Oracle Support Rewards is an incentive program offered by Oracle to customers who use Oracle OCI and have on-premise technology contracts under active support.
- If you have an active support contract for on-premise software licenses (technology)
- If you have an OCI contract (annual-flex)
- You can claim 25% of every dollar you spend on Oracle OCI after 12 months.
- It is important to note that you need to consume the OCI spend and that it is not an automatic process.
Oracle Support Rewards
Oracle Support Rewards is a program that benefits existing Oracle software license customers. It offers a straightforward way to reduce Oracle support costs.
Here’s how it works:
- Reduction in Support Costs
- Customers with non-ULA licenses can reduce Oracle support costs by 25%. The reduction is even more significant for customers with ULA licenses at 33%.
- Spending and Savings
- If you spend 1 million dollars on Oracle Cloud Infrastructure (OCI) services in 12 months and consume that amount, you can apply the percentage reduction to your support fees. You pay less for active support contracts if you deploy and use Oracle Cloud, including cloud at-customer solutions.
- Earning Rewards
- OCI customers can earn rewards on any workload, even from third-party applications. These credits can then be applied toward on-premise Oracle technology support fees.
- Benefit for All
- All workloads can accumulate rewards on OCI, which benefits Oracle as more workloads mean more fees. This creates a win-win situation for both Oracle and the customers.
In simple terms, Oracle Support Rewards is a program with no lock-in or downside. It provides a valuable opportunity for Oracle customers to reduce their support costs.
How do you use the Oracle Support Reward Program?
Step-by-Step Guide to Using Oracle Support Rewards Program
- Purchase Oracle Cloud Infrastructure Services (OCI)
- Start by purchasing Oracle Cloud Infrastructure services. This purchase allows you to earn Oracle Support Rewards.
- Earn Oracle Support Rewards
- With every purchase of OCI services, you earn Oracle Support Rewards, credits that can be applied to your technology support fees.
- Apply Credits to Open Invoices
- You can apply these earned credits to open invoices for technology support fees. This reduces the amount you have to pay for support.
- Track Your Discounts
- Use the Oracle Cloud Console to track your discounts. This helps you monitor how much you’re saving through the program.
- Redeem Your Rewards
- You can redeem these rewards up to 12 months after earning them, giving you ample time to use them.
- Negotiate Better Rates with Universal Credits
- The program also provides a way to negotiate better rates with Universal Credits, similar to Oracle’s subscription-based licensing agreement.
- Spend a Minimum Amount
- To get the maximum discount, you must spend at least $1,000 monthly for the first year. If you spend less than this, you will lose your balance and be charged an overage fee.
- Apply Your Support Rewards
- When you apply your support rewards to your support bill, you will receive an email confirming that you are paying less. Remember, the amount is pre-tax and will not offer you a reduction in VAT.
Following these steps, you can use the Oracle Support Rewards Program to reduce your technology support fees.
Review of Oracle Support Rewards Program
The Oracle Support Rewards Program is designed to help Oracle customers reduce their support costs by utilizing Oracle Cloud Infrastructure (OCI) services.
This review aims to provide a balanced program overview, highlighting its advantages and disadvantages.
Pros:
- Cost Savings: One of the most significant advantages is the potential for savings on Oracle support fees. For organizations already investing in or planning to migrate to OCI, the program can offer a tangible return on investment by reducing ongoing support costs.
- Flexibility: The program offers flexibility in how rewards are earned and applied, allowing organizations to accrue savings based on OCI usage. This can be particularly beneficial for companies with varying cloud consumption patterns.
- Incentive for Cloud Migration: For companies considering cloud migration, the rewards program can serve as an additional incentive to transition to OCI, leveraging Oracle’s cloud capabilities while enjoying cost savings.
- Simplicity in Application: Accruing and applying rewards is relatively straightforward once enrolled. Oracle calculates rewards based on monthly OCI consumption and automatically applies them to eligible support invoices.
Cons:
- Eligibility Restrictions: The rewards program is not open to all Oracle services. Notably, Oracle SaaS services and certain types of Oracle application licenses and support do not qualify for savings, which may limit the program’s appeal to some customers.
- Complexity for ULA Customers: The eligibility criteria for customers with an Oracle Unlimited License Agreement (ULA) that includes ULA2PaaS rights can be complex. Utilizing ULA2PaaS rights disqualifies them from the program unless they renegotiate their ULA, potentially complicating their licensing and support strategy.
- Limited Regional Availability: The program is not available in all regions, such as China and the US Federal Public Sector, restricting access for organizations operating in these areas.
- Pre-Tax Savings Only: The program applies savings to the pre-tax amount of support invoices, which may affect the total savings for organizations in regions with high tax rates.
Conclusion:
The Oracle Support Rewards Program presents a valuable opportunity for organizations looking to reduce their Oracle support costs by adopting or expanding OCI services.
While the program offers compelling benefits in cost savings and incentives for cloud migration, potential participants should carefully consider the eligibility criteria and regional availability to ensure it aligns with their specific needs and circumstances.
Understanding these factors will help organizations maximize the program’s benefits while navigating its limitations.
How do Oracle ULA customers benefit?
The discount rate is 33% for Oracle ULA customers. If you spend 100,000 USD from your Oracle ULA, your Oracle support bill will be reduced by $33,000.
How to use the Oracle support program?
- You can use it for Oracle BYOL licensing.
- You can use it to purchase Oracle OCI services, including database and middleware.
- Take your Oracle ULA agreement as BYOL and receive 33% in return.
Who is Not Eligible for OCISupport Rewards?
Certain conditions and types of Oracle services do not qualify for OCI Support Rewards. Here’s a clearer breakdown:
- Oracle Application Licenses and Support: Savings cannot be applied to the support fees for Oracle application licenses.
- Oracle SaaS Services: Purchases of Oracle SaaS services do not qualify for support reductions under this program.
- Oracle ULA with ULA2PaaS: If you have an Oracle Unlimited License Agreement (ULA) with rights to ULA2PaaS and have already used those rights, you are ineligible for the program. To become eligible, you would need to renegotiate your ULA agreement.
- Pre-Tax Value Claims: It’s important to note that all support savings claims are based on the services’ pre-tax value.
Understanding these exclusions can help you better navigate the Oracle Support Rewards program and identify where you can and cannot expect to see savings.
Who Should Consider the Oracle Support Rewards Program?
The Oracle Support Rewards program is particularly beneficial for any Oracle customer who:
- Has Technology Software Licenses
- If you have Oracle technology software licenses and are considering migrating your Oracle workload to a public cloud platform, this program is for you.
- Plans to Move to Oracle Cloud
- Oracle offers a reduction in support bills if you move to its cloud, a benefit not provided by AWS.
Important Considerations
- Validity of the Program
- Before calculating a business case that includes support rewards, ensure the support rewards program is valid for several years. Ask Oracle to include contract language about the program’s validity.
- Manage the Program
- Oracle will not automatically apply the support rewards for you. You must manage the program and submit the reward to get your refund.
Oracle Support Rewards FAQ
1. What is the Oracle Support Rewards Program?
- It’s a program for Oracle’s on-premises software customers who use Oracle Cloud Infrastructure (OCI) services. It allows them to earn rewards toward their support fees based on OCI usage.
2. Who qualifies for the Oracle Support Rewards?
- Customers with new Universal Credits orders for OCI services, excluding OCI Pay As You Go customers.
3. Is the Oracle Support Rewards Program available everywhere?
- It’s available in most regions but not in China or the US federal Public Sector.
4. How do I join the Oracle Support Rewards Program?
- Request an eligible Cloud Universal Credits Ordering Document from your cloud sales rep, which includes enrollment terms.
5. Can BYOL services utilize the program?
- Yes, BYOL on the Universal Credits Model is eligible.
6. What about ULA customers with ULA2PaaS rights?
- You cannot use both ULA2PaaS and Oracle Support Rewards. You may need to amend your ULA if you prefer the Support Rewards program.
7. Are Oracle applications supported by this program?
- No, but incentives might be available for moving applications to the cloud. Contact your cloud applications rep for more details.
8. Do all OCI services accrue rewards?
- Most do, except for services involving third parties like VMware or those from the Oracle Cloud Marketplace.
9. Can rewards be earned for Oracle SaaS usage?
- No, Oracle Cloud Applications usage does not accrue rewards.
10. Is Oracle Cloud@Customer eligible for rewards?
- Only the portion delivered under UCM is eligible, not the base rack subscription.
11. Are promotions or Free Tier services eligible for rewards?
- No, these services do not qualify for the program.
12. Will I earn rewards if I buy UCC through a reseller?
- Yes, rewards are earned based on the “Sold to” on the UCM order.
13. What if my technology license support is through an Oracle Support Renewal Partner?
- You can authorize the redemption of rewards through your Oracle Support Renewal Partner.
14. How are rewards calculated and accrued?
- Rewards are calculated monthly based on OCI consumption and your specific accrual rate.
15. What are the accrual rates?
- Rates are 33% for ULA customers and 25% for others, based on OCI service consumption.
16. When are Oracle Support Rewards earned?
- At the end of each month, based on that month’s OCI consumption.
17. How long are rewards valid?
- For 12 months from the accrual date. Unused rewards expire after this period.
18. Is there a limit on reward accrual?
- No, there’s no cap on the amount you can accrue.
19. Where can I view my accrued rewards?
- The OCI console is under “Billing & Cost Management” and “Support Rewards.”
20. Can rewards be used towards a tax on support invoices?
- No, rewards apply only to the pre-tax amount of invoices.
21. How are rewards redeemed?
- In the order of their expiry dates.
22. Can rewards be extended beyond 12 months?
- No, rewards are valid for 12 months and cannot be extended.
23. Are subscription-based Oracle technology products eligible?
- Rewards are for Software Update License & Support fees, not subscription-based products.
Analysis/Comment on Oracle Support Rewards
Oracle Support Rewards benefit Oracle Cloud Infrastructure (OCI) users by providing a rebate on support costs.
Here’s a straightforward analysis:
- There is no downside to Enrollment. If you’re already using Oracle OCI services, enrolling in the Support Rewards Program is a no-brainer. The possibility of claiming money back on support fees is an opportunity you shouldn’t pass up.
- Active Management Required: Credits from the Support Rewards Program aren’t automatic. Users must actively manage and apply for them, or they’ll miss out on potential savings.
- Uncertainty Around Program Stability: Relying heavily on the Support Rewards Program for long-term financial planning is risky. Oracle could alter or discontinue the program at any time, affecting your business case.
- Contract Negotiation Opportunity: When negotiating contracts with Oracle, include a clause requiring participation in the Support Rewards Program to ensure access to the program’s benefits.
- Minor Influence on Decision Making: While the Support Rewards Program offers some financial incentives, it’s unlikely to be a major factor in moving to Oracle Cloud. It serves more as a secondary benefit rather than a primary motivator.
In summary, while the Oracle Support Rewards Program offers tangible benefits, it requires active management. It shouldn’t be solely relied upon for long-term financial planning due to the potential for changes in the program.
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