It has not been announced, but Oracle is increasing support for their on premise customers by 8% for support renewals that are renewed after 1st of December 2020.
The basis of their increase can be found in Oracle technical support policies, which every Oracle customer have accepted. In your Oracle licensing agreements there is a hyperlink to Oracle support policies, which says Oracle have the right to annually increase the support fees based on inflationary rates. This year rate is 8%.
Considering Oracle already has 90% margin on their support business, you may think Oracle is taking advantage of the worldwide price increases. But I dont want to bash Oracle and instead focus on what you can do to avoid the increase or save money on your Oracle support renewal.
- Move to a third party support provider, thousands of customers have already moved to a third party support provider. You will save 50-70% on what you are paying to Oracle today. Even more if you have unused software that you do not need support for. The only got-cha is that you will not have access to new releases of Oracle software and or support.
- Negotiate with Oracle, with the right negotiation strategy you can negotiate away the annual increase and perhaps even a overall reduction on your Oracle support bill.
- Oracle Cloud - If you are using Oracle cloud you can take advantage of their Oracle support rewards program which allows you to reduce your support costs by 25% for every dollar you spend on Oracle OCI (and consume)
- License optimization - I estimate based on the clients that I help that 30% of all your Oracle software licenses either are unused or can be optimized. Review your licensing then perform a license optimization to free up the unused licenses. Then target them for termination. (Yes, Oracle have rules preventing you to terminate unused licenses but there are work-arounds around this issue)
- Stop paying maintenance - You may choose to leave Oracle all together, then you save 100% of your maintenance fees. This may only be a choice for Oracle customers that are already migrating away from Oracle and have 1-2 years left until the migration is completed.
- Move to Oracle Cloud at Customer - This is a rented server that has a license model "consumption based" which means you can run any Oracle software on it and you pay for the hours you run Oracle. There are business cases that are built upon the cost of the Oracle cloud at customer solution vs 3-5 years of Oracle support. That Oracle cloud at customer will in the long run lower your costs for Oracle. In simple terms you invest in a Oracle cloud at customer solution and then you terminate your on premise support.
I hope this helps, if anyone want help reducing Oracle support fees we have different service models where we charge fixed fee or only "no cure no pay" basis. Contact us at [email protected] if you want to discuss how Redress Compliance can help you reduce your Oracle spend and also avoid the Oracle support increase.
Market Researcher | Consulting
2 年Hello Fedrick, are you referring the price increase to the Oracle ERP or every product (including MES)?
Expertise Licensing Apps&Tech Oracle - Revue de licences - Optimisation et Réduction Flux Support - Acquisition de licences seconde main
2 年Une des options estime à 30% les licences non utilisées....mes missions récentes ont démontré aussi la non conformité des licences tech et apps, dans 90% des cas ! Alors n'attendez pas pour engager une mission de quelques jours avant de vous faire prendre par un audit e l'éditeur .?