Oracle Contracts

What is the Oracle OMA? A Comprehensive Guide

What is an Oracle OMA? – ( Oracle Master Agreement ) The Oracle OMA is a crucial document outlining the terms and conditions for using Oracle’s software, hardware, and cloud services.

This article aims to simplify the understanding of Oracle OMA, focusing on software programs and how they can be used within your business.

What is Oracle OMA?

what is an oracle oma

Oracle OMA is a contractual document that contains general terms for hardware, software programs, cloud services, and more.

The OMA outlines the rights granted to you, the purchaser, for using Oracle software.

Critical Points in Oracle OMA

Critical Points in Oracle OMA

1. Internal Business Use Only

The OMA stipulates that Oracle software can only be used for internal business purposes. For instance, this would not be allowed if you work at an energy company and you and four other energy companies decide to share one server and licenses.

The licenses are only for your company’s use. However, Oracle does allow agents, contractors, partners, and suppliers to use the software, meaning you don’t need a license for these users.

2. Trial Usage

The OMA provides terms for trial usage of Oracle software. However, the terms for trial usage are pretty restrictive, so it’s essential to understand them before downloading Oracle software for trial purposes.

3. Annual Support Costs

The OMA describes the annual support costs. Typically, Oracle support will increase by a few percentage points every year. The standard increase in most countries is 4-8%, but it can be as high as 10% in some parts of the world.

4. Vendor Lock-in Policies

The OMA contains policies that I refer to as vendor lock-in policies. For instance, the technical support policy states that you must have all licenses under support or nothing.

If you have multiple Oracle license agreements and one day decide not to pay maintenance on one of them, this would not be allowed per the Oracle Master Agreement.

5. Audit Clause

The audit clause in the OMA outlines how an audit is conducted, when, and by whom. Upon 45 days written notice, Oracle may audit your use of the software.

You agree to cooperate with Oracle’s audit and provide reasonable assistance and access to information. The audit should not unreasonably interfere with your normal business operations.

Oracle OMA and License Management

If you’re a license manager or a licensing professional, it’s essential to understand the audit clause in the OMA.

If Oracle audits you, the first thing you should do is review the audit clause. Understanding the clause will help you prepare for the audit and potentially negotiate more favorable terms.

It’s also important to note that Oracle is more likely to negotiate license terms per order than the OMA.

Large Oracle customers may have hundreds of Oracle ordering documents and potentially 20 different OMAs containing different terms. This can make license management exceptionally challenging.

Oracle OMA: A Word of Caution

Oracle typically treats the OMA as a standard auto-accept or auto-sign document. However, reviewing the OMA and understanding the terms is crucial before signing.

If you’re considering purchasing Oracle software, reviewing the OMA and contract terms at least one month before Oracle’s quarter end is recommended.

If you do not have an active OMA, do not sign one if you make a small purchase, as it might impact future license rights. If you identify a contract term in your OMA that you want to change, you can try to renegotiate that specific license term the next time you make a purchase. This way, you’re fixing any contract issues proactively.

Conclusion

Understanding the Oracle OMA is crucial for any business using Oracle software. It outlines your rights and responsibilities as a user of Oracle software and provides essential information about trial usage, annual support costs, vendor lock-in policies, and the audit clause.

Remember, the OMA is a legally binding document, and it’s essential to understand its terms before signing.

If you’re unsure about any aspect of the OMA, consider seeking legal advice or consulting with a licensing professional.

FAQs on Oracle OMA

What is Oracle OMA?

Oracle OMA is a contractual document that contains general terms for hardware, software programs, cloud services, and more.

What does the Oracle OMA stipulate about the use of Oracle software?

The OMA stipulates that Oracle software can only be used for internal business purposes. You cannot use these licenses to build your Software as a Service (SaaS) solution.

What does the Oracle OMA say about trial usage?

The OMA provides terms for trial usage of Oracle software. However, the terms for trial usage are pretty restrictive.

What does the Oracle OMA say about annual support costs?

The OMA describes the annual support costs. Typically, Oracle support will increase by 4-8 percentage points every year.

What is the audit clause in the Oracle OMA?

The audit clause in the OMA outlines how an audit is conducted, when, and by whom. Upon 45 days written notice, Oracle may audit your use of the software.

Remember, understanding the Oracle OMA is crucial for effective license management. If you need help or have questions, please contact Redress Compliance.

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.