Rather spend money on innovation than on Oracle support? We got it!
Aren't these definitions like license sets, matching support levels or repricing making you crazy? Applying them inadequately can also make your CFO go crazy.
It's inescapable that Oracle contracts and policies aren't the easiest to understand or to negotiate.
Your Oracle support contracts shouldn't be holding you back in your evolution as a company.
Just like Oracle's products where scaling up and down is easy, there are ways to get what you want with your Oracle support contracts as well so that the money can be spent where it should be.
Why looking for a cure, if prevention is just around the corner?
As there are so many pitfalls in Oracle audit scenarios, it was too complex to write one case about it. So, we decided to go for a summary of pain points we already encountered:
“At the end of Oracles fiscal year, the 31st of May, we received an offer we could not refuse. We were asked to sign this Oracle Cloud Contract before midnight. We did not have the time to check the contract as such and signed it. We knew that somewhere in those 100s of pages we were screwed. Who can do a contract risk analysis and indicate how we can strengthen our legal position for future contracts?” – CIO at a big Oracle customer
“We received an Oracle audit via an authorized partner and a huge incompliancy was discovered due to our VMWare environment. An Oracle LMS acceptance letter was sent to us and needed to be signed and an order had to be placed within the next 30 days.
We felt a lot of pressure on one hand and on the other hand we were informed the incompliancy cost could significantly be reduced if we would adjust our infrastructure. How could we find a settlement with Oracle?” – IT Infrastructure Manager at medium sized Oracle customer
“We know we are not compliant at this moment, possibly for more than just a few millions of Dollars. We have very complex Oracle contracts and no visibility on license usage, no understanding of all products, accidental and non-authorized usage of management packs. On top of that the company is also making losses due to missing processes and not enough control, even the jobs of some employees are at risk. Due to this situation we do not feel comfortable in our communication to auditing teams or Oracle and we are looking for an IT partner who can guide us through this complex process. We want to have peace of mind and able to focus on what really matters in the near future.” – Stakeholders at a key Oracle customer
“We just acquired company ‘x’ which also has Oracle contracts in place. We are now looking for an IT advisor who can merge both contracts and get the best out of both worlds. Taking into account a variety of old and new metrics, options and management packs, hardware changes, virtualization, backups, failover, standby, usage discovery, etc…” – Business Process Owners at two larger Oracle customers
The advice of White Raven IT in all of these cases is simple: “Knowledge and getting in control is key and it pays off to be pro-active rather than re-active. Compliant customers have a better relationship and negotiate better deals with Oracle
What are you facing?
“Oracle has changed Java support policy and which states that any Oracle / Sun Microsystems Java Standard Edition (SE) – including JRE, JDK etc. on LTS release (long term support) would need a paid license/ support or subscription from Oracle for Oracle Java SE Advance/ Desktop in order to receive commercial patches including security support, starting January 2019.
The majority of Java customers worldwide uses Oracle Java LTS version 6, 7, or 8.
This is applicable for all customers, not the typical larger Oracle customer, as all have accepted the BCL (binary code license) agreement with Sun Microsystems (now part of Oracle). This would severely affect organizations with unplanned budgets.”
Oracle has replaced BCL (Binary code license) agreement with their standard OTN agreement (with Audit clause) with new Oracle Java SE version 11 release.
How might this affect you?
- Public Updates for Java 8, 7, 6 for commercial are no longer available since January 2019.
- Oracle Java and OpenJDK releases will happen on a 6 monthly cadence and only the latest versions will get security patches (except for LTS commercial versions with a support contract).
- As of Oracle Java SE 11, Oracle will no longer provide free Public Updates (so no free of charge patching).
- Oracle Java licenses are now sold as an annual subscription rather than on a perpetual license plus support basis.
Get in touch with White Raven IT if you want to be covered according to your wishes and avoid spending money on things you don’t need.
Oracle customer, ISV, or hosting partner? A one stop shop for all your Oracle related questions!
It can be difficult to obtain a good contract not only serving your needs but also those of your end customers.
There are significantly more risks if working with various hosting partners or offering an in-house application, maybe both on-premise and in a cloud.
Often, we see a huge portfolio of Oracle products and solutions being used but a lack of visibility and processes.
When ISVs develop a cool and smart application, sometimes it's still hard putting it in the market as the Oracle technology contracts are not aligned with your business model.
Our high-end Oracle managed service is first of all tailor-made.
This extreme level of customization is a must because a (larger) Oracle customer, an Oracle ISV, integrator or hosting partner has different needs and runs into different risks.
Often, we kick off with a workshop and have your relevant stakeholders around the table. Your current and future needs are being discussed on a strategic and operational level resulting in a detailed risk heat map on an environment, department and/or product level. This prioritization is linked to your current and future needs which result in a plan on getting what you want and need, from a financial, security, ease of management and many other points of view.
Explosion of licensing cost? Not necessarily!
"Tough love!", that's the least you could say about running Oracle in virtualized environment.
How many companies out there haven't had quite a bill presented due to running Oracle on VMware and then seeing this much larger number than expected for their Processors or Named User Plus licenses.
Often, we're talking millions of Dollars, sometimes caused by apparently small mistakes or details.
Things don't necessarily have to be that way. We have a proven track record of helping companies getting a future-proof VMware setup approved by Oracle. It's not only about doing the right thing the right way, it also has to be communicated the right way so that there is no room for interpretation. Cost reduction and risk mitigation are the obvious results, but also a simplification of the environment and processes leads to a worry-free management.
"We've signed this Oracle cloud contract which seemed easy at first but then there were hundreds of additional pages to be signed and we have no idea what's in there, nor do we know what our options are if these cloud products don't meet our expectations."
All these different types of contracts, policies, allowed setups and so on, it's really hard to get an understanding of it, let alone negotiating a contract that won't require renegotiation after some months.
Many Oracle customers today are convinced that if a good discount has been negotiated, that 95% of the work is done and the procurement divisions did a great job.
Although a well negotiated discount is always a good thing, just by itself, it won't pay off in the long run.
Involving all departments to negotiate clauses of strategic and long-term importance will be far more interesting. Ask yourself if your current needs are also your future needs? We've been able to save hundreds of thousands of dollars for Oracle customers by taking our time answering this very question and mitigating risks at the time.