Oracle Cloud Contracts

It is the first Oracle cloud contracts where organizations have the most leverage to negotiate better terms for their organization. We find that in renewal scenarios, Oracle is very inflexible and is not willing to change much, if any, time.

An executive summary:

• Oracle cloud contracts consist of two primary documents: the Cloud Services Agreement (CSA) and the Cloud Ordering Document.
• The CSA covers a wide range of topics related to Oracle cloud services, including payments, ownership rights, data protection, and liability.
• The Cloud Ordering Document pertains to specific cloud services purchased from Oracle and includes details on services, quantities, pricing, and special terms.
• Licensing and cloud services definitions, as well as Oracle Cloud hosting and delivery policies, are not covered in Oracle cloud contracts.
• It is important to carefully review and prepare before negotiating Oracle Cloud terms, as the CSA will be in effect for five years, and the ordering document can impact the flexibility and cost of your cloud services.

Oracle Cloud Contracts – A long answer

If your organization is considering using Oracle cloud services, it is important to understand the terms and conditions outlined in Oracle cloud contracts. These contracts, which consist of the Cloud Services Agreement (CSA) and the Cloud Ordering Document, outline the rights and responsibilities of both your organization and Oracle in regard to the use of Oracle cloud services. In this article, we will provide a high-level overview of the key elements of Oracle cloud contracts and explain why it is important to carefully review and negotiate these documents before signing. By understanding the terms of Oracle cloud contracts, you can ensure that your organization is protected and positioned for success in the cloud.

Oracle CSA

Oracle cloud contracts consist of two main documents: the Cloud Services Agreement (CSA) and the Cloud Ordering Document.

The CSA is a document that outlines the terms of your agreement with Oracle regarding the use of Oracle cloud services. It covers the following topics:

• The legal entity that has the right to use the cloud services.
• Payments to Oracle and management of over-usage.
• Ownership rights and restrictions (e.g., you own your data, Oracle owns its IP).
• Non-disclosure clause.
• How Oracle protects, manages, and stores your data.
• Disclaimer of service disruptions.
• Liability and indemnification.
• Term and termination clause (if the CSA is terminated, Oracle will make your data available for 60 days).
• Force majeure.
• Governing law and jurisdiction.
• Assignment (you may not assign your cloud services to another legal entity).

Oracle Cloud Ordering Document

The Cloud Ordering Document pertains to specific cloud services purchased from Oracle and includes:

• The names of the cloud services that you can use.
• The quantities or values that you can consume/utilize.
• Special terms that grant or restrict your cloud usage.
• Price protection, renewal pricing, and price hold.

Items not covered in Oracle cloud contracts include:

• Licensing and cloud services definitions.
• Oracle Cloud hosting and delivery policies.

If you do not already have existing Oracle CSA and Cloud agreements with Oracle, it is important to carefully review and prepare before negotiating your Oracle Cloud terms. This will help you set the baseline for future cloud purchases. If you are unsuccessful in your first cloud negotiation, it may be more difficult to negotiate better terms for renewals or additional purchases.

Frequently asked about Oracle Cloud Contracts.

1. What are the main components of Oracle cloud contracts? Oracle cloud contracts consist of the Cloud Services Agreement (CSA) and the Cloud Ordering Document. The CSA covers a wide range of topics related to the use of Oracle cloud services, including payments, ownership rights, data protection, and liability. The Cloud Ordering Document pertains to specific cloud services purchased from Oracle and includes details on services, quantities, pricing, and special terms.
2. What is covered in the Cloud Services Agreement (CSA)? The CSA covers the following topics: which legal entity has the right to use the cloud services, payments to Oracle and management of over-usage, ownership rights and restrictions, non-disclosure clause, data protection and management, disclaimer of service disruptions, liability, and indemnification, term, and termination clause, force majeure, governing law and jurisdiction, and assignment.
3. What is covered in the Cloud Ordering Document? The Cloud Ordering Document includes the names of the cloud services that you can use, the quantities or values that you can consume/utilize, special terms that grant or restrict your cloud usage, price protections, renewal pricing, and price holds.
4. What is not covered in Oracle cloud contracts? Licensing and cloud services definitions, as well as Oracle Cloud hosting and delivery policies, are not covered in Oracle cloud contracts.
5. Why is it important to carefully review and negotiate Oracle cloud contracts? The CSA will be in effect for five years, and the ordering document can impact the flexibility and cost of your cloud services. By carefully reviewing and negotiating these documents, you can ensure that your organization is protected and positioned for success in the cloud.

Do you want expert help?

Our Oracle Cloud Negotiation service helps clients design the optimal cloud service for their needs, optimize their cloud licenses, review and negotiate their cloud contracts, and provide benchmarking and negotiation support to ensure they get the best possible terms.

As part of the design phase, we work with clients to understand their specific requirements and help them design a cloud service that meets their needs. We then assist with optimizing their cloud licenses to ensure they are getting the most value for their investment.

During the contract review phase, we thoroughly review the cloud contract to ensure it meets the client’s needs and includes any necessary non-standard concessions. We also share our knowledge of industry standards and benchmark the contract against similar agreements to ensure our clients are getting a fair deal.

Finally, we provide negotiation support to help clients secure the best possible terms, including favorable discounts. Our goal is to help clients achieve their desired outcomes and get the most value from their Oracle cloud services.