Navigating Oracle’s Software Asset Management (SAM) Verified Program can be tricky, and there are several situations where it might not be in your best interest to participate.
Here are eight scenarios where joining Oracle’s SAM Verified Program could lead to more problems than benefits.
Oracle SAM Verified Program: 8 Situations to Avoid
1. ULA Renewal Negotiations
When negotiating a renewal for your Unlimited License Agreement (ULA), Oracle’s pricing can be arbitrary and based on your inventory reports. If Oracle discovers compliance issues through these reports, they might double the renewal price.
This places you at a significant disadvantage, as Oracle will leverage your compliance issues to increase costs.
2. Java Concerns
If you have Java in your estate or worry about accidentally downloading and running Java, participating in the SAM program might expose you to unwanted scrutiny.
Oracle can request these reports from your audit partner, which can lead to potential compliance issues and unexpected costs for Java usage.
3. Accidental Product Use
Using an Oracle product once or twice may contractually obligate you to purchase a license.
While many customers overlook these accidental uses, being part of the SAM program could force you to buy licenses for such minimal usage, increasing your costs unnecessarily.
4. Platform Migration
During a platform migration, you might temporarily need double environments. Although some customers purchase this license, many do not, running double environments without additional licenses.
Participation in the SAM program would reveal this to Oracle, reducing your flexibility and potentially leading to penalties or additional costs.
5. Annual ELP Shortfalls
At the end of the annual Effective License Position (ELP), Oracle will be informed of missing licenses. This places you at Oracle’s mercy for discounts on purchases.
Historically, savvy organizations negotiate better discounts by approaching Oracle differently rather than admitting a shortfall upfront. Discounts can vary significantly, from 10% to 80%.
6. Virtual Platform Compliance Issues
Deploying Oracle products on virtual platforms like VMware often involves complex compliance strategies.
Oracle has strict policies that may not align with your strategies. If you join the SAM program, you must follow Oracle’s policies, and you will lose the ability to implement your cost-effective compliance strategies.
7. Cost Optimization
Reducing Oracle software costs involves contractual optimization, such as removing unused software from contracts. Joining the SAM program eliminates these options, forcing you to pay support fees for unused software, thereby increasing overall costs.
8. Oracle Account Rep Targets
If an Oracle account representative needs to meet their quarterly target, they can request your latest report. This could pressure you into making purchases to help them meet their quotas, regardless of your business needs.
Advantages of Working with an Independent Partner
Instead of joining Oracle’s SAM Verified Program, consider working with an independent partner for the following benefits:
- Negotiation Leverage: Independent partners can help you negotiate higher discounts on software purchases, leveraging their expertise and market knowledge.
- Cost Reduction: You can cut costs from software contracts, remove unused software, and avoid unnecessary fees.
- Custom Licensing Strategies: Develop and implement your licensing strategies for Oracle on virtual platforms without being bound by Oracle’s strict policies.
- Flexibility on Accidental Usage: Avoid purchasing licenses for mistaken or accidental usage, saving significant costs and reducing administrative burdens.
By understanding these scenarios and their implications, you can make informed decisions about participating in Oracle’s SAM Verified Program and explore more beneficial alternatives.
FAQs
What is the Oracle SAM Verified Program? Oracle has initiated an initiative to help organizations manage their software licenses.
It involves regular audits and compliance checks by Oracle’s verified partners.
Why should I be cautious about joining the Oracle SAM Verified Program? Joining the program can result in Oracle gaining more control over your software usage and compliance status, potentially leading to increased costs and reduced negotiation leverage.
What happens if I don’t like the ULA renewal offer? If you negotiate a ULA renewal and dislike the offer, Oracle can use your inventory reports to identify compliance issues and potentially double the renewal price.
How does having Java in my estate affect my participation in the program? If you have Java in your estate or accidentally download and run Java, Oracle can request reports from your audit partner, exposing you to compliance risks and potential costs.
What if I have used an Oracle product only once or twice? Using an Oracle product a few times may require purchasing a license. In the SAM program, you might be forced to buy a license for accidental or minimal use.
Can I have double environments during a migration? While some customers buy licenses for migration periods, others don’t. In the SAM program, Oracle could discover double environments, reducing your flexibility during migrations.
What if I am missing licenses at the end of the annual ELP? If you are missing licenses at the end of the ELP, Oracle will know, leaving you dependent on Oracle’s willingness to grant discounts, which can vary greatly.
How does using Oracle on a virtual platform like VMware impact my participation? Oracle has strict licensing policies for virtual platforms. In the SAM program, you must follow Oracle’s policies, which limits your ability to create independent strategies.
What is the impact of the program on cost optimization? The program limits your ability to optimize costs by removing unused software from contracts. You may have to pay support fees for unused software.
How does the program affect my negotiation leverage? Sharing your Effective License Position (ELP) with Oracle reduces your negotiation leverage, potentially leading to higher software purchase costs.
What are the benefits of working with an independent partner instead? Independent partners provide more negotiation leverage, help cut costs from software contracts, and allow you to create your licensing strategies for virtual platforms.
Can I avoid purchasing licenses for mistaken or accidental usage? Unlike in the Oracle SAM program, you are not forced to purchase licenses for mistaken or accidental usage with an independent partner.
How does the Oracle account rep’s target quota impact my participation? Oracle account reps can request your latest report to meet their target quota, potentially forcing you to assist them, which can lead to unfavorable terms for your organization.
What are the hidden costs of the Oracle SAM Verified Program? The program involves annual baseline costs and long-term financial commitments, which can lead to hidden expenses and increased financial burdens.
Is the Oracle SAM Verified Program truly customer-centric? Despite being marketed as customer-centric, the program primarily benefits Oracle and its audit partners by increasing control and visibility over your software investments.
