As many of you know, Oracle’s year-end falls on May 31st. But, many of you may not know that Oracle does a huge chunk of its annual sales revenues in Q4 and about 70% of that in May alone! Therefore, you can imagine the enormous pressure on Oracle sales executives when they have to make most of their annual quota in one month of the year. While this leads to Oracle sales people exerting a lot of “their” pressure onto their customers, it can also be something you, as a customer, use to your advantage. Below are some tips and ideas you should keep in mind when negotiating end of year deals with Oracle:
YOU ARE in Control – Oracle will often have you believe they are in control, or Oracle approvals is in control, of the sales process. But always remember you are the customer, you are the buyer. Just because Oracle has crazy deadlines and pressures looming doesn’t mean you must abide by “their” timelines. However, because Oracle does need every dime they can get before May, you can use this to you advantage if you know you do need some Oracle software or hardware. May could be a great time of year to negotiate hard to get the price and terms you want.
Negotiate Terms - An effective negotiation strategy should address key areas such as: Entity Lists, User Groups, Auditing terms, Licensing & Support policies, Virtualization, Governing Law, and Assignment. It’s common to overlook the importance of these other terms, and just focus on pricing, when signing deadlines are looming and the actual need for software is pressing. But that’s a mistake. You must make sure your software agreement terms match your company business strategies for the long term. This is an important way to protect yourself from paying high fees, especially since many contracts are perpetual.
Cloud - Oracle is 100% focused on selling cloud. Always keep an open mind to adding cloud to a deal. If purchasing some cloud might give you the products you really need at a lower price, that could turn out to be a great deal for you! This is definitely an approach some customers are taking and realizing savings.
These are just some Q4 negotiation strategies we thought worth sharing with our Olitech community. If you have any Oracle negotiations pending or possibly coming up in the future, don’t hesitate to Contact us! We have been negotiating Oracle contracts for many years and use our expertise to help clients get the most out of their Oracle investments.
By Melissa Cortale
Melissa Cortale is founder and President of Olitech Solutions. Melissa is an Oracle licensing expert and a frequent speaker at industry conferences and trade shows. Melissa has shared her expertise at multiple SAM conferences and has has taught IBSMA’s Practitioner’s Certificate in Oracle License Management (PCOLM) course across the US and abroad.