Introduction to Oracle License Reseller
An Oracle license reseller can be a valuable partner when purchasing Oracle software. They offer a range of benefits, from discounts to flexible payment terms.
However, like any business decision, weighing the pros and cons before proceeding is essential.
What is an Oracle Software Reseller?
An Oracle software reseller is a company that purchases Oracle licenses at a discount and then resells them to end customers. These resellers are typically part of Oracle’s Partner Network and have a deep understanding of Oracle’s products and licensing structures.
How do Oracle Resellers Get Paid?
Unlike Microsoft resellers, who receive direct incentives or bonuses from Microsoft, Oracle resellers make their profit from the re-sell margin on the license transaction. Oracle does not pay its resellers in the same way.
Oracle Resellers Benefits
Oracle resellers receive a minimum 30% discount per transaction, regardless of the purchase size. This discount can increase based on the transaction value.
The reseller can also negotiate with Oracle for a higher discount. The margin passed on to the end customer is determined by the reseller.
Oracle Resellers Bonus Opportunity
Oracle resellers can log opportunities in Oracle CRM systems as a resell or a referral. A resale means they get an additional 3-5% discount from Oracle.
A referral means they are simply informing Oracle sales about an opportunity. Therefore, end customers should be cautious about what they disclose to any Oracle partner or reseller.
Oracle Resellers Cons
The reseller is contractually obliged to cooperate with Oracle sales and inform them about their activities and potential opportunities.
Our experience is that resellers often have a close relationship with Oracle and frequently share information about opportunities without the end customer’s knowledge.
Oracle Technical Support
Oracle Technical support is in the first year sold by the reseller (license + 1st year of support); however, the 2nd year renewal is done directly with Oracle.
End customers can ask Oracle to quote them support via the reseller. However, the reseller cannot add their margin to the support renewal.
Should You Buy via a Reseller?
An Oracle reseller can grant you a 30% discount or more, regardless of the specifics involved, including audits. They can also offer payment terms for more extended than Oracle’s standard 30 days.
However, it’s crucial to consider the potential downsides, such as sharing information with Oracle sales, before deciding to work with a reseller.
Who are the best Oracle license resellers?
We generally recommend you contract with an Oracle reseller who has former Oracle staff on their team, preferably former Oracle sales reps.
They will make sure you get the most optimal contract terms and pricing. They can also help you negotiate high discounts. The large Microsoft resellers do not have these on their staff and are staffed by 95% of Microsoft employees and contractors with limited knowledge about Oracle.
Working with an Oracle license reseller can offer significant benefits, including discounts and flexible payment terms.
However, it’s essential to be aware of the potential downsides and carefully consider your options before deciding.
As always, do not purchase any new licenses unless you know your licensing position, as you may have spare licenses; conducting an Oracle license review is crucial before you purchase licenses from Oracle or via an Oracle license reseller.