Oracle cloud

Oracle Universal Credits Negotiation – A Seven Step Guide

Navigating the complexities of Oracle Universal Credits Negotiation can be daunting for many organizations.

With the rise of cloud services, understanding how to negotiate your contract effectively is crucial to optimizing your investment and ensuring your organization’s needs are met.

This article will provide a comprehensive guide on approaching Oracle Universal Credits Negotiation, highlighting key strategies, common pitfalls to avoid, and best practices to adopt.

Oracle Universal Credits Negotiation – 7 Steps to Negotiating Your Cloud Contract

7 steps to negotiating an Oracle Universal Credits contract

Step 1: Understand Your Needs

Before you begin negotiations, it’s crucial to understand your organization’s needs. This includes knowing how much you will consume, the size of the instances, and when you will go live. If you have an existing maintenance contract, consider that as well.

Step 2: Research Oracle’s Pricing and Contract Models

Familiarize yourself with Oracle’s pricing structure and contract models. Understand the difference between pay-as-you-go and Annual Flex models. Remember that the Annual Flex model requires a minimum commitment of $100,000 yearly to receive a discount.

Step 3: Model and Project Your OCI Consumption

Use a tool to help you project future consumption, monitor your consumption levels, and provide alerts if you are projected to over-consume. This will help you decide when is the right time to switch over to Annual Flex and how much you should commit to it.

Step 4: Consider Oracle Support Rewards

If you’re an existing Oracle customer, consider the Oracle Support Rewards program. This program gives you 25% back on what you’re paying in maintenance for every dollar you spend on Oracle Cloud.

Step 5: Begin Negotiations

Once you clearly understand your needs and Oracle’s offerings, begin negotiations. Remember that the goal is to align the contract with your organization’s needs and usage. Don’t be afraid to ask for discounts or additional benefits.

Step 6: Review the Contract

Before signing anything, review the contract thoroughly. Make sure you understand all the terms and conditions. If anything is unclear, ask for clarification.

Step 7: Monitor Your Consumption

After the contract is signed, continue to monitor your consumption levels. If you’re over-consuming, consider renegotiating your contract or switching to a different model.

Remember, every organization’s needs are different, so what works for one might not work for another. Understanding your organization’s specific needs and negotiating a contract that best meets those needs is important.

FAQs on Oracle Universal Credits

What are Oracle Universal Cloud Credits?

Oracle Universal Cloud Credits are a form of digital cloud currency used to purchase and consume Oracle cloud services.

What contract models are available for Oracle Universal Cloud Credits?

Oracle offers two contract models: Pay-as-you-go and Annual Flex.

What is the Pay-as-you-go model?

With the Pay-as-you-go model, you pay monthly for what you consume without committing to how much you will spend on Oracle Universal Cloud Credits.

What is the Annual Flex model?

The Annual Flex model is a prepayment or pre-commitment to Oracle where you commit annually to spending a certain amount.

What is the minimum commitment for the Annual Flex model to receive a discount?

The minimum commitment to receive a discount in the Annual Flex model is $100,000 annually.

What happens if I do not consume the committed amount in the Annual Flex model by the end of the 12 months?

You will lose the remaining amount if you do not consume the committed amount by the end of the 12 months.

What is the Oracle Support Rewards program?

The Oracle Support Rewards program gives you 25% back on what you’re paying in maintenance for every dollar you spend on Oracle Cloud.

How can I project my OCI consumption?

You can use a tool that helps you project future consumption, monitor your consumption levels, and provide alerts if you are projected to over-consume.

When should I switch over to the Annual Flex model?

You should switch to the Annual Flex model when your projected consumption reaches a level where the Annual Flex model becomes more cost-effective than the Pay-as-you-go model.

Can I negotiate for discounts or additional benefits in my Oracle Universal Cloud Credits contract?

Yes, you can arrange for discounts or additional benefits in your contract. The goal is to align the contract with your organization’s needs and usage.

What should I consider before starting Oracle Universal Credits Negotiation?

Before starting negotiations, understand your organization’s needs, including how much you will consume, the size of the instances, and when you will go live.

What should I do if I'm over-consuming?

If you’re over-consuming, consider renegotiating your contract or switching to a different model.

What happens if I'm not ready to make a minimum commitment of $100,000 yearly for the Annual Flex model?

The Pay-as-you-go option might be better if you’re not ready to commit.

Can I use Oracle Universal Cloud Credits to purchase Oracle SaaS services?

No, Oracle Universal Cloud Credits can only purchase compute cloud services, not Oracle SaaS services.

Can I switch from the Pay-as-you-go model to the Annual Flex model at any time?

Yes, you can switch from the Pay-as-you-go model to the Annual Flex model when your projected consumption reaches a level where the Annual Flex model becomes more cost-effective.

What are the benefits of the Annual Flex model?

The Annual Flex model can discount upfront purchases and support rewards if you’re an existing Oracle customer and other bonuses.

What are the advantages of the Pay-as-you-go model?

The Pay-as-you-go model is a good option if you’re unsure of how much you will spend on Oracle Cloud, the amount is quite low, or you’re just getting started with Oracle Cloud and are uncertain when you will start consuming Universal Cloud Credits.

What should I do before signing an Oracle Universal Cloud Credits contract?

Before signing anything, review the contract thoroughly. Make sure you understand all the terms and conditions. If anything is unclear, ask for clarification.

How can I optimize my Oracle Universal Cloud Credits contract?

To optimize your contract, understand your organization’s specific needs, negotiate a contract that best meets those needs, and continuously monitor your consumption levels. If you’re over-consuming, consider renegotiating your contract or switching to a different model.

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.