Chris Kanaracus at IDG is still doggedly running down enterprise app failures (and the rest of us are better for it!). He's covered the MSU run in with Oracle in the past. Basically a $16M ERP deal from 2009 goes over budget... by about $20M.
MSU claims fraud and a dodgy demo; Oracle claims that it's completely covered by contractual legalese and that the case should be dismissed. Specifically:
- Oracle claimed that PSFT could address 95% of the business requirements but "Attachment C-1 of the Fixed Price Exhibit" clearly lays out what's in scope or not. The "Undefined" requirements appear to be particularly contentious.
- MSU in unhappy about the amount of internal effort it has had to apply... but Oracle's contract "put the onus on MSU, not Oracle" to ensure the scope could be met.
The bottom line, as always, is: read the contract and don't trust the sales guy.
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