Oracle negotiation experts share four negotiation strategies

Oracle Negotiation Experts Providing Insights

Here are the key points to simplify your Oracle negotiations and optimize your outcomes:

1. Negotiating with an Individual: In Oracle negotiations, you engage with an individual rather than the company itself. Understanding the person’s role and influence is crucial for negotiation success.
2. Compensation Awareness: Knowing how the individual is compensated is vital. Their compensation structure can impact their willingness to provide favorable terms and discounts.
3. Diverse Sales Representatives: Oracle assigns different sales representatives for different products. Discounts are often based on negotiation skills rather than company size or spending. Be prepared to negotiate with different reps depending on the products you are interested in.
4. Customized Contracts: Oracle contracts are highly tailored, and there may be terms not included in the standard contract. Familiarize yourself with these additional terms and negotiate accordingly.
5. Leveraging Timing: Take advantage of Oracle’s year-end and quarterly cycles. These periods can provide opportunities for securing the best deals and incentives.

By keeping these key points in mind, you can navigate Oracle negotiations more effectively, leverage favorable terms, and optimize your outcomes.

Oracle Negotiation – Four tips that will help.

1. Identify Competitive Alternatives: Make Oracle aware that they are not your only option. Even if Oracle is your preferred solution, making them believe you’re considering alternatives creates a competitive environment that can lead to better discounts.
2. Do Your Homework: Conduct market research to understand the typical discounts you should aim for in your negotiation. Determine which contractual terms will be most beneficial for you. Consider seeking advice from industry experts or analysts such as Gartner. The question isn’t whether they can assist but how much value they can add to your negotiation.
3. Utilize Oracle’s Fiscal Calendar: Take advantage of Oracle’s fiscal year, which ends in May. Historically, Oracle is more likely to offer substantial discounts to close deals before the fiscal year ends. On average, organizations receive 35% more discounts when finalizing their May purchases.
4. Understand Your Oracle Representative: Recognize that the negotiation is ultimately between you and the Oracle sales representative, who is motivated by commission, just like a real estate agent. Understand their compensation structure and ask if purchasing certain products could reduce your deal’s overall cost.

Oracle Negotiation Experts Insights

Oracle Negotiation Experts – 6 Steps How to Negotiate Oracle software license agreements

Step-by-Step Guide to Oracle Negotiations: Key Considerations

Follow this step-by-step guide to navigate Oracle negotiations successfully, keeping these key points in mind:

1. Referencing the Oracle OMA: Ensure that your Ordering Document references your Oracle OMA (Oracle Master Agreement) accurately. Avoid signing new OMAs for subsidiaries instead of utilizing the existing OMA signed by the parent company.
2. Negotiating Customer Definition: Determine which legal entities/companies will use and access Oracle Software now and in the future. Two options are available for negotiation:
   • Option 1: List all entities that currently and will potentially require access and use of Oracle Software.
   • Option 2: Leverage Oracle’s standard clause allowing the parent company and majority-owned subsidiaries to be included in the usage rights. This option provides coverage for acquisitions.
3. Territory Clause: Identify the countries where you plan to deploy Oracle Software servers physically. Negotiate the territory clause in your Ordering Document to expand your usage rights beyond the country of purchase. Request worldwide usage to enable flexibility in server deployment and utilization of cloud data regions.
4. Oracle Technical Support Increases: Address the annual increase of Oracle support costs, typically 4%. Negotiate the contract term to control or avoid rising costs:
   • Aim for a 0% support cost increase for up to 5 years at purchase.
5. Merger and Acquisitions Considerations: If divesting a legal entity, negotiate assignment rights in your Ordering Document to allow the divested entity to continue using purchased Oracle licenses for a specified period (e.g., 12-24 months). This grants them time to transition off Oracle or acquire their own licenses. Oracle may require payment to amend or add usage rights without this clause.
6. Fixed Pricing for Future Purchases: Evaluate the need for fixed pricing to streamline future purchases and avoid renegotiating discounts each time. Be cautious with price holds, as negotiating each purchase as a standalone deal may yield better commercial terms. Also, be aware that price holds can limit the ability to terminate unused licenses and support agreements.

By incorporating these considerations into your Oracle negotiations, you can optimize your agreements, control costs, and ensure a favorable outcome for your organization.

​Oracle Cloud Negotiations

Step-by-Step Guide to Oracle Cloud Negotiations: Maximizing Your Contract

Follow this simple step-by-step guide to navigate Oracle Cloud negotiations effectively and optimize your contract terms.

An explanation of its importance accompanies each step:

1. Understand Oracle Sales Rep Incentives:

• Oracle sales reps are compensated based on consumption, which can lead to potential wasted cloud investments for companies.
• By understanding their incentives, you gain insight into their motivations and can tailor your negotiation strategies accordingly.

2. Specify Rollout Phase and Contract Term:

• Many companies overlook the importance of specifying a rollout phase or negotiating a delay in the contract term.
• Including a rollout, phase ensures a structured deployment plan and allows for better management of resources and costs.
• Negotiating the contract term provides flexibility and aligns the agreement with your organization’s timeline and needs.

3. Be Mindful of Price Protection Clauses:

• Including a price protection clause may seem like a safeguard against future price increases. However, Oracle has methods to circumvent such clauses.
• It’s crucial to be aware of this and understand that negotiating the best possible pricing upfront is often more effective than relying solely on price protection clauses.

4. Consider Oracle Sales Rep Incentives:

• Understanding how Oracle incentivizes its sales reps is essential since they will be the primary individuals you negotiate with.
• This knowledge allows you to tailor your negotiation approach, leverage their motivations, and potentially secure more favorable terms.

5. Allocate Time Buffer for Migration:

• When migrating to Oracle Cloud, it’s crucial to consider potential delays or complexities that may arise.
• Allocating a time buffer in the contract accounts for any unexpected hurdles during the migration process, ensuring a smoother transition without unnecessary time constraints.

Following these steps, you can easily approach Oracle Cloud negotiations, leverage your understanding of Oracle sales incentives, and secure a contract that aligns with your organization’s goals while optimizing costs and resources.

FAQs

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