Oracle ULA

Oracle ULA Negotiation: A Step-by-Step Approach

Navigating the complex world of Oracle Unlimited License Agreements (ULAs) can be daunting.

With over 20 years of Oracle ULA management experience, we’ve compiled this comprehensive guide to help you understand and negotiate your Oracle ULA effectively.

Step 1: Understand Oracle ULA Pricing Models

Oracle ULA pricing is far from straightforward. There is no standard ULA price list, and Oracle offers a variety of pricing models for its ULAs. These include:

  • ULA Discount Model
  • ULA Growth Model
  • ULA Budget Pricing Model
  • ULA Historic Spend Model
  • Oracle Audit/Compliance Pricing Model

Understanding these models is crucial to developing a ULA deployment strategy and pricing model that aligns with your business objectives.

Step 2: Debunk Oracle Price List Myths

Oracle’s price list does not necessarily correlate with the value of the software to a customer or the effort required to develop that software. It is designed to:

  • Protect Oracle’s support stream by making it cost-prohibitive to reduce support fees (repricing)
  • Extract the most money from the customer while gaining market share

Step 3: Secure Competitive Oracle ULA Pricing

Secure Competitive Oracle ULA Pricing

Most clients wait for Oracle to tell them what the next ULA will cost. In this scenario, Oracle will use a model that results in a high price. Because Oracle’s ULA pricing is “made up,” it is crucial for the client to create a pricing scenario that is:

  • Reasonable
  • Easy to defend
  • Explainable to Oracle

Analyze all models, pick the most advantageous one, and compare that with the alternatives to the ULA.

Step 4: Time Your Oracle ULA

Time Your Oracle ULA

The timing of when you sign your Oracle ULA can significantly impact its value. ULAs signed at the end of May typically have 28% more value than ULAs signed earlier. The best times to sign are:

  • The last week of May
  • The last week of February
  • Early May
  • Early February
  • Late November

These timings can result in the lowest cost ULA or a similar cost but with more products and better terms.

Step 5: Understand the Terms of Your Oracle ULA

Before entering into a ULA, it’s crucial to understand the terms and conditions. This includes understanding:

  • Customer Definition: List all entities accessing and using any Oracle ULA software.
  • Territory: Define where servers running Oracle ULA software can be physically deployed.
  • ULA Certification Clause: Specify the process for leaving the Oracle ULA agreement.
  • Technical Support: Understand that Oracle technical support increases yearly by 4-8%.
  • Merger & Acquisitions: Understand the restrictions on adding acquisitions or mergers of subsidiaries into the Oracle ULA.

Step 6: Plan for the Oracle ULA Exit

Start planning for the Oracle ULA exit well in advance. This involves understanding the certification process, which includes an Oracle license deployment report and an Oracle audit.

Be prepared for challenges in the certification process, such as:

  • Certifying Oracle deployments in public cloud platforms
  • Calculating Oracle licensing in virtual deployments
  • Identifying all the products installed and used

Step 7: Seek Expert Advice

If you’re unsatisfied with your Oracle ULA pricing or find the process overwhelming, don’t hesitate to contact Oracle licensing experts.

They can provide the guidance and support you need to navigate Oracle ULA pricing and ensure you get the best possible deal.

Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.

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