Here’s something Oracle’s renewal team would prefer you didn’t know: the renewal process isn’t a negotiation – it’s a campaign. And like any campaign, the side that prepares earlier and more thoroughly almost always wins.
If you’re approaching the end of your Oracle ULA term, this guide covers exactly when to start, what to do at each stage, and the tactics Oracle will use to keep you locked in. For a broader ULA context, start with our Oracle ULA Complete Guide
The 18-Month Renewal Timeline
I tell every client the same thing: if your ULA expires in December, your renewal project starts in June of the previous year. Here’s why – and what to do at each stage:
What Oracle Won’t Tell You About Renewals
Your Support Stream Is Their Leverage
Oracle makes approximately 50% of its software revenue from support renewals. Your annual support fees – running at 22% of your licence value – are Oracle’s most profitable revenue stream. They will structure your renewal to maximise this ongoing annuity, not to give you the best deal.
The “Uplift” Isn’t Fixed
Oracle reps will present renewal pricing as if there’s a standard percentage increase. There isn’t. I’ve seen renewals range from 0% uplift to 25%+. The number you get depends entirely on how well you’ve prepared and whether Oracle believes you’ll actually leave.
Bundled OCI Deals Hide the True Cost
Oracle is increasingly bundling OCI consumption commitments into ULA renewals. These deals can look attractive – “we’ll discount your ULA if you commit to $X in OCI spend.” But look at the total cost of ownership over five years. Nine times out of ten, the combined cost is higher than renewing the ULA alone and using a competing cloud provider.
| 💡 Negotiation Tip: Oracle’s fiscal year ends May 31st. Quarter-ends (August, November, February, May) create internal pressure for reps to close deals. Time your negotiation to reachthe decision point at a quarter-end, and you’ll see better pricing. |
Renewal vs. Certification: Making the Decision
The renewal decision comes down to a simple question: Will you deploy enough additional Oracle technology in the next three years to justify the ULA premium over standard licensing?
If the answer is yes, renew – but negotiate hard. If the answer is no or maybe, you should seriously consider certifying out of your ULA and locking in your perpetual entitlements. The certification process itself is a powerful negotiation tool, even if you ultimately decide to renew.
Common Renewal Traps to Avoid
- The “lapse” threat: Oracle may imply your licences disappear if you don’t renew. They don’t. You certify, and what you’ve deployed is yours – perpetually.
- Artificial urgency: Phrases like “this pricing expires Friday” are negotiation tactics, not policy. Oracle will always extend a deadline if the deal is large enough.
- Product bundling: Adding new products to the ULA at renewal inflates the deal value and complicates future exits. Only include products you will genuinely deploy at scale.
For the complete negotiation toolkit, including specific counter-tactics for Oracle’s standard plays, see our Oracle Licence Negotiation Playbook
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