Oracle Cloud Contracts – What you should know in 2022

Oracle cloud contracts are 2 different documents, its the CSA that governs many topics as we list below. This cover all of your different cloud services that you purchase from Oracle. Then you have the cloud ordering document that deals with the specific cloud services that you purchased from Oracle in that agreement. Regardless if you purchase Oracle Universal Cloud Credits and want to move to Oracle cloud at customer or OCI in Public Cloud you will need to negotiate an Ordering Document and a Cloud Services Agreement – CSA. The CSA will be valid for 5 years, that is why it is important to negotiate it properly before signing one in a rush. The Oracle Ordering Document, if negotiated properly can protect your company with increased flexibility to swap cloud services, having the cloud services start when you start using them instead of paying for cloud services when you have not had time to implement them. This article provide a high level introduction to Oracle cloud contracts.

 

oracle cloud contracts

 

Oracle Cloud Services Agreement (CSA)

 

This document governs the use of Oracle cloud services and your agreement with Oracle.
What is covered but not limited to:

  • Which legal entity have the right to use the cloud services.
  • Payments to Oracle and how to manage over-usage.
  • Ownership rights and restrictions, you own your data, Oracle owns its IP.
  • Non-disclosure clause.
  • How Oracle protects, manages, and stores your data.
  • Oracle does not warrant that there are no services disruptions.
  • Liability and Indemnification
  • Term and termination clause, if the cloud agreement is terminated Oracle
    will make the data available to you for 60 days.
  • Force Majeure
  • Governing law and jurisdiction
  • Assignment, you may not assign your cloud services to another legal entity.
    Oracle Cloud Ordering Document

All Oracle cloud customers must sign an Oracle CSA with Oracle and some contract terms are negotiable while others are not.

 

 

Cloud Ordering Document

This document mainly deals with specific cloud services that you purchase from Oracle, what are the quantities, license models, pricing and any special conditions attached to these specific cloud services.

  • Name of cloud services that you can use
  • Quantities or value/amount that you can consume/utilize.
  • Special terms that grant or restrict your cloud usage.
  • Price protections, renewal pricing, priceholds etc.

 

What are not in Oracle Cloud Contracts?

Licensing and cloud services definitions
Oracle Cloud hosting and Delivery Policies

 

We recommend: If you do not have existing Oracle CSA and Cloud agreements with Oracle, it is essential that you carefully review and prepare before your Oracle Cloud negotiation. That way you can set the baseline for future cloud purchases. If you fail in your first cloud negotiation, you will have a much harder time negotiating better terms for renewal or additional purchases.

 

 

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Are you considering migrating to Oracle cloud and need help to understand Oracle Universal Cloud Credits or simply what licenses you should purchase in Oracle SaaS?  Your first Oracle Cloud contracts are the most important ones and we can help! Reach out to find out more about our services and how we can support your organization.