Acquiring and maintaining Oracle licenses can be confusing and laborious, even more so with new, non-traditional licensing models, such as SaaS.
To enable innovation, quality assurance and cost reduction of your Oracle assets without introducing risk, you should consider an Oracle Procurement Strategy.
SIGNS YOU NEED AN ORACLE PROCUREMENT STRATEGY
- You have a large footprint of Oracle products which have been purchased over a period of time
- You have a number of contracts supporting your Oracle footprints
- You have a disparate number of systems running on different hardware and are needing to understand if there is a business case for consolidation or moving to a SaaS offering
- You are about to invest in a large footprint of Oracle products across the Red Stack
- You want to understand how you can save cost
To achieve the best long-term return on your Oracle investment, it is strongly recommended that you follow a structured approach to your Procurement Strategy.
4 STEPS TO DEVELOPING AN ORACLE PROCUREMENT STRATEGY
1. KNOW YOUR DRIVERS
Before you start, you need to assess your current situation to identify your drivers and clearly understand what you want to achieve with your Oracle assets. Three of the most common drivers include cost, consolidation and flexibility.
Cost: Most Oracle customers are looking for ways to reduce their total cost of Oracle assets. You must be careful that in the attempt to cut costs, you do not become non-compliant and, as a result, owe Oracle substantial license and support fees.
Consolidation: You may be looking to consolidate your Oracle assets to be more efficient, and, in turn, run a low maintenance Oracle footprint.
Flexibility: You may require flexibility around your licensing contracts, so that you have the freedom to pursue future acquisitions or to implement changes to your business moving forward.
2. REVIEW YOUR CURRENT POSITION
Review your license contracts against your existing Oracle footprint and establish what Oracle products you are bound to now, and what you are considering for the future. This will allow you to identify any current exposure or possible risk of non-compliance.
Conduct workshops to analyse your objectives and explore all possible options that will assist you to reach your goals. The scope of these workshops should include developing an architecture roadmap to clearly articulate your strategy over the next 3-5 years.
3. ANALYSE YOUR OPTIONS
Analyse your different licensing options established in step 2. This should be done in commercial terms to prepare for negotiations with Oracle.
Undertake a cost-benefit analysis by listing pros and cons of different licensing options. This will allow you to determine a business case, measure the return on investment and total cost of ownership. For example, License Metrics Enterprise, Component or CAS pricing and SaaS versus Traditional versus Hybrid model.
4. CLEVER NEGOTIATION
Once you have a clear approach, the next step is to engage in a commercial discussion with Oracle.
Negotiating the best terms with Oracle can be quite challenging. To simplify this process and get the best results, you can engage an Independent Licensing Specialist to do this on your behalf.