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Case Study: A Large European Bank And Oracle Agree A Unique Contract Amendment

February 29, 2008

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A large European bank was considering adopting Oracle as its enterprisewide database choice, but its corporate legal policy for software purchases conflicted with Oracle's terms and conditions. Forrester cannot divulge details, for client confidentiality reasons, but the main contractual issue was one that is usually classified as "not up for negotiation." The bank had a firm policy, but Oracle would "never" agree to give way, due to the issue's impact on revenue recognition. However, in this case, the irresistible force of a multimillion-dollar deal shifted the immovable object — the potential deal was so large and the bank's position so resolute that Oracle accepted the bank's new clause, in return for the bank's commitment to a long-term relationship.

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