CIO Playbook: Transition from Oracle On-Premise Applications to Oracle Fusion Cloud
Global enterprises running Oracle E-Business Suite (EBS), JD Edwards (JDE), or PeopleSoft are increasingly evaluating a move to Oracle Fusion Cloud Applications (Oracle’s SaaS suite).
This strategic playbook guides CIOs in navigating the transition. It covers Oracle’s shift to the cloud, licensing fundamentals, conversion of existing licenses, subscription pricing, cost avoidance strategies during migration, negotiation tips, and recommended next steps. The goal is to help CIOs execute a cloud transition with minimal risk, optimized cost, and maximum strategic value.
Background: Oracle’s Journey to Fusion Cloud
Oracle’s enterprise application portfolio has evolved from on-premises suites (EBS, JDE, PeopleSoft) to a unified, cloud-based solution set. Over the past decade, Oracle invested heavily in Oracle Fusion Cloud Applications, a comprehensive SaaS suite for ERP, HCM, CRM, and more. This transition was driven by customer demand for lower IT overhead, faster innovation cycles, and modern user experiences.
Importantly, Oracle continues to support its on-premise customers. Premier Support for EBS, JDE, and PeopleSoft has been extended to at least 2035, giving organizations a lengthy runway to plan their cloud strategy.
In other words, enterprises are not forced off legacy systems in the short term. Oracle delivers regulatory updates and periodic enhancements to these on-premise products, ensuring they remain viable while customers prepare for the cloud.
However, the trend is clear: a growing number of Oracle customers are moving to Fusion Cloud to benefit from subscription-based applications running on Oracle’s constantly updated, scalable cloud infrastructureoracle.com. CIOs should understand Oracle’s cloud vision and product roadmap to align their enterprise applications strategy accordingly.
Oracle Licensing Basics: On-Premises vs. SaaS
For those less familiar with Oracle’s licensing, it’s crucial to grasp the fundamental differences between the traditional on-premises model and the Software-as-a-Service model:
- On-Premises License Model: Oracle’s on-prem applications like EBS, JDE, and PeopleSoft are sold via perpetual licenses. Customers typically pay a large upfront license fee per user or processor, then annual support/maintenance fees (around 20–22% of the license cost) for ongoing support and updates. The perpetual license allows indefinite use of the software version owned. Support fees provide access to patches, upgrades, and Oracle support services. (If customers stop paying support, they can still use the software as-is but lose access to updates and support.) On-prem licenses are often tied to specific modules or user counts and governed by complex metrics and policies. For example, Oracle requires that all licenses in a license set have the same support status – you generally cannot drop support on a subset without penalty.
- Oracle Fusion Cloud (SaaS) Model: Fusion Applications are subscription-based SaaS services. Instead of purchasing a perpetual license, customers subscribe to the software, usually on a per-user-per-month (or per-employee) basis. The subscription fee includes all technical support, maintenance, and automatic updates Oracle handles. In other words, the traditional license and support costs are bundled into one recurring fee. You don’t own the software outright; you lease it for the subscription term. Oracle’s cloud updates are applied quarterly to all customers, reducing the need for major upgrade projects. This model shifts ERP spending from a capital expense (CapEx) to an operating expense (OpEx).
Key Implication: When transitioning to SaaS, an organization will move from a perpetual license + maintenance cost structure to an all-in subscription cost structure. CIOs must anticipate how this impacts IT budgets (e.g., potential short-term overlap of costs and longer-term total cost of ownership) and adjust financial planning accordingly.
Key Licensing Considerations During Transition
Migrating mission-critical systems from on-premise to SaaS requires careful planning to avoid licensing pitfalls.
Key considerations include:
- Dual Use and Transition Period: Oracle generally allows a grace period for dual use of on-premises and cloud services during migration. For example, on-premise ERP licenses can run concurrently for up to 100 days while you transition to Oracle Cloud. This window ensures business continuity – you can keep the legacy system running in parallel until the new Fusion Cloud system is live. After the agreed period (e.g., 100 days), the expectation is that you “shelve” (stop using) the on-premises software for production use. CIOs must time the migration carefully: ensure the new cloud solution is fully operational within this window to remain compliant and avoid extended double usage that violates licensing terms.
- License Parallelism and Compliance: During the overlap period, maintain compliance on both environments. Keep your on-prem licenses active (with support paid) until cutover or explicitly negotiate a different arrangement with Oracle. It’s important to have documentation from Oracle allowing concurrent use during migration to protect against compliance issues. Oracle’s Global Licensing and Advisory Services (GLAS) can assist in mapping out what is permitted during the transition to avoid any gray areas.
- Mapping Users and Usage: Evaluate how your licensed metrics translate to the cloud. The number of users in your on-prem system and how they use it will determine your SaaS subscription needs. In many cases, Oracle Fusion Cloud uses a “Hosted Named User” metric – essentially, named users subscribed to each cloud service. Ensure you size the cloud subscriptions correctly: for instance, if you have 500 employees using PeopleSoft HR, you may need a comparable number of Oracle HCM Cloud user subscriptions (or an equivalent employee count subscription). Some Oracle Cloud modules are licensed based on employee count, revenue, or other metrics instead of pure named users – verify the metric for each cloud service (ERP, HCM, SCM, etc.) and understand how it compares to your current licensing. Misalignment here could lead to over-licensing (unneeded subscriptions) or under-licensing.
- Customizations and Add-ons: Identify any custom modules or third-party integrations in your on-prem environment. Customizations do not carry a license cost, but replicating their functionality in the cloud may require additional Oracle PaaS services or third-party tools (with their subscriptions). This isn’t a licensing cost per se, but it is a cost consideration during transition that CIOs should factor into the overall migration plan. Likewise, non-production environments in the cloud (for development, testing, training) might incur additional subscription costs if beyond what Oracle includes. Clarify how many environments come with your cloud subscription and if extra environments/users (for testing or backup) need licensing.
- Data Access and Archival: You may retain the old system for historical reference or compliance archive purposes after migrating. You can keep the software installed and access your data with a perpetual license. To avoid incurring ongoing fees, you might terminate support on the old system post-migration (since it’s no longer in active use). Ensure that any read-only or archival use of the on-prem system is addressed in your plan. Typically, using the software in a read-only capacity for internal purposes is allowed under your perpetual license, but check with Oracle if unsure. If you may ever need to revert or maintain a parallel system for a longer term, consider “shelving” those licenses (keeping them available but not actively used in production) instead of fully terminating them.
In summary, understand Oracle’s policies for cloud transitions and document everything. Engaging Oracle’s licensing specialists or an independent licensing advisor before you start migrating can clarify these considerations. This prevents surprises, such as an Oracle audit or unbudgeted fees during your transformation.
Converting On-Premises Licenses to Oracle SaaS Credits
CIOs ask: “What happens to our existing EBS/PeopleSoft/JDE licenses and the money we’ve invested? Can we get credit when moving to Oracle Cloud?”
The answer is that while you cannot directly “port” an on-prem license to SaaS (since it’s a different delivery and licensing model), Oracle offers programs to leverage your existing investments as you transition.
Oracle’s official Customer 2 Cloud program allows customers to “redirect” their on-prem license spend into cloud subscriptions. In practice, Oracle will credit some of your support fees toward the Oracle Fusion Cloud subscription of equivalent functionality.
For example, suppose you are paying $500,000/year in support for PeopleSoft HR. In that case, Oracle might allow that expense to be applied toward the cost of an Oracle HCM Cloud subscription, effectively letting you use your support budget to fund the new SaaS.
You would stop paying support for PeopleSoft (or reduce it as modules move), and instead commit to a multiyear Oracle Cloud subscription contract. This program is open to customers across Oracle’s application stack (ERP, EPM, HCM, CRM) moving to the cloud.
Key points about converting licenses:
- Support Fee as Cloud Credit: In license conversions, typically, it’s the annual support fees on your existing licenses that carry negotiating value, not the sunk cost of the original licenses. Oracle’s logic is that you’ve already capitalized the license purchase; what remains is your ongoing spend. Oracle wants to keep that ongoing spend in-house (rather than you possibly discontinuing support or moving to a third-party vendor), so they are willing to apply it toward their cloud services. As industry analysts have noted, Oracle will aim to at least maintain its revenue – don’t expect it to reduce your yearly spend after moving to the cloud, but rather to repurpose it in a way that delivers more value. In fact, by converting unused on-prem licenses/support into cloud subscriptions for products you will actively use, the value your organization gets from that spend increases.
- License “Trade-In” or Swap: In some cases, Oracle might allow a license trade-in: you retire certain on-prem licenses in exchange for a discount on the cloud subscription. This is usually done within the same product family (e.g., swapping Oracle EBS Financials licenses for Oracle ERP Cloud Financials subscriptions). The Customer 2 Cloud program explicitly supports moving within product families to the modern equivalent. Be aware that this is a negotiated process, not an automatic entitlement. It requires working with Oracle Sales to structure a deal. The outcome might be structured as a reduced cloud subscription price, discounted migration services, or a period of free dual use.
- Unused Licenses (Shelfware): Many organizations have shelfware – on-premise licenses for modules or users that are no longer used. Before cloud migration, audit your license usage. If there are licenses you’re not using, they represent wasted support dollars. Oracle may permit you to terminate support on truly unused licenses (to reallocate budget to cloud), or better, trade them as part of the cloud deal. For instance, you might have a module like Oracle Advanced Procurement licensed on EBS that your company never fully implemented; rather than continuing to pay support on it, you could drop it and redirect that spend to the cloud subscription you do need. Oracle historically enforces penalties for dropping support (to discourage partial cancellations), but those rules can be waived in a mutually beneficial cloud migration agreement. Expect to negotiate which licenses are being sunset and ensure Oracle agrees to let you discontinue their support without penalty as you sign onto the new cloud contract.
In summary, yes, your existing investments have leverage – use them. Engage Oracle early about conversion programs and do an internal inventory of licenses and support costs. This will strengthen your ability to secure credits or discounts when moving to Fusion Cloud.
Oracle SaaS Subscription Pricing Model
Moving to Oracle Fusion Cloud will involve a new pricing model. CIOs should familiarize themselves with how Oracle prices its Cloud Applications to budget accurately and avoid surprises:
- Per-User Subscription: The primary metric for Oracle Cloud Applications is a per-user subscription (often called Hosted Named User). You subscribe for a certain number of named users for each Oracle Cloud module (ERP, HCM, etc.) monthly or annually. Oracle publishes list prices for these; for example, Oracle ERP Cloud is often cited at around $625 per user per month for enterprise-level packages, with a minimum of 10 users to start. (Prices vary by module: a core financials user might be priced differently than a procurement or supply chain planning user. HCM modules might be priced per employee or per core HR user, etc.) Enterprise deals rarely pay full list price – significant discounts are negotiable based on volume and deal size.
- Bundled Suite vs. Modules: Oracle Fusion Cloud is modular. You can subscribe to the full ERP suite or individual modules (e.g. Financials, Procurement, Project Management) as needed. Add-on modules come at an additional cost. A CIO needs to carefully select which cloud services to subscribe to, mapping them to the functionality currently on-premises. Unnecessary modules should be excluded to control costs. Oracle’s sales reps might propose bundles with many capabilities; ensure you’re not paying for features your organization won’t use immediately. Remember, you can often add modules or users later, so it’s wise to start with what you need and scale up as required.
- All-Inclusive of Support: The subscription fee covers everything – software usage, infrastructure, support, and updates. This means there is no separate maintenance line item as you have in on-prem budgets. The benefit is predictability and simplicity (one fee per user), ensuring you always have the latest version. However, subscription fees can increase over time (typically at renewal), whereas on-prem support fees historically have small annual uplifts. It’s crucial to negotiate caps on those increases (more on that in the negotiation section).
- Multi-Year Contracts: Oracle SaaS subscriptions are sold as multi-year agreements (commonly 3 years, sometimes 5 years). You commit to a certain number of users for the term. Payments are often made in advance annually (though Oracle may have financing options to spread payments). Longer terms can secure better discounts, but be cautious about committing too far out without flexibility (in case your user counts or business needs change).
- Growth and Flexibility: Consider future growth – if you expect to add more users or modules in the next few years, negotiate pricing for those additions now. Oracle can include price hold clauses that lock in discount levels or unit prices for incremental purchases during the term. This prevents sticker shock if you expand usage later. Conversely, reducing users during the term is generally not allowed (you usually cannot scale down licenses until renewal time without penalty). Thus, be conservative in your initial subscription count, purchasing for current needs and short-term growth but not far beyond.
- Environment and Usage Limits: Understand what’s included in the subscription. Oracle typically provides at least two environments (production and test) with your cloud subscription. If you require additional environments (say, a dedicated development sandbox or a performance test environment), discuss whether those incur extra costs or come with the package. Some Oracle SaaS offerings also have storage or transaction limits (rare for ERP, but worth verifying). Ensure the contract specifies any limits relevant to your usage patterns.
Essentially, the SaaS pricing model shifts costs to a recurring operating model. It can sometimes appear more expensive year-over-year than just paying maintenance on an old system; however, it delivers continuous innovation and reduces internal IT overhead (no hardware, no upgrades to manage, etc.).
CIOs should build a five- to ten-year TCO comparison to fully understand the cost profile of staying on-prem vs. moving to the cloud. Often, avoiding infrastructure refresh and leveraging cloud automation balance out the subscription costs, but this analysis will be unique to each enterprise.
Strategies to Avoid Duplicate Costs During Migration
One of the biggest concerns in an Oracle cloud transition is paying for the old and new systems simultaneously. Without proper planning, companies might pay hefty on-prem support fees and new cloud subscriptions concurrently for an extended period – essentially double-paying.
Below are strategies to mitigate or eliminate these duplicate costs:
- Leverage Transition Period Waivers: As noted, Oracle permits a transition period (e.g., 100 days of concurrent use). Use this window efficiently. Ideally, go live on the new system and decommission the old one within this period. If 100 days is insufficient for your cutover, engage Oracle – they sometimes extend this for large customers or complex projects if negotiated upfront. The goal is to ensure you aren’t paying for two full production environments beyond the grace period.
- Negotiate Maintenance Suspension: A powerful negotiation tactic is to ask Oracle to suspend your on-premises support fees during the cloud subscription term (or a portion of it). Oracle may allow you to temporarily halt maintenance payments on the on-prem licenses while migrating, especially if you’ve committed to their Cloud. For a defined transition period, you don’t pay support on EBS/JDE/PeopleSoft, freeing that budget to pay for the Cloud subscription. From Oracle’s perspective, they know you are moving off the on-prem product, so waiving maintenance for a few months in transition can be a concession to win the cloud business. Be sure this is documented in your contract (e.g., “maintenance fees on XYZ licenses waived from date X to Y during active SaaS subscription”).
- Co-term Cloud Start with Support End: Align your cloud subscription start date with the expiration of your on-prem support period. For example, if your EBS support renews every June, plan the Fusion Cloud contract to begin in June, when you would otherwise pay support. This way, you roll what would have been the support payment into the SaaS fee. Many companies time their migrations with maintenance renewal cycles to avoid writing two checks. If a cloud deal is reached off-cycle from your support renewal, see if Oracle will credit unused support (if you paid through a future date) toward the new subscription.
- Phased Module Migration: If you are moving in phases (e.g., you will go live with Financials Cloud first but keep HR on PeopleSoft for another year), attempt to reduce support costs for the on-prem modules you’re not using. Oracle’s policies usually require maintaining full support if any module in a product suite is used, but there are ways to negotiate partial support drops. For instance, if you completely retire one pillar of functionality, you might be able to terminate support for that and only keep paying for what remains until it too migrates. Work with Oracle to adjust support fees to match the reduced footprint. Another approach is to negotiate a flexible support model in the interim – Oracle might agree to a smaller support fee if you agree not to update the on-prem system during the transition (since you’ll be decommissioning it). Each situation is unique; the key is not to assume you must pay 100% support if half the system is already unused.
- Third-Party Support (Alternate Path): As an alternative to Oracle’s support, some companies moving to the cloud have opted to switch to third-party support (such as Rimini Street or Spinnaker Support) for the last few years of their on-prem system’s life. Third-party support can be ~50% of Oracle’s fee, saving cost while you transition. Caution: Moving to a third-party support vendor can complicate relations if you plan to use Oracle’s conversion programs or remain in Oracle’s good graces during the migration. Oracle may view it as lost revenue and be less inclined to offer attractive cloud deals. This strategy is more common if an organization considers switching to a different cloud vendor entirely. Suppose your end-goal is Oracle Fusion Cloud and you want Oracle’s incentives. In that case, it might be better to negotiate directly with Oracle for a support reduction or credit rather than exiting Oracle support prematurely.
- Optimize Project Timeline: Simply put, a faster migration reduces overlap costs. While rushing an ERP project is not advised, tight project governance can prevent delays that would extend the period of dual running costs. Use Oracle’s cloud implementation accelerators and experienced partners to hit the transition window. Every extra month on-premises after the cloud is live might mean an extra month of paying for legacy support that could potentially be ended.
Many enterprises have transitioned with little to no financial double-dip by employing these strategies. The most powerful lever is negotiating terms with Oracle (they would prefer some concession than losing the customer entirely). The final section of this playbook delves into negotiation tips to ensure you get such favorable terms.
Licensing Negotiation Tips and Contract Renewal Timing
Negotiating an Oracle SaaS agreement alongside the retirement of on-prem licenses is a complex exercise. CIOs and procurement leaders should approach Oracle with a clear plan and leverage. Below are key negotiation tips to achieve the best outcome, as well as guidance on timing your contracts:
- Shelve, Don’t Surrender On-Prem Licenses: Instead of prematurely terminating your on-prem licenses, negotiate the right to “shelve” them during the cloud subscription term. Shelving means you retain the licenses (perhaps without active support), so that if the cloud journey fails or you need to fallback, you still have the option to reinstate your on-prem systems. This provides insurance, and Oracle should have no objection if they expect you to be happy on their cloud. Ensure the contract allows you to resume support for on-prem licenses later if needed (possibly with some notice or fee). This keeps Oracle accountable for delivering on the cloud promises and leaves you with an exit strategy.
- Negotiate a Transition Period Clause: As discussed, get a formal clause for any maintenance fee suspension or dual-use period. The contract should state that during the migration phase, you will not be charged on-prem maintenance (or those fees will be credited against the cloud fees). Without a written agreement, you might be stuck paying for everything. Oracle is often amenable to this ask, but it must be explicit in the contract. Tie cloud subscription commencement to key milestones (e.g., go-live) to avoid paying for cloud before you can use it.
- Align Cloud Start with Go-Live: Oracle typically will set the cloud subscription start date at contract signature or a fixed date, but you can negotiate flexibility. Align the billing start of subscriptions with your planned go-live date so you’re not paying for unused months. If your project slips, include a provision to adjust the start date or provide credits for lost time. If this issue isn’t addressed, it’s common to waste a significant portion of the first-year subscription due to implementation delays.
- Avoid Over-Commitment – Phase Your Purchase: Do not feel compelled to license every user or module up front “just in case.” Start with what you need in Phase 1. You can include contractual options to add more users or modules later at the same discount. This avoids overspending and then trying to drop subscriptions (which is usually impossible until renewal). Also, clarify any user definitions in the contract to avoid compliance surprises (e.g., who qualifies as a “user” or “employee” that needs a license). Misdefining this could mean you inadvertently need more subscriptions later. Get Oracle to agree on the user-counting method in writing.
- Negotiate Renewal Caps: Ensure the contract has a cap on price increases at renewal time (after the initial term). Oracle often includes a standard renewal cap (for example, no more than a 3–5% increase), but verify and try to lower it. Importantly, note that Oracle’s renewal cap might be conditional – typically, it holds only if you renew the same or a greater number of users. If you downsize your user count later, the cap can be void, and Oracle could reprice. To protect yourself, try to lock in pricing for a range (e.g., even if we renew at 20% fewer users, the unit price cap still applies). If Oracle won’t budge on that, just be aware that reducing licenses later could lead to higher per-unit costs, and plan accordingly.
- Secure Rebalancing Rights: Over a multi-year cloud contract, your needs might change – for instance, you purchased 300 ERP Cloud users but later realize you need fewer ERP users and more HCM Cloud users. Negotiate a rebalancing clause that lets you shift some investment between cloud services. Oracle sometimes allows customers to exchange a portion of unused subscriptions for others in their portfolio during the term. This flexibility ensures you don’t pay for idle services while needing to buy another. Even if 100% rebalancing isn’t offered, attempt to get the right to swap a certain percentage of your subscription value to different products of equal value.
- Plan for Successor Products: Technology evolves, and Oracle might introduce new cloud products or replace modules with next-gen versions (for example, Oracle might roll out a new AI-driven module that wasn’t in your original purchase). Add a “successor products” clause to the contract, stating that if Oracle discontinues or replaces a service, you get access to the equivalent new service at no additional cost. This protects you from being forced into buying a more expensive package mid-term because Oracle changed its offerings. Similarly, guard against Oracle bundling features you previously had into new SKUs – the contract should ensure you continue to receive the functionality you paid for, even if product names change.
- Long-Term vs. Short-Term Contract: Oracle will push for a longer-term (5+ year) subscription, often with attractive initial discounts. Be cautious. Negotiate flexibility in any long-term deal. Options include: the right to reduce users at annual checkpoints, the right to terminate specific modules if not needed after a couple of years, or at least an opt-out clause at some mid-point with minimal penalty. If Oracle won’t allow much flexibility, consider a slightly shorter term (e.g., 3 years) so you can re-evaluate sooner, even if the discount is a bit lower. The balance to find is a commitment long enough for a good price but not so long that you’re trapped if circumstances change.
- Use Oracle’s Fiscal Calendar for Leverage: Timing can significantly affect Oracle’s willingness to negotiate. Oracle’s fiscal year ends on May 31, and quarterly targets are hit in August, November, February, and May. Plan your negotiation to coincide with the end of the quarter or, best, the end of the year (Q4). At these times, Oracle sales reps are pressured to close deals and may offer higher discounts or extra incentives. For example, signing a cloud deal in May (Q4) could yield a better price than June. Communicate your timeline to the Oracle account team such that it intersects with their quota period for maximum leverage. That said, don’t let their timing rush a decision you aren’t ready to make – use it to your advantage when you are ready.
- Consider Expert Help: If your organization lacks experience in Oracle mega-deals, consider engaging a third-party advisor or licensing expert to assist in negotiations. Firms experienced in Oracle contracts can benchmark your deal, identify hidden risks, and suggest additional terms (for example, clauses about non-production environment usage, data export rights on termination, etc.). Oracle writes Oracle’s contracts – you are allowed to propose amendments. Ensure you review data ownership and extraction terms, service level agreements, and indemnities, not just licensing and price. A well-negotiated contract will save money and prevent headaches later.
By following these tips, CIOs can enter negotiations well-prepared and leave with a cloud agreement that aligns with their organization’s interests. Remember that everything is negotiable, especially when transitioning to a major ERP platform.
Oracle wants to win a cloud conversion, which gives customers leverage. Start discussions early (at least 6–12 months before your current license support renewal or project go-live) and involve IT and procurement/legal teams to cover all angles.
Actionable Next Steps and Recommendations
In planning and executing a transition from Oracle on-premise applications to Oracle Fusion Cloud, CIOs should take the following actions:
- Inventory Your Licenses and Contracts: Document all current Oracle application licenses, modules, user counts, and support costs. Understand your contractual renewal dates and any restrictions (like license sets or ULAs). This is your baseline for negotiation and planning.
- Build the Business Case: Develop a multi-year total cost of ownership comparison between staying on-prem and moving to Fusion Cloud. Include software costs (license vs. subscription), hardware/infra, support, personnel, upgrade costs, etc. Factor in qualitative benefits (agility, innovation) to support the strategic rationale. This will prepare leadership and budget owners for the investment.
- Engage Oracle and Explore Programs: Contact your Oracle account manager or Oracle’s Customer 2 Cloud team to discuss options. Request a briefing on any available migration programs, cloud credits, or financial incentives for moving to Fusion Cloudoracle.com. Consider a third-party licensing consultant to get an independent view of your options and leverage points.
- Plan the Transition Phases: Create a high-level migration plan identifying which business processes or modules will move first and the timeline. Coordinate this with your licensing strategy – e.g., if Financials goes live in the Cloud by Q4, plan to drop PeopleSoft Financials support by then. Ensure the plan accounts for a safe overlap period (e.g., that 100-day dual-use window) and includes contingencies if the project is delayed.
- Optimize Contract Timing: Time your cloud subscription purchase to coincide with support contract renewal or Oracle’s quarter-end, whichever gives you more advantage. If a support renewal is imminent, use the opportunity to negotiate a cloud deal instead of renewing (thus avoiding another year of on-prem costs). Conversely, if you just renewed support, you have runway to evaluate cloud and can aim for Oracle’s fiscal year-end for potentially better discounts.
- Negotiate Favorable Terms: When reviewing Oracle’s proposal, push back on initial quotes and leverage the tips in this playbook. Specifically, negotiate to eliminate overlapping costs (maintenance holidays, credits for unused support), include caps and flexibility in the contract, and secure the pricing protections for future years. Bring up critical issues such as data residency, security, or compliance needs that may require contract addenda or specific Oracle commitments.
- Prepare Internal Stakeholders: Moving to the cloud will change how IT operates (no custom patches, new update cadence, staff retraining). Ensure your IT team and business users are prepared for these changes. From a licensing perspective, assign someone to monitor the usage of cloud services and ensure you stay compliant with user counts and terms (a role often called Software Asset Management). This will help avoid overage charges or true-up surprises later.
- Execute and Monitor: Manage the migration actively once the contract is signed. Track the timeline so that you terminate on-prem use as planned to avoid policy violations. Verify that Oracle delivers any agreed services (like integration assistance or training under the Customer 2 Cloud program). Conduct a review post-migration: Make sure all legacy support bills have stopped and your new subscription billing aligns with the contract. Set reminders for renewal negotiation well before the initial term ends to evaluate if adjustments or renegotiations are needed based on your first years in the cloud.
By tackling these steps methodically, CIOs can ensure a smooth transition from Oracle’s on-premise suites to Fusion Cloud Applications, capturing modern capabilities while tightly managing costs and risks. This playbook, combined with Oracle’s guidance and expert advice, should empower you to turn a daunting migration into a strategic success story for your enterprise.
