Oracle Support Renewal Contract Checklist
Executive Summary:
Renewing an Oracle support agreement involves the price and the contract terms. This article provides CIOs and procurement leaders with a contractual checklist before signing an Oracle support renewal.
We highlight crucial clauses like auto-renewal notification periods, annual uplift terms (and the lack of built-in caps), Oracle’s “Matching Service Levels” and repricing policies, and audit rights.
Enterprise buyers will learn which contract elements can be negotiated or adjusted to avoid surprises and lock in favorable conditions.
This advisory ensures you review and address all key terms to align your Oracle renewal contract with your organization’s interests.
Read Optimizing Your Oracle License Footprint Before Renewal to Reduce Costs.
Review Auto-Renewal and Cancellation Terms
One of the first things to check in your Oracle support contract is the auto-renewal clause and how to cancel support if needed. Oracle support agreements typically auto-renew for successive one-year terms by default, unless you give notice to Oracle in advance (commonly 30 days) of the renewal date.
Some contracts might stipulate a 60—or 90-day notice. If you miss this notification window, Oracle will automatically renew your support and invoice you for the next year.
This can be problematic, especially if you intend to drop some licenses or switch to third-party support. Best practice: Find the section of your Oracle ordering document or license agreement that covers renewal and termination.
Note the exact notice period and the required method (e.g., written notice to a specific Oracle email or address). Mark a reminder on your calendar well before this date.
If you are negotiating changes, inform Oracle in writing that you do not intend to auto-renew under the current terms (so they know you’re working toward a new arrangement).
Some organizations even negotiate this clause – for example, requesting a longer notice window (say 90 days instead of 30) or removing auto-renewal language entirely, requiring mutual agreement to renew.
Oracle may resist altering its standard practice, but it’s worth discussing if your business needs more flexibility. The bottom line is, don’t get caught by an automatic renewal. Know your dates and plan to communicate any changes to Oracle on time.
Check Annual Price Increase (Uplift) Terms
Oracle’s standard support contracts usually do not explicitly cap annual price increases. Instead, the contract references Oracle’s right to adjust fees, which are often tied to support policies or an inflation index.
In practice, Oracle has been raising support costs regularly (recently ~8% per year in many regions). If you renew without negotiating, you’ll be subject to whatever uplift Oracle imposes that year.
To avoid this uncertainty, see if your contract can include a cap or fixed rate on future increases. If, as part of negotiation, Oracle agrees to a 0% increase for next year, or a maximum of 3% per year for a period, ensure the contract or amendment states that explicitly.
For example: “Support fees for the Oracle Database licenses shall not increase by more than 3% annually for the next three renewal periods.” Suppose you’re signing a new purchasing agreement as part of renewal (say, buying new licenses or transitioning to a different agreement type).
In that case, that’s an opportunity to bake in predictable support costs, such as a clause that support will remain at 22% of net license fees with no additional uplift for N years.
Many Oracle customers mistakenly believe the standard 22% fee is fixed, only to be hit with an 8% uplift because nothing in the contract prevented it. Action item: Negotiate and document any pricing protections.
If Oracle refuses to write a cap, be aware that your support fees can rise, and budget accordingly (or plan to push back next year). Contracts are about clarity—if they aren’t in writing, Oracle’s broad policies will govern, usually in their favor.
Validate Matching Service Levels (All-or-Nothing Support)
As discussed in previous articles, Oracle’s Matching Service Levels policy is typically referenced in the Technical Support Policies document rather than spelled out in the main contract. However, it’s a contractual obligation: you can’t keep some licenses on support while dropping others for the same product.
Ensure you understand how “license set” is defined in your agreements. Suppose you have multiple Oracle orders or different license sets.
In that case, you might have some flexibility across those (for example, support could be dropped on one order if all licenses are terminated, while keeping support on another order).
But generally, assume it’s all or nothing per product. If you foresee a need to treat subsets of licenses differently (perhaps you want to keep production licenses on Oracle support but self-support or third-party support non-production licenses), discuss this with Oracle and attempt to negotiate an exception.
In rare cases, customers have negotiated custom terms allowing certain licenses to be unsupported.
This might involve carving out separate agreements – e.g., splitting licenses into two contracts so one can be terminated. If Oracle agrees, it must be reflected in your contract or an addendum.
The standard policy applies without an explicit exception. So, when renewing, if you plan to drop licenses, be prepared to terminate them (remove them from the contract) as part of the renewal paperwork.
In your checklist, mark that you have addressed any partial support scenarios up front to avoid unintentionally breaching the matching policy.
Beware of Repricing When Reducing Licenses
Oracle has a lesser-known practice: If you reduce your license count, they reserve the right to reprice the support fee on the remaining licenses.
The logic from Oracle’s side is that support pricing often benefits from volume. If you suddenly support fewer licenses, Oracle might say the unit price for support of each license goes up.
Check Oracle’s Technical Support Policies or your ordering document for “pricing following reduction of licenses” or similar wording.
For example, it may state that Oracle can increase the unit support price if you terminate some licenses. In negotiating your renewal, bring this up if you’re dropping a substantial number of licenses.
Try to get Oracle to agree in writing that the support fee for remaining licenses will stay proportional. In some cases, Oracle may waive repricing as a concession (especially if you’re making another purchase or committing to a multi-year term).
A clause might be added, such as “Oracle agrees that support fees for the remaining licenses will not increase due to the termination of X licenses.”
This is not standard, but it has been done in special cases. At minimum, be mentally prepared: if you’re terminating 50% of your licenses, Oracle could try to keep your total bill the same by doubling the per-license support on the rest (so they still collect the same money).
It doesn’t always happen, but it’s allowed unless you negotiate otherwise. Always run the math and ask Oracle upfront how they will calculate support after a reduction, so you’re not caught off guard.
Note the Notice Period to Cancel Support (and Negotiate Flexibility)
Regarding auto-renewal, confirm the notice period to cancel or reduce support in your contract. It’s often 30 days, but could be more.
If your business operates with long budgeting cycles, 30 days might be too short to decide whether to cancel support for certain licenses—you may want 60 or 90 days.
During renewal negotiations, you can attempt to negotiate a longer notification period or even a co-terminus grace period.
For example, some companies have added language stating that if they choose not to renew certain licenses, they can do so up to 30 days after the renewal date with no penalty—essentially a short grace period to finalize internal decisions.
This is uncommon, but it illustrates that you can make creative requests. At the very least, diary the cancellation deadline. If the contract says, “must notify Oracle 30 days prior,” treat that as a hard cutoff.
Internally, you should target decisions well before then because any corporate approval processes or Oracle discussions need to conclude by that time.
Understand Reinstatement Fees and Policies
A critical clause to be aware of is what happens if you let Oracle support lapse and later need it again.
Oracle’s contracts or support policies lay out Reinstatement Fees: if you drop support and a year (or more) later decide to re-enroll those licenses in Oracle support, you will owe back support for the lapsed period, plus a 50% penalty on that sum, plus paying for support going forward.
For example, if you skipped 2 years of support on a $100k license (which would have been $22k/year), to reinstate you’d pay $44k (for the two missed years) + $22k (50% penalty) = $66k, and then still pay the current year’s $22k. This exorbitant cost often makes reinstatement financially unviable.
CIO checklist item: Acknowledge the reinstatement policy. If you intentionally leave Oracle support (perhaps moving to third-party support or using the software unsupported), realize that returning later will be very expensive. Sometimes buying new licenses is cheaper than reinstating old ones.
Oracle rarely, if ever, waives reinstatement fees as it’s meant to deter customers from dropping support “temporarily.” It’s good to have this knowledge during renewal talks, so you don’t assume you can pause support for a year and easily come back.
If you might need Oracle support again shortly, consider options like keeping minimal support for that period or negotiating an alternative.
The reinstatement clause is standard and non-negotiable in most contracts, but knowing its impact is key to making informed decisions about dropping support.
Look for New Terms or Policy References in Renewal Documents
When Oracle sends over a renewal order form or agreement, don’t assume it’s identical to your old contract. Oracle occasionally updates its standard policies and URLs referenced in the contract.
For instance, the renewal might reference the latest “Oracle Technical Support Policies – dated June 2025,” whereas your original was older.
Those policy documents can change the fine print (for example, Oracle might update virtualization rules, cloud-related terms, or the support uplift approach). Always compare the policy version and any terms in the new quote vs. your last agreement. If you spot differences, ask Oracle to explain what changed.
Additionally, Oracle might include terms for new programs like “Support Rewards” (credits you earn by using Oracle Cloud that can offset support fees).
If such incentives are offered, scrutinize them: they often come with conditions (e.g., you only get credits if you maintain a certain cloud spend, and credits might expire).
Ensure any new benefit doesn’t inadvertently lock you in or come with strings attached. Involve your legal team to parse any unfamiliar language.
A prudent approach is to request a redline from Oracle showing changes from your prior agreement – sometimes they’ll provide it, which saves you time.
Audit Clause and Compliance Considerations
Virtually all Oracle license agreements include an audit clause allowing Oracle to audit your usage. When renewing support, that clause typically remains in force and unchanged (Oracle rarely removes or softens audit rights).
While you might not succeed in negotiating it away, it’s wise to be mindful of it. If you are dropping licenses or making changes during renewal, ensure your compliance status remains clean.
Oracle can initiate an audit with 45 days’ notice (per standard terms), irrespective of support status (even after you leave support, they can audit past usage). Tip: If you reduce your supported licenses, implement measures to prove that any licenses you dropped are not actively used.
For example, document the uninstallation or decommissioning of those instances after terminating licenses. During contract review, verify that the audit clause in the renewal references the same notice period and confidentiality protections as before.
Occasionally, Oracle updates audit terms in newer agreements; make sure nothing got stricter without you realizing it.
Being audit-ready is a best practice. Consider cleaning up any compliance gaps as part of your renewal checklist so that an audit (which could be more likely if you aggressively cut support, as some anecdotal evidence suggests) won’t find issues.
Don’t Forget: Everything is Negotiable (to a Point)
As a final checklist item, remember that many contract terms, not just price, can be negotiated or clarified. If Oracle’s renewal quote or agreement language doesn’t sit right with you, raise it.
Examples: you could negotiate co-termination of support (align all support to end on the same date for simplicity), or request that Oracle include a specific contract rider you need (maybe a clause acknowledging some agreed flexibility).
Large enterprises have successfully inserted custom clauses, for instance, around data security in an audit, or specific carve-outs to standard policies. Smaller customers might get less leeway, but you won’t know if you don’t ask.
The key is to pick your battles – identify which contract terms could pose significant cost or risk to you (auto-renew, uplifts, etc.) and focus on those. Use plain language in negotiations: e.g., “We need a provision that caps annual increases at X%; otherwise, we cannot achieve budget stability.” Oracle’s contracts team may push back, but they might meet you halfway with a side letter or internal email assurance.
Strive to get formal language, but even a written commitment from Oracle can be useful if a fully amended clause isn’t possible. Double-check the final documents against your checklist before signing.
Ensure all promised changes are included, and no unwanted surprises are slipped in. Once signed, those terms will govern your relationship for the renewal period, so a careful contract review is just as important as haggling over the cost.
Recommendations
- Locate and note the auto-renewal clause in your current Oracle agreement. Diary the required notice date (e.g., “must notify Oracle by March 1 if cancelling June 1 renewal”) and ensure this obligation is tracked so you don’t auto-renew unintentionally.
- Negotiate the renewal notice period if needed. If 30 days is too tight for your internal process, ask Oracle for 60 or 90 days, at a minimum, plan internally to meet the earliest possible notice deadline.
- An attempt to secure a cap on support increases as part of the renewal. If Oracle agrees verbally to no increase or a limited increase, insist that the contract include that cap for the next term(s). Assuming an 8% (or more) price hike without a written cap could hit you.
- Review Oracle’s Technical Support Policies referenced in the contract. If the renewal points to a newer version, obtain that document and read key sections (support terms, matching service levels, termination, etc.) to ensure you know the rules you agree to.
- Address license reductions in writing. If you are dropping licenses, confirm how Oracle will price the remaining ones. Try to get a clause preventing repricing, or at least have Oracle email you that remaining support fees will be reduced proportionally, so you have a record.
- Ensure the contract reflects special terms. Any negotiated item (e.g., a discount, a service credit, a support reward, a custom carve-out) should be part of the written agreement or an addendum. Do not rely on conversation alone.
- Have legal/procurement thoroughly review the renewal documents. Compare them against your last signed contract to catch any differences. Look for sneaky changes like new linked documents, different governing law, updated audit wording, etc.
- Be mindful of compliance during changes. If you negotiate anything unusual (like an exception to the matching service level or permission to use third-party support), get it explicitly granted in the contract. Likewise, if you reduce support, ensure you won’t inadvertently be out of compliance with license use after renewal.
- Know your audit clause – even though you might not change it, remember that Oracle can audit you. Conduct a self-audit, especially if you downsized licenses, to ensure you’re not using more than you’re paying for (Oracle could audit and back-bill you if you are).
- Keep records of all renewal communications. File away the signed renewal order, the Oracle support policy document (screenshot the version/date), and any emails or side letters from Oracle about your renewal. These may be important if there’s any dispute over what was agreed upon.
- Plan for the next renewal – use this renewal’s experience to improve your playbook. For example, if you managed to negotiate a better term, note when that term expires (e.g., a 3-year cap ends in 2028 – you’ll need to renegotiate then). Continuous improvement in contract management will compound benefits over time.
FAQ
How do I find the auto-renewal and notice clause in my Oracle contract?
Check your Oracle Ordering Document or License Agreement (often titled OMA or OLSA). Look for sections mentioning “Term and Renewal” or “Technical Support Renewal.” It usually states that support will renew automatically for a given period (one year) unless you provide written notice of termination X days before the anniversary. If you can’t find it, ask Oracle or your reseller for the terms. Knowing the exact advance notice required (30 days is common) is critical.
What happens if I miss the notice deadline for canceling Oracle support?
If you miss the deadline, Oracle will auto-renew your support for another term (usually one year) under the same terms, and you will be on the hook for that period’s fees. Non-payment of an auto-renewed invoice could be considered a breach of contract. In practice, if you realize just after renewal, you might appeal to Oracle for a one-time exception to drop support late, but there’s no guarantee. It’s safer to never miss the deadline proactively by keeping track of it.
Our contract doesn’t mention support price increases—does that mean Oracle can’t raise our fees?
Not necessarily. If the contract is silent on a cap, Oracle’s standard policy (referenced by URLs in your contract) allows them to increase fees, typically annually. Oracle has recently been exercising that right with around 7–8% increases. So, a lack of a mention is not protection for you – it favors Oracle. Only an explicit clause like “fees will remain at X” or “increases not to exceed Y%” would limit Oracle. Always assume an uplift is coming unless you have it in writing that it won’t.
Can I negotiate out the auto-renewal altogether?
Some customers have successfully negotiated contracts where support does not auto-renew, meaning Oracle would need a new purchase order or agreement each year. This is more common in large, heavily negotiated agreements. Oracle prefers auto-renew for its revenue predictability. You can ask to remove it or get a longer decision window. If Oracle won’t budge, make sure you manage the auto-renewal internally (as discussed, track the date).
What is Oracle’s repricing clause, and how can it affect me?
Oracle’s repricing clause says that if you reduce the quantity of licenses on support, Oracle may re-evaluate the support fee for what’s left. They could raise the per-license support cost so your overall spend doesn’t drop proportionally. For example, if you had 100 licenses at $100 each in support (total $10,000) and drop to 50 licenses, Oracle might say support per license is now $150, making your total $7,500 instead of $5,000 – capturing some of the “savings” back. It’s a way for them to protect their revenue. Not all support reductions trigger repricing, but it’s at Oracle’s discretion per the contract. Always ask Oracle how they calculate the new support amount if you’re cutting licenses. If possible, negotiate a written assurance that no repricing will occur for this reduction.
Can we get a refund or credit for unused support if we terminate mid-term?
Generally no. Oracle’s support is sold as a yearly term and is non-refundable if you cancel mid-term. That’s why timing terminations with the renewal cycle is important – you terminate effective the next renewal, so you don’t pay beyond that. If you’re partway through a year and realize you want to drop something, you can certainly notify Oracle not to renew it next time, but you won’t get money back for the current period even if you stop using the software now. Oracle’s contracts make support fees owed for the full term once committed.
We agreed on a special condition with our Oracle rep. How do we ensure it’s honored in the renewal?
Ensure that the special condition is included in the written contract or order form you sign. For instance, if Oracle’s rep said, “We’ll give you two extra months of support at no charge,” the order should reflect an end date extension or a credit. If they promised “We won’t increase your support price next year,” it should appear as a 0% increase note. Verbal promises or emails from sales reps may not hold up later if they are not in the contract. Work with Oracle’s contracts department and insist that the paperwork matches what was promised. It’s okay to send them an email enumerating the agreed-upon points and ask that they confirm and include them.
What should I do if the renewal contract references a URL or document (like support policies)?
Always visit and save a copy of that document at the time of your agreement. Oracle’s online documents can be updated unilaterally. The contract usually says, “per the Oracle Technical Support Policies on oracle.com as of the date of this order.” So you need to know what those policies say on that date. Print them to PDF or archive them. Key items to check in the support policy include: support terms and definitions, matching service level policy, how Oracle handles product de-support and extended support, and any rules around third-party usage or virtualization that could affect you. Knowing these details prevents nasty surprises down the road.
Are Oracle’s audit rights different if we’re not fully supported on all products?
The audit clause in your license agreement typically remains the same regardless of support status. Oracle can audit your usage of its licenses to ensure you haven’t exceeded entitlements. If you’ve terminated some licenses and kept others, Oracle might be keen to verify that the terminated ones are truly not in use. So in a sense, dropping support on some licenses might increase the likelihood of an audit (though Oracle doesn’t state this officially, many in the industry perceive it). The key for you is to remain compliant: if you said you’re no longer using certain licenses, make sure that’s true. Audits can happen whether you have active support, so always maintain good records and usage tracking.
What if Oracle introduces new terms in the renewal that we don’t want to accept?
You have the option to push back. A renewal is a new contract agreement; you are not obligated to sign it if you disagree with the terms. If you spot a new clause or changed term, raise it with Oracle and explain your concern. Often, Oracle might agree to strike a newly added clause if you call it out (especially if it is more relevant to the cloud or something you’re not using). If it’s a broader policy change (like a stricter security requirement on your end), you may not get it removed, but you can at least understand it and possibly negotiate a workaround. In extreme cases, if Oracle insists on an unacceptable new term, you have to decide if it’s a deal-breaker, which could mean not renewing support and exploring other options. Usually, though, with open communication, most issues can be resolved to mutual satisfaction.
