Small Enterprise SituAction: Negotiating With Oracle

Contract negotiation with major vendors is always painful. Take a strategic approach to negotiating with Oracle on database and application licensing.

Situation: A VP of IT for a state-run communications utility receives a difficult phone call from a colleague in procurement/sourcing. Their Oracle licensing is coming up for renewal and the rep is talking about changes in terms and challenges with grandfathering existing conditions.

Complication: The VP has neither a strategy for negotiating with Oracle nor an understanding of Oracle’s future product strategy. He has to get up to speed quickly.

First, he needs to put in a strategy for negotiating with Oracle.

Recommendations

• Master Contract Review and Negotiate for Software Agreements. The first step is to create a general process for contract review and negotiation for any software vendor. Optimize spend with significant cost savings and negotiate from a position of strength. Relevant Info-Tech templates and tools include:
  • RASCI Chart (Excel)
  • Vendor Communication Management Plan (Word)
  • SaaS TCO Calculator (Excel)
  • Software Terms & Conditions Evaluation Tool (Excel)
  • Software Buyer's Checklist (Word)
  • Controlled Vendor Communications Letter (Word)
  • Contract Negotiation Tactics Playbook (PowerPoint)
• Demystify Oracle Licensing and Optimize Spend. Overspending with Oracle is easier than you think, thanks to the open-access framework coupled with complexity of licensing.
  • Oracle Database Inventory Tool (Excel)
  • Oracle Licensing Purchase Reference Guide (Word)
  • Oracle TCO Calculator (Excel)
  • Oracle Terms & Conditions Evaluation Tool (Excel)
  • Controlled Vendor Communications Letter (Word)
• Explore the Secrets of Oracle Cloud Licensing. Oracle’s licensing for cloud-based products has its own particular quirks and challenges. Learn the essential steps to avoid overspending and minimize compliance risks with Oracle’s commercial cloud licensing model.
  • Oracle Cloud Services Agreement Terms and Conditions Evaluation Tool (Excel)
• Prepare and Defend Against a Software Audit. A mishandled audit can result in financial consequences far more severe than a slap on the wrist. It's important to prepare for the audit before it begins. Be proactive. Attempt to prevent the audit, execute the audit as efficiently as possible, and manage the inevitable follow-ups.
  • Audit Defense Maturity Assessment Tool (Excel)
  • Effective Licensing Position Tool (Excel)
  • Audit Defense Readiness Assessment (Word)
  • Software Audit Launch Email Template (Word)
• Review some of our recent notes and tech briefs that are specifically relevant to Oracle’s current strategy and position:
  • Beware of Free Software Licensing Help From Software Vendors
  • Examining Software Licensing Models
  • Oracle is Replacing Free Java SE Public Support With Paid Subscription Support Offering
  • Does Your Oracle ULA Allow Deployment in the Public Cloud
  • Update on Oracle’s Shift to Subscription Licensing for JAVA
  • AI Fuels ERP Arms Race
  • Oracle’s Cloud Purchase Programs - Good-Bad-Ugly

Bottom Line

Info-Tech’s blueprints and tools are valuable starting points for getting IT leaders up to speed quickly with Oracle licensing and negotiation.

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Want to Know More?

• Review Top Contracts to Level the Playing Field With Key IT Vendors
• Establish a Sustainable Vendor Management Office
• Proactively Identify and Mitigate Vendor Risk
• Manage Your Vendors Before They Manage You