This is a high level guide on how IT procurement professionals can purchase Oracle software – Which license models are available and how does pricing and Oracle negotiation work?
A volume purchase is where you decide with Oracle which products, license metrics and quantities you need to purchase licenses for. Then you negotiate the terms and conditions for these licenses. You will be required to sign an Oracle OMA (Oracle Master Agreement), if you do not have one active. They are usually valid for 5 years. Discount is negotiated per Oracle Ordering Document (licensing agreement) Oracle negotiates each transaction individually.
Oracle ULA is for companies that has unpredictable or high growth of Oracle software. IT procurement professionals should be reviewing Oracle ULA only if there is a planned Oracle ULA growth for 3M USD worth of Oracle software. Read this Introduction to Oracle ULA for more details.
Oracle PULA is a perpetual unlimited license agreement that never expires. It’s a version of Oracle ULA for Oracle customers that see a long term Oracle growth. For more information: What is an Oracle PULA.
Oracle Pool of Funds is a pre-payment to Oracle. The Oracle customer can then choose which licenses it wants to purchase from Oracle during a 2–3-year period. Read this guide for more information.
Oracle has published its price lists on the web. Oracle database enterprise edition processor licensed is priced at 47,500 $, which is a one-time license fee. For all Oracle software licenses there is a 22% additional fee for support and updates. You pay the license fee and 1 year support upfront, then every year Oracle will quote you renewal for support and updates.
There are no rules on discount levels based on company size, revenue or historical purchases from Oracle. Discount levels are decided primarily on contract value and much is the result of negotiation tactics and strategy. Discounts levels can be anything from 5%-90%.
Oracle ULA has no price tag. It is largely based up on the business case that Oracle see that you have for future purchase of Oracle software. If Oracle would find that you are non-compliant with its software licenses for 20m $, then they can offer you an Oracle ULA to solve that issue. The Oracle ULA is price tag is based upon the 20m $ and you may pay 10m $. However, if you negotiate with Oracle without a licensing audit settlement, you may pay as little as 1-3m $.
You can request some pricing at the Oracle store. However, no customer should purchase from Oracle store. Contact the Oracle account rep to negotiate both discounts and terms and conditions for your purchase.
This is the document that contains all the Oracle licensing terms. Terms and conditions in this document take precedence over the Oracle Master Agreement. The Oracle Ordering Document is very open for customizations and Oracle customers should acquire knowledge for which non-standard terms to request Oracle to include into this agreement.
You cannot purchase Oracle software, services or hardware without having an active Oracle Master Agreement. We recommend you download a copy from Oracle website early in your negotiations for your legal to review. From a license management perspective, you should pay attention to the Oracle audit clause.
If you need support to negotiate any Oracle licensing or cloud contract. We are independent Oracle and cloud licensing experts. Contact us to request a proposal and a statement of work.
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