I am quite sure that client focused more on "3-tier" database, they never mentioned "tier 3". I designed database for the project, normalized as far as i could (80+ tables, still needs further table breakdown) but my database design got rejected. Another developer from team is supposed to design the database now. The reason my database got rejected - it was not a "3-tier" database.
Yes, I asked what they meant by "3-tier" database but i got replied with the wiki page on multitier architecture[1]. Which is what i am familiar with.
I am really confused with this term, never heard of "3-tier database". Requirements you mentioned match to what the client is expecting (probably 99.9% uptime, up to 1sec latency, things like that). I can't get the work back now but for the sake of clearing confusion I have, I would like to know about "tier 3 database". Could you please share some ideas on what makes a database "tier-3"?
[1]http://en.wikipedia.org/wiki/Multitier_architecture