1. How Oracle Support Rewards Work
Oracle Support Rewards is a financial incentive programme that ties OCI cloud spending directly to Oracle software support cost reduction. The concept is simple: for every dollar you spend on eligible OCI services, you earn a percentage back as a credit that can be applied to your Oracle support invoices.
The programme is available to most Oracle customers with on-premises software support contracts who use OCI under a Universal Credits subscription model. In essence, your cloud infrastructure budget can directly subsidise your database and middleware support bills โ linking cloud spend to support savings in a predictable, measurable way.
Consume OCI Services
Run compute, storage, database, and platform services on Oracle Cloud Infrastructure.
Earn Credits Automatically
25% (standard) or 33% (ULA) of your OCI spend accrues as reward credits monthly.
Apply to Support Bills
Redeem accumulated credits against eligible Oracle software support invoices.
Reduce Annual Support Costs
Year over year, support bills decrease as OCI usage generates ongoing credits.
| Programme Element | Description |
|---|---|
| Rewards | Financial credits earned from OCI cloud spending |
| Usage | Applied to offset Oracle software support contract expenses |
| Eligibility | Oracle technology licence customers using OCI under Universal Credits Model (UCM) |
| Standard Rate | 25% of eligible OCI spend returned as support credits |
| ULA Rate | 33% of eligible OCI spend returned as support credits |
| Credit Expiry | 12 months after issuance โ use them or lose them |
For the complete OCI licensing framework, see Oracle OCI (Cloud Infrastructure) Licensing.
2. How Support Credits Accumulate
Support Reward credits accumulate based on your monthly OCI consumption following a clear formula. Oracle tallies your eligible OCI usage at the end of each month and deposits the corresponding credits into your rewards account.
| Customer Type | Credit Rate | Example: $100K/month OCI | Annual Credits |
|---|---|---|---|
| Standard OCI customer | 25% of eligible spend | $25,000/month | $300,000 |
| ULA customer | 33% of eligible spend | $33,000/month | $396,000 |
The system is dynamic: higher OCI usage means more credits, with no upper limit on how much you can earn. However, there are critical rules to keep in mind.
3. Eligible OCI Services and Spend Categories
Almost all core OCI services count toward earning credits. Oracle has deliberately broadened the programme so that typical enterprise cloud workloads will qualify. The important exceptions are limited to third-party marketplace offerings and Oracle SaaS applications.
| OCI Service Category | Rewards Eligible? | Examples |
|---|---|---|
| Compute | โ Yes | VMs, bare metal, container instances, GPU compute |
| Storage | โ Yes | Block storage, object storage, file storage, archive |
| Database Services | โ Yes | Autonomous Database, Exadata Cloud, DB Cloud Service |
| Networking | โ Yes | Data egress, load balancing, VPN, FastConnect |
| Platform / PaaS | โ Yes | Integration, analytics, monitoring, AI/ML services |
| Oracle SaaS Applications | โ No | Cloud ERP, HCM, CX โ separate from OCI infrastructure |
| Third-Party Marketplace | โ No | VMware solutions, partner services, ISV offerings |
Need help building an OCI migration plan that maximises Support Rewards?
Oracle Contract Negotiation โ4. Which Support Bills Can Be Reduced
Support Rewards are designed to offset the maintenance fees for Oracle technology products โ the yearly "Software Update Licence & Support" costs that consume a significant portion of IT budgets. Understanding exactly what qualifies (and what does not) is critical for financial planning.
| Support Fee Type | Eligible for Rewards? | Notes |
|---|---|---|
| Database support (EE, SE2) | โ Yes | Core target โ Oracle Database licence support fees |
| Middleware support (WebLogic, SOA, etc.) | โ Yes | Technology middleware product support fees |
| Oracle Cloud@Customer (tech support) | โ Yes | UCM portion of Cloud@Customer support charges |
| Options and Packs support | โ Yes | Support for Partitioning, Advanced Security, RAC, etc. |
| Oracle Applications support (ERP, HCM) | โ No | Enterprise application support is excluded |
| Consulting or services fees | โ No | Cannot use credits for professional services |
| New licence purchases | โ No | Credits are for support reduction only, not licence acquisition |
5. Support Rewards vs Traditional Discounts
It is important to understand how Support Rewards compare with traditional Oracle discount negotiations. The two models work fundamentally differently โ and have different strategic implications for CIOs.
| Dimension | Support Rewards | Traditional Discount |
|---|---|---|
| How savings are obtained | Earned dynamically through OCI consumption | Negotiated once during a deal or renewal |
| Scalability | Savings grow as OCI usage grows โ no cap | Fixed percentage โ does not increase without renegotiation |
| Negotiation required | None โ automatic once enrolled | Significant โ requires leverage, timing, and expertise |
| Timing | Ongoing and continuous | One-time, typically locked at contract signing |
| Dependency | Requires active OCI consumption | No ongoing requirement โ discount applies regardless |
| Oracle's motivation | Drives cloud adoption (OCI revenue growth) | Retains the customer or closes a deal |
6. Impact on Total Cost of Ownership
When evaluating the total cost of ownership (TCO) of Oracle systems, Support Rewards add a new dimension. By moving workloads to OCI and leveraging Support Rewards, you create a feedback loop that lowers part of your TCO.
| TCO Component | Without Support Rewards | With Support Rewards |
|---|---|---|
| Oracle licence cost | One-time or ULA fee | Same โ no change |
| Annual support | 22% of licence value (fixed) | Reduced by 25โ33% of OCI spend |
| OCI cloud costs | N/A (on-premises) | New cost, but partially "returned" as support credits |
| On-premises infrastructure | Hardware, power, facilities | Reduced as workloads move to OCI |
| Net TCO over 3 years | Stable or rising | Declining as support savings accumulate |
๐ฐ The Financial Feedback Loop
You incur OCI costs (new if previously on-premises), but simultaneously reduce Oracle support costs by applying earned credits. Over multi-year periods, the cumulative support reduction can be significant โ translating into a substantially lower TCO. The ROI for migrating to OCI improves because some cloud spending is effectively "returned" via support savings. If you know your planned OCI spend, you can predict support credit accrual โ bringing predictable offset patterns into financial planning.
Maximise Your Oracle Support Savings
Our independent advisers help enterprises model Support Rewards scenarios, negotiate complementary discounts, and structure OCI migrations for maximum financial benefit โ all without ties to Oracle.
7. Example Scenario: Rewards in Action
To illustrate the financial impact, consider two scenarios โ a standard customer and a ULA customer โ both with the same OCI spend and support bill.
Setup: Manufacturing company with $600,000/year in Oracle Database and WebLogic support. They migrate several workloads to OCI, spending $100,000/month on eligible OCI services.
Credit accumulation: $100,000 ร 25% = $25,000/month โ $300,000 in credits per year.
Support reduction: $600,000 annual support โ $300,000 credits = $300,000 effective support cost.
Result: A 50% reduction in Oracle support costs, achieved simply by running existing workloads on OCI instead of on-premises infrastructure.
Setup: Same company profile, same $600,000/year support, same $100,000/month OCI spend โ but this organisation has an Oracle Unlimited Licence Agreement (ULA).
Credit accumulation: $100,000 ร 33% = $33,000/month โ $396,000 in credits per year.
Support reduction: $600,000 annual support โ $396,000 credits = $204,000 effective support cost.
Result: A 66% reduction in Oracle support costs โ nearly two-thirds of the annual support bill eliminated through OCI usage credits.
| Metric | Standard (25%) | ULA (33%) |
|---|---|---|
| Monthly OCI spend | $100,000 | $100,000 |
| Annual OCI spend | $1,200,000 | $1,200,000 |
| Annual credits earned | $300,000 | $396,000 |
| Original support bill | $600,000 | $600,000 |
| Support after credits | $300,000 | $204,000 |
| Effective support discount | 50% | 66% |
For broader OCI vs other cloud licensing economics, see OCI vs AWS for Oracle Workloads (Licensing).
8. Hidden Catches and Limitations
While Support Rewards are genuinely valuable, CIOs should understand the programme's limitations and strategic implications before building business cases solely around it.
- Credits expire after 12 months. Unused credits are permanently lost. If your support renewal timing does not align with your credit accumulation, you can waste significant value. Plan OCI consumption to generate credits before major support invoice dates.
- Credits only apply to technology support. You cannot use rewards for Oracle Applications support (E-Business Suite, Fusion, etc.), consulting fees, new licence purchases, or training. The scope is limited to database and middleware support contracts.
- The programme requires active OCI consumption. Idle accounts, free trials, and minimal usage generate minimal credits. You must actively run workloads on OCI โ this is not a passive benefit. If your OCI adoption stalls, so do your savings.
- Oracle is the primary beneficiary. Support Rewards are designed to drive OCI adoption. Oracle gains recurring cloud revenue in exchange for reducing support fees that customers increasingly resent. While the savings are real, the programme deepens your Oracle dependency โ shifting workloads to OCI makes it harder to exit the Oracle ecosystem later.
- Third-party support becomes less attractive. One effect of Support Rewards is that the economics of switching to third-party Oracle support (Rimini Street, Spinnaker, etc.) become less compelling if your OCI usage already reduces support costs significantly. Oracle has designed this programme partly to counter third-party support alternatives.
- Credits do not reduce the support base. Rewards offset the payment, not the underlying support fee structure. Your contractual support obligation remains the same โ you are simply paying part of it with credits. If you stop using OCI, the full support bill returns immediately.
Want to reduce Oracle support costs permanently โ not just offset them?
Oracle Licence Management Services โ9. Planning a Cloud Migration with Rewards in Mind
Factoring Support Rewards into your OCI migration strategy from the beginning maximises financial value. Here is a structured approach.
Map Support Contracts
Identify every Oracle technology support contract eligible for credit redemption. Note amounts and renewal dates.
Prioritise Workloads
Select workloads that generate significant OCI consumption โ prioritise those with high support costs attached.
Forecast Credit Accrual
Model OCI spend by month/quarter and calculate expected credits against support renewal schedules.
Align with Billing Cycles
Time migrations so credits accumulate before major support invoices โ maximising redemption value.
Track & Optimise
Monitor cumulative savings, adjust migration pace, and demonstrate ROI to stakeholders.
| Planning Step | Output | Why It Matters |
|---|---|---|
| Support contract mapping | Catalogue of eligible fees with amounts and dates | Sets the target for how much credit you need to generate |
| Workload prioritisation | Migration plan linking workloads to OCI services | High-spend workloads generate the most credits |
| Credit forecast | Multi-year model of OCI spend vs support credits | Enables budget planning and ROI demonstration |
| Billing alignment | Migration timeline synced to renewal dates | Prevents credits from expiring before they can be used |
For BYOL strategies that complement Support Rewards, see Oracle BYOL on OCI Explained and the CIO Playbook: Oracle Cloud (OCI) and BYOL Licensing Strategy.
Structure Your OCI Migration for Maximum Savings
Our Pay-When-We-Saveโข model means we earn our fee from the savings we deliver. We model your Support Rewards opportunity, optimise your migration timeline, and negotiate complementary discounts.
10. Governance for Support Rewards Tracking
Once leveraging Support Rewards, governance and oversight are essential to capture the full value. Without active management, credits can expire unused and savings can slip through the cracks.
| Governance Task | Frequency | Impact on Savings |
|---|---|---|
| Track OCI spend โ verify consumption matches expected credit generation | Monthly | Ensures credit accuracy โ you earn what you should for every OCI dollar |
| Monitor credit balance & expiry โ use Oracle's Support Rewards dashboard | Monthly | Prevents credit expiry โ identify credits at risk and plan redemption |
| Verify credit application โ confirm credits are applied to invoices correctly | Each billing cycle | Guarantees correct redemption โ no credits left unapplied |
| Synchronise with finance โ ensure finance teams account for credits in budgets | Quarterly | Aligns budget and payments โ finance applies credits to reduce cash outlay |
| Document everything โ record credits earned, applied, and savings realised | Ongoing | Audit trail for internal reporting and Oracle discussions |
11. Expert Recommendations for CIOs
- Layer rewards on top of negotiated discounts. Do not accept Oracle's suggestion that Support Rewards replace traditional support discounts. Negotiate the best possible support discount first, then apply Support Rewards on top. The two are complementary โ use both for compounding savings.
- Model the full financial picture before committing to OCI. Build a 3โ5 year financial model that includes OCI costs, Support Rewards credits, support reduction, and on-premises infrastructure decommissioning. Ensure the net TCO is genuinely lower โ not just shifted from support to cloud bills.
- Align migration timing with support billing cycles. Front-load OCI migrations so credits accumulate before major support renewals. This maximises the credits available when invoice payment is due.
- Pursue structural support reduction alongside rewards. Eliminate unused licences, consolidate databases, and reduce your support base permanently. These savings persist even if you reduce OCI usage later โ unlike reward credits, which require ongoing OCI spending.
- Understand the lock-in implications. Support Rewards create a financial incentive to maintain and grow OCI usage. Factor this into your multi-cloud strategy and exit planning. The programme is designed to deepen Oracle ecosystem commitment.
- Establish governance from day one. Assign a Support Rewards owner, implement monthly tracking, and synchronise with finance. Credits expire after 12 months โ without active management, savings are at risk.
- Evaluate ULA status carefully. ULA customers receive the higher 33% rate. If you are approaching a ULA renewal or certification, factor the enhanced Support Rewards benefit into your ULA certification strategy.
- Engage independent expertise. Oracle sales teams will promote Support Rewards as part of OCI deals. An independent adviser can model the actual savings, identify risks, and ensure you are not overpaying for OCI to generate credits that do not fully offset the cost.
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