Top 10 - negotiating oracle saas contracts
- 1. Negotiating SaaS Agreements with Oracle 10 contract terms that will minimize over-spend on Oracle Cloud
- 2. Contract term: Description: Allow agents, affiliates, service providers and clients to use your services. Recommendations: Review who will be using your Oracle cloud services and negotiate appropriately. How important do I think this is? If you don’t negotiate: Excluded parties may not be able or allowed to use any services you build on Oracle Cloud. Benefits of negotiating: It provides usage rights to non- employees of your company. It provides more flexibility Usage-rights
- 3. Contract term: Description: Before you purchase any cloud services. Make sure it works like you expect. Recommendations: Always make sure you get a free pilot & POC for non production purposes. How important do I think this is? If you don’t negotiate: You might buy a cloud service that does not work technically. Benefits of negotiating: Ability to test your workload in Oracle Cloud. Free POC & Pilot
- 4. Contract term: Description: Delay start date for your Oracle Cloud services Recommendations: We recommend minimum 60 days from signing. Make a estimate when you will start using the services How important do I think this is? If you don’t negotiate: If you buy 12 months and only start using it after 2 months. You are essentially only buying 10 months. Benefits of negotiating: Don’t over-spend loose any value. Delay start date
- 5. Contract term: Description: Allowing you to have a ramp up package where you pay less early and more later when you have more users deployed. Recommendations: Understand your project roll out and risks. How important do I think this is? If you don’t negotiate: You pay maximum even if you don’t use the full capacity purchase. Benefits of negotiating: Fees to Oracle is connected to your ramp up usage. Ramp up pricing
- 6. Contract term: Description: Allowing you to purchase additional cloud services for a fixed price. Recommendations: Always include How important do I think this is? If you don’t negotiate: If you don’t have it, Oracle might not want to give you same pricing on following purchases. You have less negotiation leverage Benefits of negotiating: You will know worst-case purchase price, pricehold is where you start the next negotiation. Priceholds
- 7. Contract term: Description: Put a cap usually 5-10% on price increase when contract expires Recommendations: Always include How important do I think this is? If you don’t negotiate: There is no guarantee what the renewal price will be when your cloud services agreement is up for renewal Benefits of negotiating: Make sure Oracle don’t increase your renewal cost with 30% when the contract expires . Renewal cap
- 8. Contract term: Description: This contract clause can allow you to reduce the usage/fees paid to Oracle if you don’t use Oracle Cloud services. Recommendations: Try to include as a safe-guard if the roll-out is not according to plan. Not easy to negotiate How important do I think this is? If you don’t negotiate: You will need to pay the agreed fees to Oracle even if you don’t use your cloud services. Benefits of negotiating: If your Oracle cloud roll-out is failed or does not start. You can reduce fees paid to Oracle if your usage is not as high as expected. Allow you to reduce usage during term
- 9. Contract term: Description: Prevent Oracle from stopping the service if you don’t complete renewal in time. Recommendations: It should be minimum 40-60 days. How important do I think this is? If you don’t negotiate: Oracle can stop the cloud service if you don’t renew in time.. Benefits of negotiating: Gain negotiation leverage but also safety incase renewal process takes longer thane expected. Failure to renew before renewal date
- 10. Contract term: Description: Oracle will commit to delete your data after you end your cloud services. Recommendations: Check your policy on data retention and negotiate appropriately. How important do I think this is? If you don’t negotiate: It is probably not likely Oracle will hold on to your data. But you might want this clause to make sure. Benefits of negotiating: Making sure that no customer data is in Oracle cloud after you terminate the cloud services.. Remove your Data after termination
- 11. Contract term: Description: If you have a “burn-down” cloud services. If you have not used it all, you can use it for a new subscription term. Recommendations: A very good term! Especially if you sign a short term agreement or buy a lot of cloud services. How important do I think this is? If you don’t negotiate: If you have a burn-down cloud service and the contract term expires. The cloud service/credits are lost. Benefits of negotiating: If you have anything left of your cloud subscription you can simply renew the term and keep the unused cloud services.. Roll-over services