- Renewal or Certification of Oracle ULA
- What exactly is an Oracle ULA?
- What are the benefits and drawbacks of an Oracle unlimited license agreement?
- What happens when an Oracle ULA expires?
- What exactly is an Oracle ULA renewal?
- What exactly is an Oracle ULA certification?
- Pricing for Oracle ULA
- Oracle ULA issues
- Oracle ULA in the Public Cloud
- ULA issues and solutions
- 1. Issues arising from the deployment of Oracle software that is not covered by your ULA contract.
- 2. Oracle ULA issues caused by running software on servers in countries not covered by your territory contract.
- 3. ULA issues arising from subsidiaries not included in your customer definition
- 4. Issues resulting from the Oracle audit at the end
- 5. Issues with including products that you do not use
- 6. Oracle ULA issues resulting from mergers and acquisitions
- Frequently asked about ULAs
- What exactly is an Oracle ULA?
Renewal or Certification of Oracle ULA
What exactly is an Oracle ULA?
An Oracle ULA is a licensing agreement provided by Oracle Corporation. It allows customers to use a wide range of Oracle products for an unlimited number of users for a set period of time, typically three to five years. This type of agreement is typically used by large organizations that use Oracle products extensively and want to avoid the complexity and potential additional costs associated with purchasing licenses on a per-user or per-use basis. Typically, the agreement includes access to Oracle’s technical support and software updates for the duration of the agreement.
What are the benefits and drawbacks of an Oracle unlimited license agreement?
The main benefit of an Oracle Unlimited License Agreement (ULA) is that it allows customers to use a wide range of Oracle products for an unlimited number of users for a set period of time, typically three to five years. This can be advantageous for large organizations that use Oracle products frequently, as it can save them the complexity and potential additional costs of purchasing licenses on a per-user or per-use basis. During the term of the agreement, the agreement typically includes access to Oracle’s technical support and software updates.
An Oracle ULA may require a significant upfront financial commitment because the customer must pay for the right to use the Oracle products for the duration of the agreement. This can be a significant expense, especially for organizations that do not clearly understand their future Oracle product needs and usage. Furthermore, the agreement may not allow for product flexibility, so the customer may end up paying for access to products they do not use. Finally, if the customer’s needs or usage of Oracle products changes during the agreement term, the terms of the agreement may be difficult to adjust to reflect those changes.
What happens when an Oracle ULA expires?
When an Oracle Unlimited License Agreement (ULA) expires, the organization can no longer use the Oracle software covered by the agreement unless the agreement is renewed or new licenses are purchased.
An Oracle ULA is a long-term contract that allows a company to use Oracle software indefinitely for a set period, usually three to five years. The organization can renew the ULA for an additional period at the end of the term. Suppose the organization chooses not to renew the ULA or cannot. In that case, they must either discontinue the Oracle software covered by the ULA or purchase new licenses to continue using it.
Organizations must plan time and budget for the expiration of their Oracle ULA. Before the ULA expires, the organization should assess its current and projected Oracle software usage, as well as the ULA’s terms and fees, to determine whether renewing the ULA or purchasing new licenses is the more cost-effective option. If the organization decides to buy new licenses, it should give itself enough time to negotiate the terms and complete the process before the ULA expires.
What exactly is an Oracle ULA renewal?
The process of continuing to use Oracle software under the terms of an existing Unlimited License Agreement (ULA) after the initial term of the agreement has expired is known as renewal. Oracle ULAs are long-term contracts that grant organizations unlimited access to Oracle software for a set period, typically three to five years. The organization can renew the ULA for an additional period at the end of the initial term.
During the renewal process, the organization will negotiate the renewal terms with Oracle, including the length of the renewal period, renewal fees, and any changes to the agreement’s terms. The organization will also need to review and update its Oracle software inventory to ensure compliance with the terms of the ULA.
Organizations must consider their needs and budget when deciding whether to renew a ULA. Renewal of an Oracle ULA can result in long-term cost savings and flexibility, but it may also necessitate a significant initial investment.
What exactly is an Oracle ULA certification?
Verifying that an organization is using Oracle software by the terms of an Unlimited License Agreement (ULA) is known as certification. Oracle ULAs are long-term contracts that grant organizations unlimited access to Oracle software for a set period, typically three to five years. Oracle requires organizations to keep accurate records of their Oracle software usage and to undergo periodic audits to ensure compliance with the terms of the agreement as part of the ULA.
Typically, the Oracle ULA certification process entails providing Oracle with detailed information about its Oracle software usage, such as the number and types of Oracle licenses deployed, the servers and devices on which the software is installed, and the users with access to it. Oracle may also request access to the organization’s network and systems to validate the information provided.
If the organization is found to follow the terms of the ULA, an Oracle ULA certification will be issued. If the organization is found to be non-compliant, it may be required to purchase additional licenses or pay fees to bring its Oracle software usage in line with the ULA.
Pricing for Oracle ULA
The cost of an Oracle Unlimited License Agreement (ULA) is determined by several factors, including the Oracle products and options included in the agreement, the length of the ULA term, and the organization’s specific needs and requirements.
Oracle ULAs are typically priced per processor, with discounts offered for higher processor counts. The precise cost will be determined by the Oracle products and options included in the agreement and the number of processors covered by the ULA.
Oracle Unlimited agreements may include fees for support and maintenance, training, and other services in addition to the per-processor fees. Fees for any additional licenses or options added to the ULA during the agreement term may also be imposed on the organization.
When negotiating the terms of an Oracle ULA, organizations must carefully consider their needs and budget. While ULAs can provide long-term cost savings and flexibility, they may also necessitate a substantial initial investment. To determine if a ULA is the right fit for their needs, organizations should examine their current and projected Oracle software usage, as well as the terms and fees of the ULA.
Oracle ULA issues
Oracle customers may be dissatisfied with their Unlimited License Agreement for a variety of reasons (ULA). Some of the most common complaints about Unlimited agreements are as follows:
Oracle ULAs typically require a significant upfront investment, which can be financially burdensome for some organizations.
Long-term commitment: ULAs are typically three to five-year contracts, which can be problematic for organizations that need to change their software usage patterns or upgrade to new versions of Oracle software during the term of the ULA.
The agreement’s level of complexity: Oracle ULA terms and conditions can be complex, and organizations may not fully comprehend them when they enter into the agreement. This can lead to misunderstandings and disagreements about the ULA’s term.
Terms that are rigid and inflexible: ULA terms can be rigid, preventing changes in the organization’s software usage patterns or upgrades to new versions of Oracle software.
Audits and compliance: Oracle ULAs require organizations to undergo periodic audits to ensure agreement compliance. Some customers may find the audit process burdensome, or they may disagree with the audit results.
Overall, when deciding whether to enter into an ULA, organizations must carefully consider their needs and budget. While ULAs can provide long-term cost savings and flexibility, they are not for every organization and may not be the best fit.
Oracle ULA in the Public Cloud
Oracle software can be used in a public cloud environment by an organization that has an Oracle Unlimited License Agreement (ULA). When using Oracle software in the cloud under a ULA, there are a few things to keep in mind:
Compliance with the ULA: The organization must ensure that its use of Oracle software in the cloud adheres to the terms of the ULA. This could include tracking the number of Oracle licenses deployed in the cloud as well as the servers and devices where the software is installed. Terms of service for a cloud provider: The organization must also consider the cloud provider’s terms of service and ensure that their use of Oracle software in the cloud is consistent with those terms.
Some Oracle ULAs include license mobility provisions, which allow organizations to move their Oracle licenses between on-premises and cloud environments without incurring additional fees. However, not all ULAs include this clause, and the organization may be required to purchase additional licenses or pay fees in order to use Oracle software in the cloud.
Organizations must carefully review the terms of their ULA as well as the cloud provider’s terms of service to ensure that they are using Oracle software in the cloud in a compliant and cost-effective manner.
ULA issues and solutions
1. Issues arising from the deployment of Oracle software that is not covered by your ULA contract.
The ULA frequently encounters compliance issues. In many cases, this is due to the deployment of products that were not included in the ULA. When an Oracle customer certifies their Oracle ULA, the deployments are discovered.
Running Oracle LMS scripts and having an independent Oracle licensing expert review the results before sharing data will put you in a better position, according to Oracle.
It is not uncommon to have restrictions on where you can physically deploy your Oracle ULA software on servers. If you run servers in Poland and only have US territory rights, you must purchase licenses for those servers.
When you enter the Oracle ULA, request worldwide territory rights.
3. ULA issues arising from subsidiaries not included in your customer definition
All Oracle ULAs include a list of subsidiaries that are part of your customer definition. You cannot use Oracle ULA software if your name is not on the list. This list will evolve over time as new subsidiaries are acquired, or you may have overlooked including all legal entities when entering the Oracle ULA.
During the lifecycle of the Oracle ULA agreement, make sure to negotiate the terms and conditions, as well as the right to add subsidiaries to the list.
4. Issues resulting from the Oracle audit at the end
Your Oracle ULA will be terminated with an Oracle license audit. Oracle will not say it, but that is exactly what it is. Oracle will use the same people (auditors), tools (Oracle license audit scripts), and processes as before. They do this because they frequently discover non-ULA software deployments, which often necessitates a costly ULA renewal.
As part of the certification planning, conduct your own internal audit, using Oracle audit scripts, and have an independent Oracle license expert analyze the results before sharing the data with Oracle.
5. Issues with including products that you do not use
In the ULA, only select the products you require. If you add products that you do not use, you will be locked in with no way to change the cost of support on those products.
Conduct an internal Oracle licensing review without the involvement of Oracle auditors.
6. Oracle ULA issues resulting from mergers and acquisitions
Oracle ULAs are frequently purchased by large companies that are constantly changing due to new companies being acquired or leaving the company group. However, if you make any changes to who is using the ULA software during the ULA, it must be documented in the ULA contract. This is frequently overlooked, or you may have forgotten to negotiate the proper terms for subsidiaries joining the company group.
Frequently asked about ULAs
Will my support costs rise once the ULA expires?
No, it will not grow. During your agreement, you should deploy as much ULA software as possible. There is no penalty if you leave your ULA with 5,000 processors. The level of assistance will remain the same as it was during the agreement. There are two exceptions: If you are using an older version of Oracle software, you may be required to pay an additional 10-20% in support due to extended support. You will also face a 4% year over year increase in technical support.
How does ULA certification interact with the cloud?
Older agreements did not allow you to count any public cloud deployments at all. For example, if 50% of your deployments were in AWS or Azure, those deployments would not count towards your exit number. This is a significant financial risk. There is now a standard clause in new versions of the ULA that allows you to count an average deployment over a 12-month period. The new clause also carries risk if the contract is not planned and managed properly.
Can I run Oracle on VMware while under a ULA?
Yes, because you’ll be able to count all physical hosts in all VMware environments.
Do your organization have an Oracle ULA and are unsure if you want to undergo ULA certification or renewal? We can help you with an Oracle ULA exit and a renewal. Reach out to our team to discuss how we can help.