Oracle, Saas, Negotiation, Contracts, Cot Optimization How to negotiate Oracle SaaS agreements

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