As an increasing number of organizations approach us seeking strategies to reduce their Oracle support expenses, we have decided to create a comprehensive guide to help you navigate this complex landscape.
The aim of this article is to provide a clear, actionable roadmap to significantly cut down on Oracle support costs while maintaining compliance and optimizing your software licensing.
By following the ten steps outlined in this guide, your organization can achieve substantial savings and ensure that your investments in Oracle technology remain cost-effective and aligned with your business objectives.
- ENSURE COMPLIANCE: Regularly run Oracle Audit scripts on databases, middleware, or applications to identify non-compliance issues, which typically arise from licensing policy misinterpretation or accidental usage. Address these issues proactively rather than waiting for an audit.
- ELIMINATE UNUSED SOFTWARE: Performing step 1 often reveals 25%+ of unused software that can be removed or terminated. For instance, with a 2m € annual Oracle support contract, this could translate to 500,000 € in potential savings.
- SWITCH LICENSE MODELS: Consider changing from processor-based licensing to user-based licensing (Named User Plus) for test and development environments, which can lead to 50% savings. Request Oracle to convert existing processor licenses accordingly.
- CONSIDER THIRD-PARTY SUPPORT: Switching to a third party provider, such can save your company 50% off Oracle support. You will have the right to download any updates or bug fixes released until your support agreement ends. Remember that you can always go back to Oracle support if you need in the future.
- ORACLE CLOUD: Oracle solutions such as OCI and or cloud at customer can offer a transition vehicle for organizations that need security patches and upgrades on some Oracle software. Oracle also have incentive programs offering 25-33% reduction of your support contract if you choose Oracle Cloud.
- NEGOTIATE BETTER CONTRACTS: Many companies haven't optimized their commercial terms with Oracle. Understand market best terms and don't settle for past agreements. Consult colleagues or experts to determine realistic negotiation targets.
- NEGOTIATE ANNUAL SUPPORT RENEWAL: Don't accept "no" for an answer when negotiating annual support renewal. It's possible to remove the 0% uplift without committing to a 3-year term.
- OPTIMIZE INFRASTRUCTURE: Changing server providers for Oracle technology can reduce licensing requirements by up to 50%. Oracle hardware, IBM and are likely to offer the best license optimization platforms.
- DOWNGRADE SOFTWARE: Approximately 50% of companies use the Enterprise edition when the Standard edition would suffice. Investigate the need for the Enterprise edition and, if unnecessary, downgrade or purchase the Standard edition for savings within 12 months.
- CANCEL ORACLE SUPPORT: Consider leaving Oracle support entirely for additional savings. Assess the criticality of systems running Oracle, particularly legacy applications like PeopleSoft or EBS. If a new platform is already planned, cancel Oracle support or switch to third-party support.
Oracle Support Reduction Assessment Service
Our Oracle Support Reduction Assessment Service is designed to help your organization identify areas of potential savings and optimize your Oracle support investments.
Our comprehensive approach combines expert analysis, stakeholder interviews, and a thorough review of your existing Oracle deployments and entitlements to develop a tailored, multi-pronged plan for reducing Oracle support costs. Our team will also provide ongoing support during the execution of the plan to ensure maximum results.
Key elements of our service include:
- Review of existing Oracle deployments: We will perform a detailed analysis of your current Oracle infrastructure, software, and licensing to identify areas for improvement and potential savings.
- Review of Oracle entitlements: Our team will assess your organization's Oracle entitlements to ensure you are utilizing your licenses effectively and are not overspending on unnecessary support.
- Interviews and questionnaires: We will engage with key stakeholders within your organization through interviews and questionnaires to gather essential information and understand your specific requirements, challenges, and objectives.
- Develop a multi-option approach: Our experts will create a customized, multi-faceted plan to reduce Oracle support costs, taking into account various strategies such as licensing model changes, infrastructure optimization, and third-party support.
- Support in execution of the plan: We will provide ongoing guidance and assistance during the implementation of the cost reduction plan, ensuring a smooth transition and maximum savings for your organization.
By leveraging our Oracle Support Reduction Assessment Service, your organization can achieve significant savings and optimize your Oracle investments, enabling you to allocate resources more effectively and focus on your core business objectives.
If you want to know more how we can help your organization, send me a message on LinkedIn or contact us.
