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Oracle Series: Countdown of the Top Twelve (most egregious) Oracle Terms and Conditions, #8 License Exchange

What is a license exchange? A license exchange is a private market setup between you and Oracle, whereby you can ‘trade-in’ the list license value of software you no longer want or need for a list license value credit on new titles you do want.  Why is it important? It’s important because absent this protection, it’s exceedingly difficult to get any value from software that you no longer want or need, and in many cases, it’s because the software didn’t work the way you thought it was going to work, or it didn’t provide the level of value you needed to justify its use.  The other critical flaw in the Oracle approach to licensing management, ...

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Oracle Series: Countdown of the Top 12 (most egregious) Oracle Terms and Conditions:  #9 Reduced Minimums

Steven Zolman
May. 29,2019 | Oracle

What are reduced minimums? When Oracle licenses certain software by various metrics (other than their preferred metric of Processor), Oracle is responding to customer demand for an improved metric designed to provide some economic relief, generally for non-production use.  Most commonly, Oracle agrees to allow its customers to license certain environments (like test or development environments) by named user, instead of by processor.  In so doing, however, Oracle generally requires user minimums (a minimum number of users that have to be licensed in order to receive that benefit), so as not to give too big of a financial concession to the ...

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Oracle Series: Countdown of the Top 12 (most egregious) Oracle Terms and Conditions.  #10 - Support Caps

In our previous posts, we have reviewed the need for: Price Holds Maintenance Freeze And in this post, we will discuss the need for caps on the Annual increases for Maintenance and Support Services. Support Caps What is a Support Cap?  A support cap seeks to place limits on the compounded effect of annual increases to the costs of the annual maintenance and support services fees beyond the Maintenance Freeze term.  Why is it Important?  If there is no language to govern the amount of increase after the Maintenance Freeze (#11 in our list) term, the costs of annual maintenance and support services can skyrocket and quickly get out of ...

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Financial Services Blog Series: A Journey to World Class IT Outsourcing

William Edwards Deming (1900-1993) is widely acknowledged as the leading thinker in the field of quality. He was a statistician and business consultant who is well known for his “14 Points for Management”. He used to say that ‘management is prediction,’ by which he meant that every decision is also a prediction about the future. The rate of change continues to increase, and as it does the business environment becomes ever more complex. Amidst this complex and uncertain environment, business still has to accomplish something – by getting work done. And getting work done is increasingly outsourced to 3rd parties. In 2017, the global ...

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Oracle Series: Countdown of the Top 12 (most egregious) Oracle Terms and Conditions. #11 - Maintenance Freeze

NET(net) advises all clients to strive to “lock down” every escalating cost of Oracle’s annual maintenance and support services by negotiating a maintenance freeze for as long as possible.  What is a maintenance freeze?  It’s a provision in the contract to ensure that Oracle doesn’t increase the annual maintenance service and support costs year over year; and on a compounding basis. Why is it needed?  Across our experiences, Oracle often charges a 9% annual increase, which compounds year-over-year, and fundamentally Diminishes the Inclusive Value of the annual maintenance & support services Equation: the DIVE phenomenon).     A cost increase ...

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Oracle Series: Countdown of the Top 12 (most egregious) Oracle Terms and Conditions #12

The votes are counted, and Oracle yet again wins for being perhaps the most tyrannical of all technology suppliers.  The standard Oracle Terms and Conditions are legendary for being one-sided. What’s worse, Oracle has gained an equally reviled reputation for leveraging those terms and conditions to their full and unilateral benefit at the great expense of their customers.   If you are renewing your annual maintenance with Oracle, buying new Oracle software, engaged in or concerned about an Oracle audit, considering Cloud solutions or having them forced upon you, or just thinking about how to mitigate cost and risk and improve the realization ...

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Financial Services Blog Series: Mergers and Acquisitions – Managing Risk and Reducing Costs Through Software Disentanglement.

Kin Hubbard, a humorist and journalist who lived 100 years ago once said “the safest way to double your money is to fold it over once and put it in your pocket”. Clearly views are different today. The value of mergers and acquisitions in the U.S. financial-services sector alone more than doubled to a whopping $196.5 billion in 2018 from $82.3 billion in 2017. According to a report by White & Case, Financial Institutions M&A Sector 2019 Trends, there are possibilities of mega deals in Europe and that Wall Street behemoths may start flexing their expansion muscles. And when that materializes, a Stock Purchase Agreement (SPA) is the result that ...

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Our Prediction:  Blockchain WILL Replace the Supplier Invoice

Most clients today use a complicated procedure for processing supplier payments to ensure the process is not only accurate and complete, but also: comports with the terms of the commercial agreement performs in compliance with the conditions of the contractual agreement is done with authenticated trading partners isn’t fraudulent or illicit in any way is fully auditable An Example of This Authentication Process: A Purchase Requisition is made, signifying the internal demand for the seller’s products and services. The terms of a Commercial Arrangement are agreed to, including product, service, and pricing information. A Contractual Agreement ...

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Breaking Bad: The Big 5 HCM Suppliers

According to MarketWatch, the global HCM market size in 2018 was $12.6B USD and is poised to grow to $22.6B by 2025!  That is an impressive growth number and companies will be going all out to claim their share of it.  While these ‘Big 5’ take up a massive chunk of the HCM market, the biggest piece of the pie is still quantified as ‘other’, meaning there are a myriad of options for enterprises to choose from.  Before you can even consider the niche players and startups on the cutting edge of HCM technology, you first have to know what the big players can do.  They will claim they can do everything under the sun, but in some cases that’s only ...

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Top 10 Audit Crazy Suppliers: 2019 Version!

Software audits have become an unfortunate but necessary revenue stream for most suppliers today.  And who can really blame them?  It usually works!  Just as governments have now come to rely on revenue from things like speeding and parking tickets, so to have software companies come to rely on software audits to move the needle on revenue or generate fear, using pressure and leverage to create opportunities for new licensing revenue. The reasons are well known, and really haven’t changed significantly in the last few years: Competition from disruptive suppliers Migration away from perpetual licensing to subscription-based cloud solutions ...

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