What is a Hybrid Oracle ULA?
Recently, Oracle has introduced a new variation of its Unlimited License Agreement known as the Hybrid ULA.
This article aims to provide insights into this new offering. You must comprehensively understand your choices for organizations that currently hold an active Oracle ULA or are contemplating one.
The Oracle Hybrid Unlimited License Agreement (ULA) is a relatively new licensing structure that offers a blend of the traditional ULA benefits with added flexibility.
Here’s what you need to know about it.
What is an Oracle Hybrid ULA?
- Unlimited Access: Similar to the traditional ULA, the Hybrid ULA provides unlimited access for a predetermined number of years.
- Fixed Existing Licenses: It allows customers to certify and fix the count of licenses they have from an initial ULA. (If you have an existing ULA)
- New License Fee: A new license fee is involved, akin to the classic ULA.
How is Oracle Hybrid ULA different from Classic ULA?
The Hybrid ULA stands out at the end of the term with two distinct options:
- Certification Option: Like the classic ULA, you report your usage to Oracle. Oracle then converts this reported usage into a fixed quantity of licenses, and the technical support fees are rolled into your overall support contract.
- Non-Certification Option: If you don’t need additional licenses, declare this to Oracle. No new licenses are added post-Hybrid ULA and the technical support fees paid during the term are discontinued.
When is an Oracle Hybrid ULA Beneficial?
- Control Over Support Fee Increases: If you’re facing steep annual increases in technical support fees (8% or more) and wish to continue with Oracle support, the Hybrid ULA can be advantageous. The typical 8% increase does not apply, potentially converting what would be support fee hikes into license fees.
- Short-Term License Needs: It’s ideal for those who need additional licenses in the short term but want to avoid committing to higher technical support fees long-term.
- Flexibility at Term End: The Hybrid ULA provides more flexibility, allowing customers to decide their next steps at the end of the agreement.
- Renegotiation Opportunities: Though rare, the Hybrid ULA could facilitate this process if you want to renegotiate your licensing terms.
Common Mistakes with Oracle Hybrid ULA
- Overlooking Current ULA Benefits: Maximize Before Transitioning: If you already have an Oracle ULA, it’s often more beneficial to fully utilize and certify the existing agreement before considering adding more to your support fees. After 1-3 years, you might find the non-ULA certification option more advantageous.
- Lack of Strategic Planning: Certification vs. Non-Certification: Develop a clear strategy for choosing the certification or non-certification options. Determine which products should be included and outline your deployment phases.
- Misunderstanding the Savings: Non-Certification Benefits: The savings with a Hybrid ULA come into play when you opt for the non-certification option, avoiding the certification of any licenses at the end of the ULA term. If you don’t utilize this option, you might lose out on some of the Hybrid ULA’s benefits and could be better off with a classic Oracle ULA.
Need Expert Help?
If your organization is currently under an Oracle ULA and is seeking clarity on available options, Redress Compliance provides a consultancy service to assist you with:
- Comprehensive Licensing Overview: We’ll deliver a full license position assessment for all your Oracle ULA and non-ULA products.
- Certification Guidance: Our team will support you through each phase of the certification process, including completing Oracle’s required documentation.
- Renewal Strategy Development: Should you be contemplating a renewal, we offer services to craft a ULA renewal strategy, complete with options and benchmarking insights.
- Strategic Planning Support: We’ll aid your team in formulating a robust strategy concerning Oracle ULA, whether for renewal, certification, or transitioning to a Hybrid Oracle ULA.
What is the main advantage of a Hybrid ULA over a Classic ULA?
The Hybrid ULA offers more flexibility, particularly at the end of the agreement, with options to certify usage or opt out of additional licenses and associated support fees.
Can the Hybrid ULA help control support fee increases?
Yes, it can be particularly beneficial for organizations facing steep technical support fee increases, as these increases can be converted into license fees.
Is the Hybrid ULA suitable for short-term or long-term licensing needs?
It is well-suited for short-term licensing needs without the long-term commitment to increased support fees.
Does the Hybrid ULA offer renegotiation opportunities for existing Oracle licenses?
While unfamiliar, the Hybrid ULA can be an opportunity to renegotiate licensing terms with Oracle.
Are there any hidden costs or considerations with a Hybrid Oracle ULA?
As with any licensing agreement, it’s crucial to read the fine print and understand all terms, especially concerning cloud deployments and associated costs or limitations.
Conclusion on Hybrid Oracle ULA
For those considering a Hybrid Oracle ULA or any Oracle licensing agreement, it’s always recommended to seek expert advice.
Contact us – Redress Compliance specializes in Oracle licensing and can provide invaluable insights to determine if a Hybrid Oracle ULA is the most suitable agreement for your organization’s needs.