Do you have an imminent requirement to contract with Oracle, whether it is a support renewal due, ULA certification, compliance requirement or a new purchase? The next couple of months present you with an opportunity to get your Oracle house in order and secure the best value from a contract, if it’s negotiated well.
What are the top five points to consider?
1. Point One – begin with YOUR end in mind
2. Point Two – know what the IMPORTANT contract terms are
Terms and conditions in a contract are just as important, if not more so, than the discount. These terms remain in place and govern your contract long after the discount has become a mere memory.
- If you’re negotiating with Oracle for 31 May, have the official contract prepared with plenty of time for substantial review. You don’t want to commit to the sales PowerPoint, and then be rushed into signing without reviewing the terms and conditions. The presentation will not match the contract.
- If you’re migrating to new order forms, ensure you have arranged to carry forward any favourable terms from older contracts.
- Have your legal and commercial team (preferably with expertise in Oracle licensing complexities) on standby to avoid last minute hurdles.
3. Point Three – know your product roadmap strategy
Whether you’re buying new products or adding on products to existing entitlements, do you understand what is included, either as restricted, read-only or full-use programmes/products with your purchase, and does it meet your requirements?
- When negotiating a contract, you need to consider the following examples of inclusions:
- How do you manage future growth, whether organic or through merger or acquisition?
- What if products you have procured change functionality? Do you have a migration strategy term?
- Have you included all users and entities that require access to the licences?
- Investigate the best pricing and usage model for the product(s) you’re purchasing.
4. Point Four – what about your support options?
Although it’s not a well-known fact, you can negotiate better support terms, whether it is an existing support renewal or support for a new purchase. Consider your options:
- Annual support increases can be negotiated.
- Support periods can be aligned across various renewal contracts.
- Support contracts can be combined to make annual renewals easier.
- Could third party support be an option?
- Are there opportunities for cost reduction?
- Consider contractual options for credit towards other services, for example cloud solutions.
- Are you familiar with Oracle’s technical support policies and your options as to how they apply to the products you’re purchasing?
5. Point Five – be assured of your compliance position
Being in control of your negotiations and pushing back can come with the threat of an audit. To ensure that this can’t be used as a negotiation tactic, ask yourself the following questions:
- Do you have all your contracts?
- Do you know what the products, users, metrics, versions, etc, are that you’re using?
- Do you know how to ask for, or obtain copies of your contracts?
- Do you know what is deployed and where across your organisation?
- Do you know whether you’re correctly licensed across your various environments and projects?
- How do you manage your software asset management and the changes that occur regularly with each download or user addition within ICT, procurement or other areas?
- If you’re certifying an Oracle ULA, what is your process for this? Are you doing it yourselves in-house, or with a third party, and if so, are they an Oracle reseller?
Palisade Compliance APAC helps many organisations in Australia, New Zealand, and across the Asia-Pacific region navigate through the complexities of negotiating with Oracle. It’s our business, and we can assist you to get your Oracle house in order.
Get in touch with us today to discuss what you need.