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Oracle lawsuit highlights cloud security and liability concerns

June 14, 2011

Montclair State University’s recent lawsuit against Oracle highlights one of the major fears for potential Oracle cloud computing users — that of data security and liability.

Montclair State is suing Oracle for mismanagement of a failed multimillion-dollar PeopleSoft ERP implementation. One of the New Jersey college’s claims is that Oracle hedged on providing a hosted data center environment in which Montclair could convert its financial data to ready it for PeopleSoft applications. According to Montclair, Oracle wanted the university to sign an amendment that would excuse Oracle from legal liability if Oracle wasn’t able to keep Montclair’s financial data confidential.

“Oracle’s proposed amendment was inconsistent with Oracle’s obligation to maintain the University’s data confidential under the terms of the parties’ existing agreement …” the lawsuit reads. As a result, the university bought more server hardware to do the data conversion in-house, a measure that cost it time and money.

Source Oracle lawsuit highlights cloud security and liability concerns

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