Negotiating an Oracle license agreement:
Oracle negotiations are famous for being tough, as Oracle is one of the software vendors that most organizations feel are difficult to negotiate with. This is in part because discounts vary from 0-99% discount and each contract is different from the other. Compare this to other vendors where discounting is transparent and few items are negotiable in the vendor contracts. This however opens up opportunities for customers who have the right knowledge and expertise to get better deals with Oracle than other companies would.
10 tips for negotiating Oracle software license agreement
- Understand your organization’s needs: Before you start negotiating, it’s important to have a clear understanding of your organization’s needs and how Oracle’s products and services can meet those needs. This will help you determine the scope of the license agreement and ensure that you are getting the most value for your money. Only buy what you need.
- Research Oracle’s pricing: Oracle is known for its high prices, so it’s important to do your research and understand the company’s pricing model before negotiating. Look at the list prices for the products and services you are interested in, as well as any discounts or promotions that may be available. An experienced Oracle license expert will be able to share what realistic discounts you can achieve.
- Consider alternative solutions: Oracle is just one option among many for enterprise software. Before entering negotiations, consider whether there are other solutions that might meet your needs at a lower cost. If you have a non-Oracle alternative, you may reach the highest discounts from Oracle.
- Negotiate from a position of strength: You are more likely to get a better deal if you come to the negotiating table with a strong understanding of your organization’s needs and alternative solutions. You should also have a clear idea of your budget and be prepared to walk away if the deal is not favorable. You should never reveal to Oracle that you intend to buy their products. Always have a competitive solution in order to make Oracle grant you higher discounts and better terms.
- Use a third-party negotiator: If you don’t have experience negotiating with Oracle or if you feel overwhelmed by the process, consider using a third-party negotiator. These professionals have experience working with Oracle and can help you get a better deal. Oracle sales reps negotiate hundreds of license deals; your IT procurement may negotiate one every 2-3 years. Level the playing field.
- Negotiate the terms of the agreement: The terms of the agreement are just as important as the price. Make sure to negotiate terms that are favorable to your organization, such as shorter contract lengths and more flexible terms for upgrades and renewals. Oracle contracts are highly customized, and most of the favorable terms are not in the standard agreements. You should use an external expert who can share which non-standard terms you can request from Oracle.
- Understand Oracle’s licensing policies: Oracle has complex licensing policies that can be difficult to navigate. Make sure to fully understand these policies before entering into a license agreement, as they can have a significant impact on the overall cost of the deal.
- Review the agreement carefully: Before signing the agreement, review it carefully to make sure that it meets your organization’s needs and that the terms are favorable. Don’t be afraid to ask for clarification on any points that are unclear or to negotiate for changes if necessary.
- Get everything in writing: Make sure to get all verbal agreements and promises in writing so that there is a clear record of what was agreed upon.
- Seek legal counsel: It’s always a good idea to seek legal counsel before entering into any major business agreement. A lawyer can help you review the agreement and ensure that it is fair and in the best interests of your organization.
Oracle license negotiation service helps organizations get the best deal on their Oracle software and services:
- Experienced team of negotiators with extensive knowledge of Oracle’s pricing and licensing policies
- Service includes understanding the organization’s needs, researching Oracle pricing, and exploring alternative solutions.
- Negotiates the most favorable terms possible, including shorter contract lengths and more flexible terms for upgrades and renewals
- Reviews the agreement to ensure it is fair and in the best interests of the organization
- Can save time and money by ensuring the best deal on Oracle software and services