The ordering document and any non-standard terms are where most of the money is won or lost.
An Oracle deal rests on a stack of documents. The Oracle Master Agreement sets the general terms, including Oracle’s right to audit, with schedules for programs, hardware, cloud and Linux support. Each purchase is made on an ordering document, which can change those terms. Oracle’s license definitions and its technical support policies, published online, complete the set.
22%of the net license fee, every year: the support price an Oracle contract commits you to
| Document | Sets |
|---|---|
| Oracle Master Agreement | General terms, audit |
| Ordering document | This deal |
| Definitions and policies | Metrics, support |
An ordering document can carry special conditions that amend the agreements above it.
Oracle was one of the first IT companies in the world to publish its pricing and contract documents on its public websites, but navigating them is still very hard. We believe Oracle’s contracts are more equitable than those of some other large software vendors. But the number of documents and terms can expose customers to non-compliance risks and high annual costs.
1. Oracle Master Agreement (OMA)The first agreement in the hierarchy: general terms on intellectual property, usage, liability and audit.
2. OMA schedulesSchedule P for programs, Schedule H for hardware, Schedule C for cloud services and Schedule LVM for Linux and Oracle VM support, co-terminous with the OMA.
3. Ordering documentEach purchase: the bill of material, fees, payment terms and any special conditions, which can amend the other agreements.
4. Ordering document addendumChanges, entitlements or obligations negotiated for one purchase. Changes to the other documents generally come this way.
5. Definitions and policiesThe License Definitions and Rules, and the Technical Support Policies, which are not signed but linked from the OMA.
You live with the terms of an Oracle contract for the whole life of the product. Give the contract the same due diligence you gave the product, and check these terms before you sign.
| Key term | What to check |
|---|---|
| License metric and definitions | Processor, Named User Plus and their minimums decide how many licenses you need. See the Oracle core factor table. |
| Who and where | Which legal entities may use the licenses, and in which territory. |
| Audit | Oracle’s right to audit your use, and your duty to cooperate, sit in the master agreement. |
| Support | Support is priced at 22% of the net license fee a year, and ending part of an order reprices the rest. See Oracle support costs. |
| Ordering document terms | Discounts, price holds and special rights agreed for this deal, which can override the standard terms. |
| ULA terms | For an Unlimited License Agreement, the products in scope and the certification clause. See the contract structure of an Oracle ULA. |
The Oracle contracts and agreements you are most likely to meet, who signs them, and what each one covers.
| Acronym | Agreement | What it covers | Signed by |
|---|---|---|---|
| OMA | Oracle Master Agreement | The first agreement in the hierarchy. General terms on IP, usage, liability and audit, with schedules for each product set. | Oracle and customer |
| Schedule P | Programs | Use of software owned or distributed by Oracle. Co-terminous with the OMA. | Oracle and customer |
| Schedule H | Hardware | Use of hardware and its integrated operating system software. | Oracle and customer |
| Schedule C | Cloud Services | Use of cloud services: SaaS, PaaS and IaaS. | Oracle and customer |
| Schedule LVM | Linux and VM Services | Linux and Oracle VM support. | Oracle and customer |
| OD | Ordering Document | The bill of material, fees, payment terms and special conditions, which can amend the other agreements. | Oracle and customer, or Oracle and partner for a reseller deal |
| OD Addendum | Addendum to the Ordering Document | Extra changes, entitlements or obligations negotiated for one purchase. Changes to the other documents generally come this way. | Oracle and customer, or Oracle and partner |
| LDR | License Definitions and Rules | The definitions of each license metric and how they apply to each Oracle product. | Oracle and customer |
| Technical Support Policies | Technical Support Policies | How support is provided, including the obligation to pay fees. | Not signed; linked from the OMA |
| OLSA | Oracle License and Services Agreement | Legacy agreement for software and support services. | Oracle and customer |
| OSA | Oracle Services Agreement | Legacy agreement for support services. | Oracle and customer |
| CSA | Cloud Services Agreement | Hosting and software application services in the cloud. | Oracle and customer |
| ULA | Unlimited License Agreement | An ordering document for an unlimited license agreement. | Oracle and customer |
| POF | Pool of Funds Agreement | An ordering document for a pool of funds agreement. | Oracle and customer |
| DPA | Data Processing Agreement | Processing of personal data while providing services. | Oracle and customer |
| OTN | Oracle Technology Network | Use of Oracle products for development, from Oracle’s public technical resources site. | Oracle and customer |
| BCL | Binary Code License | Legacy Java license. | Oracle and customer |
| OPN | Oracle PartnerNetwork | Oracle’s channel partner program for resellers and software vendors, recently modernized with more cloud benefits. | Oracle and partner |
| ISV MA | Independent Software Vendor Master Agreement | For developers who want the right to resell Oracle programs with their software. | Oracle and partner |
| FUDA | Full Use Distribution Agreement | Lets a partner resell full-use Oracle licenses. | Oracle and partner |
| ASFUDA | Application-Specific Full Use Distribution Agreement | Lets a software vendor resell licenses restricted to one application package. | Oracle and partner |
| ESL | Embedded License Agreement | Lets a software vendor embed Oracle licenses in one application package. | Oracle and partner |
| CSDA | Cloud Services Distribution Agreement | Lets a partner resell Oracle cloud services. | Oracle and partner |
The Contract Management module of the Rythium Software and IT Asset Manager manages every type of contract after award. It is pre-configured for IT contracts.
One repositoryAll contracts in one place, in a hierarchy you configure, with every term, clause and payment recorded and the documents uploaded securely in any format.
SearchSearch across many parameters at once.
EntitlementsIntegrated with Rythium IT Asset Management, so software and hardware entitlements are managed through standardized SKUs.
AlertsReminders and notifications to stakeholders before milestones and upcoming events.
The first agreement in the Oracle contract hierarchy. It holds the general terms on intellectual property, usage, liability and audit, with schedules for different product sets.
Schedules of the Oracle Master Agreement, co-terminous with it: Schedule P covers programs (software), Schedule H hardware and its integrated software, Schedule C cloud services (SaaS, PaaS and IaaS), and Schedule LVM Linux and Oracle VM support.
The document for each purchase: the bill of material, fees, payment terms and any special conditions. Special conditions in it can amend the other agreements, so it is where most of the money is won or lost.
In the Oracle Master Agreement, together with your duty to cooperate.
It is not physically signed, but it is linked from the Oracle Master Agreement and governs how support is provided, including the obligation to pay support fees.
Schedule C of the Oracle Master Agreement covers SaaS, PaaS and IaaS, and the Cloud Services Agreement covers hosting and application services in the cloud. Partners resell Oracle cloud services under a Cloud Services Distribution Agreement.
The license metric and definitions, which entities and territories may use the licenses, the audit clause, the support terms, the discounts and special rights in the ordering document, and for a ULA, the products in scope and the certification clause.
22% of the net license fee a year, and ending support for part of an order reprices the support on the rest.
No. Rythium is independent and does not resell licenses or support, or earn income from Oracle or any support provider.
Tell us what you are signing or renewing. We will tell you which terms deserve a closer look in a deal like yours.
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