Oracle ULA

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
  • 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.

Oracle PULA

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

oracle pula negotiation

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

What is the difference between Oracle ULA and Pula?

The primary differentiator is that an Oracle PULA has no end date.

How is pricing calculated for Oracle PULA?

There is no price list for Oracle PULA or ULA. The Oracle sales team determines the pricing. It is sold on business value; as a rule, we see Oracle proposing PULA at 30-50% more cost than a normal Oracle ULA.

Can I terminate support for licenses or products I do not use in my Oracle PULA?

No, because when entering an Oracle PULA, you, as the customer, migrate all existing CSI that will be part of the PULA. Failure to pay technical support is a breach of contract.

Will the Oracle PULA expire?

No, it will not; it has no contractual end date. However, you can negotiate a self-certification clause. The PULA will usually also be certified if your company is acquired or you are in breach of the contract; one breach can be a failure to pay maintenance fees.

How to we add additional Oracle programs to our Oracle PULA?

There is usually no contract mechanism unless you have pre-negotiated a price list for adding additional products. This gives Oracle leverage in a negotiation as they may decide the price if you want to add products.

Can we sign an Oracle PULA for Oracle Applications?

You can sign an Oracle PULA for applications such as Oracle EBS, Oracle Peoplesoft, Oracle JD Edwards, and Oracle Siebel.

Can we use Oracle PULA programs in Public Cloud?

Yes, but always check your contract first if you have any restrictions. But generally, you are most likely to use your PULA licenses as Bring Your Own License. If you use Oracle Cloud, you are eligible for Oracle support rewards.

Before entering an Oracle PULA – what should we consider?

You should perform an Oracle licensing assessment to include the correct products in the Oracle PULA. The risk is that you sign the agreement and forget to include products; this can lead to major financial risks for your company.

When should we consider an Oracle PULA before an Oracle ULA?

If you need ULA for more than five years, we recommend only selecting core products, such as databases that can be recycled for other applications. If you pick, for example, WebLogic in your PULA, your strategy may change for middleware. It is less likely for the database. You want to avoid including products that you may not use in the future.

How much does an Oracle PULA cost ?

In our experience, it starts with $1,5 m in license fees. If you have had an Oracle ULA in the past, Oracle often puts a 50% additional price tag on Oracle PULA. However, it is essential to note that Oracle PULA has no price list and no discount.

If Oracle shows a value based on a figure in a negotiation, you need to re-evaluate your negotiation strategy. Your strategy should focus on a fixed amount you believe the Oracle PULA is worth and then discount.

What is the most common mistake organizations make with Oracle PULA?

The most common is that organizations include too many products in the Oracle PULA.

In a few years, dissatisfaction grew with Oracle PULA when they realized that they could not terminate support for unused products. Organizations considering any Oracle Unlimited Type of agreement should carefully review Oracle Technical Support Policies.

We want to exit my Oracle PULA – what should we do?

Review your licensing and use Oracle LMS scripts to detect active and historical usage.

When you have completed the licensing assessment, contact Oracle to start the certification process. You should not start that process before you have completed your independent licensing assessment.

We have an Oracle PULA and want to reduce our support costs; how do we do it?

The only way is to certify/exit the PULA. Because if you choose not to pay Oracle support, the contract will be in breach, and you will lose all your licenses and support.

What are the benefits of Oracle ULA

With an Oracle ULA, you pay a set price for license and support, which lets you use an unrestricted amount of licenses for particular Oracle products.

ULAs can also consist of a mix of unlimited licenses and those with a specified quantity.

What is ULA certification?

Oracle ULA Certification is an organization’s procedure when it decides not to renew its Oracle Unlimited agreement.

This involves providing Oracle with reports and documents about the software’s use.

What is a PULA?

This is short for Oracle Perpetual Unlimited License Agreement; this is an Oracle ULA that has no end date.

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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.

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