Michael Welsh

Mar. 30,2022 | Oracle

Oracle spends more on marketing than it does on innovation, $7.6B to be exact.  Knowing Oracle, they probably refer to their marketing efforts as innovative.  Oracle’s licensing and cloud offers come in a dizzying array of offerings and by extension, complexity, but they are anything but innovative.   

We’ve observed over the last several months an uptick in sub-optimized Oracle deployments that are causing substantial pain around:  

• PULA’s – Perpetual User License Agreements 
• Cloud@Customer – Oracle public cloud apps in your data center 

• PaaS – Platform as a Service and  
• IaaS – Infrastructure as a Service  

What all these offerings share that is causing such turmoil, are the growing complexity and resulting pitfalls around pricing and contractual terms.  Most won’t realize what’s happening until their costs start exceeding planned budgets and or cloud waste is out of control.  Even with all the focus on it of late, cloud waste is still on the rise as new reports show upwards of 32% is needlessly consumed, and adding insult to injury, cloud projects are typically 13% over budget to begin with. 

"Q3 Cloud Infrastructure revenue was up 47% in constant currency.  Q3 Cloud Applications growth was led by Fusion ERP, which was up 35% in constant currency and NetSuite ERP which was up 29% in constant currency. Total Cloud revenue which includes Cloud Infrastructure and Cloud Applications is now over $11 billion a year." - Oracle CEO, Safra Catz. 

None of this confusion is news to Oracle, as they are happy to continue rolling out products and buying their way into more cloud share (re: Cerner acquisition) while keeping their customers’ heads spinning.  By the time you figure out the new product bundles and how to cost optimize them, Oracle has already moved on to something new or another combination of the old, requiring yet another shift.   In the end, most IT organizations never really ascertain how much budget they are wasting until they ask for professional help – and we don’t mean from Oracle’s own SIA (Software Investment Advisory), as they really aren’t much help at reducing your spend. 

If you find yourself in any of the situations below, you should consult an outside Oracle expert like NET(net): 

• Pitfalls: Oracle is lying in wait for unsuspecting customers with “standard” increases, repricing of reduced quantities as customers try to save money.  NET(net) has 20 years of success delivering reductions in excess of 30%.

• Pitfalls: Assuming that Oracle software runs better on Oracle cloud is a common belief but couldn’t be further from the truth.  Additionally, Oracle cloud can cost a multiple of what general cloud computing platforms cost.  If considering this path, don’t commit until after you speak with us.

• Pitfalls: All of Oracle’s wares (hardware, software and cloud) are needlessly expensive for customers.  NET(net) delivers market leading deals for our clients.  Call us to keep more of “Oracle’s” margin in your budget for your other priorities.

• Pitfalls: Oracle has published updated alphabet soups terms like PULA and C@C (cloud at customer).  These are often presented as good ideas but rarely are.  Before entering into one of these types of agreements which effectively burn your lifeboats.  Call us to ensure you understand that in Oracle’s case, something presented as too good to be true, probably is.

• Pitfalls: A tried-and-true way for Oracle to separate its customers from their money.  Before you give Oracle any response to an audit threat, call us. 

We can help with a few short phone calls, a benchmark, or self-funding engagement to negotiate for you from end to end.  In any scenario, we will pay for ourselves and provide a targeted return to you of greater than 400%.  Click here to contact us and get started.

About NET(net)

Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get and keep more economic and strategic value. With over 2,500 clients around the world in nearly all industries and geographies, and with the experience of over 25,000 field engagements with over 250 technology suppliers in XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, Telecommunications, and other areas of IT spend, resulting in incremental client captured value in excess of $250 billion since 2002. NET(net) has the expertise you need, the experience you want, and the performance you demand. Contact us today at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1-866-2-NET-net to see if we can help you capture more value in your IT investments, agreements, and relationships.

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