Press.

The Department of Justice charged that Sun Microsystems, which Oracle acquired in January 2010, and other technology companies paid kickbacks to Accenture so that the systems integrator would recommend that federal agencies purchase Sun products amounting to hundreds of millions of dollars’ worth of contracts.

The legal settlement is a hefty inheritance given that Oracle purchased Sun Microsystems for $7.30 billion in January 2010. In September, Oracle announced plans to launch new products combining its software with that of Sun Microsystems.

In fact, TechZone360.com reveals that among today’s server manufacturers, Gartner reports that Hewlett-Packard dominated the market with revenue increasing 22.5 percent in the quarter. Dell, on the other hand, witnessed revenue rise 25.6 percent while IBM and Fujitsu experienced a 9.9 percent and 5.2 percent uptick respectively.

Gartner reports that Oracle witnessed a 2.6 percent drop in server revenue. Nevertheless, Gartner’s findings point to overall growth for the entire tech industry. More and more high-tech companies are banking on increasing technology spent on hardware such as servers in recessionary times to drive revenue. In fact, Gartner has forecasted a 5.3 percent rise in global IT spending in 2010 to $3.4 trillion, after a 4.6 percent fall in 2009.

Want to learn more about the latest in communications & technology? Then be sure to attend ITEXPO East 2011, taking place Feb 2-4, 2011, in Miami. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.




Edited by Tammy Wolf

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

How Do the Year's Threat Predictions Match Reality?

By: Special Guest    8/24/2016

Last year, Fortinet's FortiGuard Labs global threat research team made a series of predictions about cyber threats in 2016. We are now halfway through…

Read More

Automakers Invest in Wearable Tech Pilot Programs

By: Lindsey Patterson    8/24/2016

The advent of wearable technology has recently generated a number of creative products. Consumers check for email messages using "smart" watches and i…

Read More

AI's Major Role in EU's New Data Privacy Regulations

By: Special Guest    8/23/2016

Earlier this year, the European Union passed the General Data Protection Regulation - landmark legislation addressing data protection and privacy conc…

Read More

Broadband Delivered by Fiber Proves Better than Alternatives

By: Doug Mohney    8/23/2016

We're a couple years out on an unprecedented boom in broadband, with new wireless schemes, 5G, high-flying drones and constellations of satellites cov…

Read More

BYOD Could Mean Bring Your Own Disaster

By: Special Guest    8/22/2016

As adoption of wearables becomes more mainstream in the Middle East, it brings added complexity to BYOD in an enterprise. One of the more interesting …

Read More