Oracle Support Reduction: A Brief Overview
- Rising Costs: Oracle’s escalating support fees challenge many organizations.
- Seeking Solutions: Companies explore avenues to minimize these expenses.
- Strategic Approach: Effective strategies can lead to significant savings.
Reduce Oracle Support Fees in 2024
The rapidly evolving tech landscape has brought numerous ways to optimize and reduce Oracle support fees.
Based on market trends and the decisions our clients are making, here’s a curated list of top strategies to consider for 2023 and 2024:
- Third-Party Support: Especially for Oracle applications like Siebel, JDE, E-Business Suite, and Peoplesoft, third-party support has become a popular choice. Opting for this can save 50% or even more on support costs.
- Transition to Oracle Cloud-Based Solutions: For large Oracle customers, especially those with an Unlimited License Agreement (ULA), moving to Oracle’s cloud-at-customer solutions can be a game-changer. Over four years, this shift can lead to a cost reduction of up to 60%.
- Negotiate Oracle Support Renewal Caps: Oracle is increasing support fees by 8% year-on-year to encourage cloud adoption, so it’s crucial to negotiate. By committing to Oracle for a specified number of years, you can secure a multi-year renewal with 0% or even lower caps.
- Migrate to Oracle OCI Public Cloud: Transitioning to the Oracle Cloud Infrastructure (OCI) public cloud and terminating on-premise support contracts can be a strategic move. This modernizes your infrastructure and paves the way for adopting Oracle cloud products, further reducing costs.
Oracle Support Reduction Challenges in 2023 and 2024
Navigating Oracle support fees is challenging as we head into 2023 and 2024.
Here are some of the common hurdles organizations might face:
- Large Oracle Customer with Unused Licenses: Being a significant Oracle customer often means having many licenses. As more applications shift to non-Oracle databases, many licenses remain unused. However, reducing costs becomes challenging when these licenses are tied to broader contracts.
- Navigating the Oracle ULA Landscape: If you have an active Oracle Unlimited License Agreement (ULA), planning for its certification is crucial. Redress Compliance can assist in this process and help design a subsequent support reduction strategy. If your ULA is already certified, we can jump straight to strategizing on support cost reduction.
- Lack of Awareness of Available Options: The market offers a myriad of options for support reduction, from transitioning to cloud-based solutions to license dumping, downgrading, and even contractual changes. It’s essential to be informed about all these avenues. We provide a comprehensive overview, ensuring your management can make well-informed decisions.
Expert Guidance
Navigating Oracle support fees can be complex, but you don’t have to do it alone. Contact Redress Compliance today.
Our Oracle Advisory Services includes Support Reduction, where we conduct a comprehensive 360° review of all your support options and provide a clear roadmap to significantly reduce your Oracle support costs.
Top 3 Reasons Why Oracle Solutions Might Not Be for You
- High-Cost Oracle’s software is pricey. Market alternatives often offer similar features at a lower cost. The value Oracle provides doesn’t always match its high price.
- Poor Customer Treatment Many users report negative experiences with Oracle’s customer service. Frequent software audits can lead to unexpected costs. Oracle often demands more money through these audits, using technicalities to justify their claims.
- Inflexible Agreements Oracle is known for locking customers into rigid contracts. These agreements can force customers to pay for unused software.
