FAQ: Reducing Oracle Support Fees

FAQ: Reducing Oracle Support Fees

1. Is it possible to reduce Oracle support fees?

Yes, but there's no quick fix. It requires effort and time. Many people think they can easily cut 20% off, but it doesn't work that way. You need to put in hard work to achieve results.

2. Can I negotiate my Oracle support renewal?

Yes, you can. Oracle may not make it obvious, but support renewals are negotiable. Many have successfully avoided the annual increase by committing to a 3-year renewal. (Multi-year renewal)

3. What should I tell Oracle if I want to negotiate my support renewal?

Tell them you might leave Oracle or that your budget is limited. Oracle's support reps often have huge targets; your contract might be a tiny fraction of that. Try asking if you can void the 8% annual increase .

4. What can I do if I'm not successful in negotiating?

Look at contractual optimization, such as license assignment, migrations, and third-party support. Optimizing licenses can free up licenses for termination.

5. Can I negotiate a large discount, like 30%, on my support renewal?

No, most likely not. A 30% drop is almost unheard of, especially for technology contracts. It's possible for some applications, but the chances are very low.

6. Can I leverage third-party support providers like Rimini Street in negotiations with Oracle?

Yes, but it often doesn't work. Oracle usually only budges on the annual uplift. However, in some cases, a counteroffer might be made. However, you are often best off by moving to a third-party support provider.

7. What's the most common question about Oracle Support?

Many ask about paying for support on products they don't use. Terminating licenses under the same contract doesn't usually lower support costs due to Oracle's repricing policy.

8. Can I get around repricing and terminating unused licenses?

Yes. One way is to assign the licenses to a divested subsidiary and terminate the support contract. Another is to perform a license migration, which can often be done at no cost. However, Oracle has taken measures to clamp down on this in recent years.

9. Are there other ways to lower support fees?

Best way is to look at third party support, there are many misconceptions on what third party support is. We often guide clients thru this journey and once they realize that the support level is better than what they recieved at Oracle ,they feel comfortable moving to a third party support provider for their Oracle support.

10. Can I negotiate and avoid paying for extended support?

Yes, it's possible. Some clients have negotiated a contract clause in their original agreements to avoid this increase.

11. Will Oracle be upset if I move to a third-party support provider?

No, Oracle generally doesn't care. Support renewals are often handled as back-office tasks, with little personal attention unless you're buying something new. Your normal "account reps" are only compensated on new license sales or cloud consumption.

12. Will Oracle audit us if we move to a third-party support provider?

Sometimes, not always.

13. Why should I review my licensing before moving to third-party support?

You should focus on staying compliant, not just to pass an audit, but to avoid problems when renewing or getting new licenses in the future. We’ve never found any real barriers to moving to third-party support. However, if you plan to switch, ensure you’re compliant first. Almost all compliance issues can be fixed.

14. Which Oracle contracts are usually moved to third-party support?

Usually, application support agreements and legacy systems aren't being updated. If you're transitioning from Oracle Peoplesoft to something like Workday, it might make sense to switch to third-party support. Recently, we have seen customers move their certified Oracle ULAs to third-party support. Ricoh recently moved Oracle EBS and its databases to Rimini Street.

15. What should I do before moving to third-party support?

Start with a compliance review at least three months before your support contract renews. Review your contracts, ensure compliance, and select third-party support providers carefully. I would look not only at the price but also at their customer references and the quality of their support.

16. Can I go back to Oracle Support after leaving?

Yes, you can return at any time. Oracle charges a penalty for reinstating support, but you can avoid this fee with the right negotiation.

17. Can I exchange Oracle application licenses for cloud services?

Oracle has mostly discontinued this option. It's often more cost-effective to negotiate a new cloud services agreement.

18. We used to have an Oracle ULA, but now we're out. How can we reduce support fees?

Your options are limited. You probably need to speak to third-party support vendors. This case study shows someone saving on an Oracle ULA .

19. What if I sign an Oracle PULA? Does the same rule apply?

No, it's even worse. With a PULA, you can never terminate support. Doing so would breach the contract, and you'd lose all licensing entitlements.

20. What's your advice on reducing Oracle support fees?

Start with a compliance review and optimize your licensing. In parallel, you should discuss this with third-party providers, such as Rimini Street. If you want a free consultation about what is possible, please contact us.

We can advise you on what steps your organization should take to achieve results and reduce your Oracle costs.

Get in touch with us today.