Oracle PULA – The Most Risky Enterprise License Agreement

What is an Oracle PULA?

• PULA Oracle is a Perpetual Unlimited License Agreement that allows a company to have unlimited deployment rights for a set of Oracle software products for an unspecified period in exchange for giving up the ability to terminate unused licenses partially.
• PULA offers several benefits, such as Simplified software asset management, elimination of license fees for included products, the ability to deploy Oracle in virtual environments, and a reduced risk of an Oracle audit.
• The main difference between an Oracle ULA and a PULA is that a ULA has a set end date while a PULA does not.

What is PULA Oracle – Perpetual Unlimited License Agreement?

• Oracle PULA grants a company unlimited license deployment rights for a specific set of Oracle software products over an indefinite duration.
• In exchange, the customer relinquishes the flexibility to partially terminate licenses for unused products.
• End Customers select the products for which it want unlimited deployment rights.
• Negotiate the legal entities permitted to use and access the software
• Determine the countries where server deployment is allowed through negotiation

Benefits of the Oracle Perpetual Unlimited License Agreement

• Simplified software asset management
• No more license fees for the included products.
• Enables you to deploy Oracle in virtual environments.
• Reduced risk of an Oracle audit (at least until the PULA ends)

Oracle PULA vs ULA?

In an ordinary Oracle ULA, you are certifying/exiting after your agreement ends and the contract is changed into a volume-based agreement.

While in a PULA, the “unlimited deployment period” never ends, making your PULA agreement different from a normal Oracle ULA.

Certifying Your Oracle Perpetual Unlimited License Agreement (PULA): Three Approaches

Certifying your Oracle PULA (Perpetual Unlimited License Agreement) is essential for compliance and cost optimization.

Here are three methods to obtain certification:

1. Acquisition by Another Company:
   • In the event of acquisition by another company, the acquiring entity assumes responsibility for certifying the Oracle PULA.
2. Addressing Non-Compliance:
   • Non-compliance occurs when a breach of contractual terms is outlined in the Oracle PULA.
   • Corrective action must be taken to align practices with the agreement and achieve certification.
3. Maintaining Total Technical Support (TTS) Stream:
   • Continuously maintaining the TTS stream is crucial for Oracle PULA certification.
   • Failure to uphold the TTS stream may result in the revocation of the Oracle PULA certification.

Effective management is key to obtaining and maintaining certification for your Oracle PULA. Consider the following actions:

• Deployment Tracking: Keep track of your deployments to ensure they align with the terms of your PULA.
• Optimized Infrastructure: Optimize infrastructure deployments, such as IBM LPARs and VMware, to maximize the benefits of your PULA.
• Strategic Management: Effectively manage your Oracle PULA to leverage the agreement’s potential, which may lead to substantial cost savings for your organization.

By following these approaches and effectively managing your Oracle PULA, you can achieve certification, maintain compliance, and unlock significant cost advantages for your organization.

Critical Considerations Before Signing an Oracle PULA

Before finalizing an Oracle PULA (Perpetual Unlimited License Agreement), take these factors into account to make an informed decision:

1. Separate PULAs for Database and Middleware:
   • Consider creating distinct PULAs for Oracle Database and Middleware to enhance flexibility. This allows you to terminate Middleware support while retaining support for Oracle DB if required.
2. Impact of Multiple Legacy Support Agreements:
   • Having multiple legacy support agreements can escalate the cost of Oracle PULAs. Organizations without existing Oracle support agreements may benefit most from PULAs, particularly during divestments.
3. Suitability for Customers with Minimal Legacy Support:
   • Oracle ULAs are better suited for customers with minimal legacy support to be included in the agreement.
4. Public Cloud Considerations:
   • If your customer is transitioning to the public cloud, an Oracle PULA may not be the most appropriate agreement. Public cloud deployments cannot be counted towards certification numbers, and it’s advisable to negotiate different contract languages for cloud deployments before entering into an Oracle ULA.
5. Importance of Terms and Conditions:
   • Carefully evaluate the terms and conditions of an Oracle PULA, as it is one of the most significant agreements with Oracle.
6. Independent Consultant Verification:
   • Unlimited agreements do not come with a predefined price tag. Engaging an independent consultant can help verify that you are not overpaying Oracle.
7. Oracle OCI Support Rewards:
   • If utilizing Oracle OCI (Oracle Cloud Infrastructure), you may qualify for a 33% reduction in support costs through Oracle Support Rewards by purchasing Oracle Universal Cloud Credits.

Considering these factors before signing an Oracle PULA allows you to make well-informed decisions, optimize costs, and ensure the agreement aligns with your organization’s requirements.

Key Contract Terms to Focus on When Signing an Oracle PULA

When signing an Oracle PULA (Perpetual Unlimited License Agreement), pay close attention to the following contract terms and understand their significance:

1. Customer Definition:
   • Ensure the customer definition encompasses all entities accessing your software (SW). This ensures comprehensive coverage and avoids licensing gaps.
2. Territory Clause:
   • Verify that the territory clause covers all territories where you intend to deploy Oracle SW. It should also enable deployment in public cloud zones outside your territory, offering flexibility in cloud deployments.
3. Technical Support:
   • Evaluate options for capping your support fees. Oracle support fees typically increase by 4% annually, and capping can help control costs over time.
4. Merger and Acquisitions (M&A) Considerations:
   • Include provisions to accommodate new entities acquired during the Oracle ULA. This allows the seamless inclusion of acquired entities within the agreement.
5. ULA Certification Clause:
   • Arguably the most critical term, this clause determines the audit process at the end of your Oracle ULA.
   • Ensure the contract language favors your interests by requiring minimal cooperation during audits.
   • Specify how public cloud deployments will be counted and when you should submit licensing data to Oracle.

Focusing on these contract terms when signing an Oracle PULA can mitigate risks, enhance flexibility, optimize costs, and establish terms that benefit your organization.

Oracle PULA Certification: Ensuring Compliance and Exit Process

To achieve Oracle PULA (Perpetual Unlimited License Agreement) certification and navigate the exit process effectively, follow these steps:

1. Review Contract for Certification Rights:

• Thoroughly examine your contract to determine if you have the independent right to commence the Oracle ULA certification process.

2. Negotiate Certification Permission (If Needed):

• If your contract lacks a provision for independent certification, negotiate with Oracle to secure permission to initiate the certification process. The ease of negotiation may vary based on specific details.

3. Seek Assistance for the Termination Process:

• When planning to exit your PULA contract, contact our team for expert guidance in navigating the termination process. The certification process typically involves an Oracle audit.

How to Initiate the Oracle PULA Certification

1. Identify Certification Process Alternatives:

• Examine your contract to identify the available certification process alternatives specified within.

2. Perform Oracle License Measurement:

• Conduct an Oracle license measurement procedure to determine the quantities that must be reported to Oracle. Utilize Oracle LMS Scripts to measure your deployments accurately.

3. Address Noncompliance Issues:

• Address any identified noncompliance issues promptly. It’s common for companies to experience some degree of noncompliance with Oracle software.

4. Optimize Existing Oracle Deployments:

• Leverage virtual platforms such as VMware to optimize your current Oracle deployments, maximizing efficiency and compliance.

5. Initiate Certification and Exit Process:

• After completing steps 2-4, initiate your Oracle PULA agreement’s certification and exit process.

6. Complete Oracle PULA/ULA Certification Documentation:

• Fill out the required Oracle PULA/ULA certification documentation to fulfill the certification requirements.

By following these steps, you can work towards Oracle PULA certification, address noncompliance, optimize deployments, and successfully navigate the process of exiting the PULA agreement.

Oracle ULA vs PULA: Understanding the Differences

When comparing Oracle ULA (Unlimited License Agreement) and PULA (Perpetual Unlimited License Agreement), consider the following aspects:

1. Merger & Acquisitions Considerations:

• Oracle imposes restrictions on how ULAs and PULAs work with mergers and acquisitions.
• ULAs typically allow adding entities up to 10% of your revenue or employee size.
• PULAs require careful consideration if your company plans to engage in mergers and acquisitions.

2. Flexibility of Product Management:

• ULAs offer flexibility to remove or add products during contract renewals.
• PULAs only allow adding products to the contract without the ability to remove any.

3. Vendor Lock-In and Support Contracts:

• ULAs lock all existing support contracts into a single contract, limiting the ability to partially terminate unused software and licenses.
• PULAs aim to lock in support contracts not included in the agreement, restricting flexibility to reduce support and licenses for non-PULA products.

4. Oracle PULA Pricing:

• Pricing for both ULA and PULA is not publicly listed, but PULAs are typically priced 30-50% higher than regular ULAs.
• Oracle believes PULAs provide more value as they involve a one-time license fee, while ULAs require additional license fees upon renewal.

Considering these differences, here’s what it means for you:

• If flexibility is crucial, PULA may not be a suitable agreement for your company.
• PULA’s perpetual, unlimited license agreement has more restrictive language on technical support and termination of unused software and licenses.
• ULA customers should evaluate whether the contract length is the most important criterion for the unlimited period, as longer projected needs can provide higher value with the Oracle PULA.

Understanding these distinctions will help you make an informed decision about which agreement best aligns with your organization’s requirements and goals.

FAQs on Oracle PULA

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