OuterBay and EMC
The case details the challenges OuterBay faced with respect to its decision to pursue an OEM deal with a very large and well established technology company, EMC. It begins with a description of both companies’ businesses, the history of their relationship and the initial discussion surrounding an OEM deal. Next, the case details the particular issues that surfaced in the ensuing negotiation, including questions around revenue sharing, term limits, exclusivity, and account control. Negotiations dragged on over several months and the two companies exchanged 14 versions of the LOI. At the conclusion of the case, OuterBay’s CEO, Michael Howard is wondering whether the deal will make or break the company.