Oracle licensing

Oracle Licensing Strategies for Cost Optimization

In the complex world of Oracle licensing, cost optimization is a critical goal for many organizations. However, achieving this goal requires a strategic approach.

  • This article aims to provide a comprehensive guide to Oracle Licensing Strategies for Cost Optimization.
  • We will delve into the importance of compliance, the potential for optimization, negotiation tactics, and the need to review your Oracle strategy.
  • The goal is to equip you with the knowledge and strategies to optimize your Oracle licensing costs effectively.

Compliance: The Foundation of Cost Optimization

Any serious strategy for cost optimization starts with compliance. Understanding what you use and what you don’t use sets the foundation for cost optimization. You can avoid unnecessary costs and penalties by ensuring that your organization complies with Oracle’s licensing rules.

This involves regularly auditing your Oracle software usage, identifying unused or underused licenses, and ensuring that your usage aligns with your entitlements.

Optimization: Maximizing Value from Your Licenses

Once you know what you use, you can ask yourself, “Can we optimize our licenses so that we need fewer licenses?” Just one processor license of Database Enterprise Edition costs $47,500.

Suppose you have 100 processor licenses and can optimize by 10%. In that case, that equals $47,500 in licenses that will be left over and can either be used for other purposes or simply terminate the support and save approximately $100,000.

Negotiation: Leveraging Your Knowledge for Better Terms

The chances you will negotiate a 10-20% reduction with Oracle are slim, if not non-existent.

However, if you followed the steps in compliance and optimization, you have now taken control of the savings and can reduce licenses and support regardless of what Oracle negotiations yield. A hint of what you can achieve with Oracle is an annual increase of maybe 0% instead of 8%, as we have seen in the last few years.

Review Your Oracle Strategy

Do you need Oracle support, or is third-party support an option? More organizations are choosing third-party support, which costs 50-70% less than Oracle support. Other organizations look at Oracle Cloud at Customer and cloud-based solutions. Reviewing your Oracle strategy can uncover new cost savings and efficiency gains opportunities.

Customized Support for Cost Optimization

Every organization is unique and has its different challenges and needs. That’s why we have supported hundreds of customers with an Oracle support reduction workshop, where we review your data and contracts and ask questions about your strategy for a few weeks.

Then we present this during a workshop and give you 10+ options for reducing Oracle costs. The decision on how to proceed is yours, and we help you execute the strategy.


In conclusion, optimizing your Oracle licensing costs requires a strategic approach that includes compliance, optimization, negotiation, and a review of your Oracle strategy.

By following these steps, you can take control of your Oracle costs and achieve significant savings. Whether a small business or a large enterprise, these strategies can help you get the most value from your Oracle software investment.


  • Fredrik Filipsson

    Fredrik Filipsson possesses 20 years of experience in Oracle license management. Having worked at Oracle for 9 years, he gained an additional 11 years of expertise in Oracle license consulting projects. Fredrik has provided assistance to over 150 organizations worldwide, ranging in size and tackling various Oracle licensing challenges, including Licensing Assessments, Oracle audits, Oracle ULAs, and more.