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Oracle appeals to court to cancel results of Nimbus cloud tender

Oracle appeals to court to cancel results of Nimbus cloud tender

The company has requested from the District Court in Jerusalem to cancel the government's selection of AWS and Google as the winners of the $1.2 billion project to provide cloud services for the country's public sector and military

Meir Orbach | 20:26  11.07.2021
Oracle filed a petition with the Jerusalem District Court in its sitting as the Administrative Court on Sunday, appealing against the Israeli government's decisions in the Nimbus cloud tender. The government announced in April that it had chosen Amazon Web Services (AWS) and Google for the $1.2 billion project to provide cloud services for the country's public sector and military. However, Oracle appealed to the court demanding the cancelation of the decision to reject its application even before the financial examination stage. Oracle CEO Safra Catz visited Israel last week and didn't disguise her displeasure from the results of the tender, claiming that the Ministry of Finance mustn't have had all the information when it made its decision.

Oracle also asked the court to rule that AWS's application be canceled as it was filed too late and included a disclaimer, which wasn’t permitted in the tender. Oracle requested that the court cancel the results of the tender and order the ministry to either conduct a reexamination of the financial stage or alternatively cancel the tender completely.

Oracle CEO Safra Catz. Photo: Ezra Levy Oracle CEO Safra Catz. Photo: Ezra Levy Oracle CEO Safra Catz. Photo: Ezra Levy

According to Oracle's petition, AWS included a disclaimer in its tender application according to which it can change its offer should there be any change in the services the company offers. AWS was the biggest winner of the tender and according to this disclaimer, it could legally demand to make significant changes to its offering.

An extreme example of this would be a demand by AWS employees to make changes to the agreement with Israel. During the recent escalation between Israel and Gaza, employees at AWS, as well as Google, sent petitions to management demanding that their companies disassociate themselves with Israel. A group of more than 500 Amazon workers signed an internal letter in May asking to support Palestinians.

The four phases of the Nimbus project include acquisition and construction of cloud infrastructure, formulating government policy for migrating to the cloud, integration and migration, and control and optimization of cloud activity.

Oracle said in response: "Oracle is committed to supporting the State of Israel. We will continue to work to ensure that the government of Israel will have access to the most secure, reliable and advanced cloud computing technology."
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