Oracle license cost reduction is a universal challenge.
Most of our clients say either of two things:
- We have no choice and so we have to pay the demanded price.
- We have negotiated very well and got Oracle to reduce prices from the initial quotation.
Both the above points are true. But they need not be true.
Let’s look at both the points:
- We have no choice and so we have to pay the demanded license price.
While this is true and reducing Oracle license costs is indeed a challenge, it is not an impossibility. There are ways to create leverage. - We have negotiated very well and got Oracle to reduce prices from the initial quotation.
Unfortunately this is the worst situation to be in. Without knowing the benchmark prices in your market and adjoining regions, it becomes a shot in the blind to get a good price. Oracle sales people will surely reduce the price from the initial quoted price. But they will not give you the best and lowest price.
What are the challenges in reducing Oracle license costs?
The main issues in managing Oracle expenses comes from
- Oracle’s contracts
- Oracle’s software installation methods
- Oracle’s intricate license policies
- Oracle’s software stickiness
- Oracle’s sales aggression
- Oracle’s knowledge of the customer
Oracle has created a wonderful playbook using the perception of the above issues to wangle large license and support fees from their customers.
How can we reduce Oracle license costs?
There are ways to reduce Oracle costs and we, at Rythium, have been helping clients reduce Oracle costs for the most part of the last decade. While there are techniques to optimize costs, the process is complex and demands a comprehensive engagement involving the following elements:
- Analysing existing software contracts & auditing the deployments
- Inquiring into current and future licensing needs and business transformation projects
- Licensing of Oracle on the cloud (in case of migrations being planned)
- Potential mergers and acquisitions.
What are the kinds of customer situations that we, at Rythium, encounter?
Customers come to us when they have some of the following issues and situations:
- Oracle salespeople are demanding huge license fees threatening an audit.
- Oracle has sent a formal audit notice / or Oracle has completed running LMS scripts.
- You are nearing the end of the Oracle ULA term & want to certify or renew it
- Oracle wants you to pay for usage of Java
- You are planning to migrate to the cloud & want to know how to use Oracle licenses
- You are paying huge support fees to Oracle
How much can you save on Oracle license costs by engaging us?
We have saved customers Oracle license costs between 30% to 100% of their potential license exposure during audit or ULA situations. On support reductions we have been able to help clients reduce their annual expenditure between 20% to 60%.
You can read a case study here
You can also some more case studies here
