Interesting. I can't know anything more than what you told me, but from your description, I'd say you have a massive case of cluelessness there in your IT department.
"Oracle won't do that!"
The fact is, (assuming it's essentially the same as SQL Server, which I'm sure it is) Oracle won't do anything. It's just a database; that's what it does, stores data. You have to write software to get that data out of it in the format you want. Do you guys even have an in-house IT department?
Sounds like somebody did a baaaaaaaad job of looking at all the factors on this deal. Sorry to see you having such trouble.