While recent articles proclaim Oracle is ‘Turning into a Cloud Giant’ and why their stock is should be considered a ‘buy’ (Barron’s, Feb 19th, 2021) – we say, “really?” While NET(net) does not pretend to be in the stock price benchmarking business, we can say based on experience that if Oracle is indeed becoming a ‘Cloud Giant’, then it’s probably bad for their customers. Historically, Oracle has grown new lines of business by pressuring customers into purchases they really don’t want or quite yet need but are left with few choices lest they become another audit victim. Consistent with that strategy, Oracle has thrown up some daunting ...
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If you thought Oracle audits were an issue in past years, buckle your seat belts for 2021. We expect Oracle audits to reach new heights of frequency and intensity over the coming months, specifically around Q2 2021. The driving factor is based on macro-market conditions that have been out of their control: Oracle has essentially been on hiatus for a year, not able to get on site and pester their customers about license compliance. Oracle customers have been more cost conscientious than in years past and have been more active in cancelling support for unused products. The global pandemic has caused many customers to delay or even scrap plans ...
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Now that we are quickly approaching Oracle’s H1 fiscal end (Nov 30), the time is right to revisit Oracle behaviors that can impact your bottom line in ways you may not have thought of previously, or at least haven’t had to think about in a long time. With COVID-19, remote workforce issues, and the myriad of other distractions facing organizations now, it is easy to forget how we can slowly be taken advantage of by suppliers. One of these areas of concern is around the increased cost, hassle, disorganization, and general anger created by Oracle’s siloed sales team(s). With the multitude of competing interests from one company vying for your ...
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Really, you must give credit where credit is due when it comes to creating new revenue streams. Oracle is seemingly the master at ‘making everything old, new again’ and conjuring revenue out of thin air where once there was none. With its acquisition of Sun (and by extension Java) in 2010, we should have known that it would only be a matter of time before a free platform was turned into a revenue stream. Over time, Oracle methodically added and modified the Java roadmap to lead us where we are now – the once noble and free Java SE is now lumped together with all the other Named User Plus and Processor licenses. With Java’s changes, also ...
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As 2019 drew to a close, many of you may have missed a significant development that came out of the U.S. District Court of Northern California. On December 17th, the lawsuit brought by the Sunrise Firefighter’s Pension Fund against Oracle Corporation for misleading investors on their cloud business – was dismissed. They have until February 2020 to make some changes and refile the case, but what the real take-away from this case is that we can expect ‘business as usual’ from Oracle on the audit front. To get a real sense of just how egregious and critical the audit practice was (and is) to Oracle’s revenue machine, you need only read some ...
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Clients are well advised to include specific language governing Oracle audits. Most important is the ability to purchase any compliance licenses as a result of an audit action at the contractual price hold discounts (#12 on our Oracle's Most Egregious list), and in the event that the price hold expires, at a mutually agreeable discount at the prevailing discounts available in the market for similar deals not to be unreasonably withheld. The current contract language in the standard Oracle agreement requires clients to purchase compliance licenses at list price. In the case of a 75% price hold discount, ...
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What is Auto-Install? Auto-Install is an executable file in the Oracle software kit that activates when a customer installs certain software and automatically loads various options that may or may not be included in the purchase price of the acquired software. Why is it Important? It’s important because generally the people who install the Oracle software are not contextually aware of all the intricacies of software licensing, nor perhaps are they even aware of the particulars of the commercial arrangement between your company and Oracle. They are, however, generally fans of the Oracle technology, and want all the added features, so when ...
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Business Transaction Protection is language in the agreement that provides some much needed flexibility in the event of a business transaction that significantly alters the value of the Oracle software deployment Why is it Important? These business transactions are often the source of many audit demands, and the standard Oracle language is vague and limited on what rights a customer has with regard to these types of transactions. We suggest clients include language in the agreement that gives added protections and flexibility for business transactions like mergers, acquisitions, divestitures, carve-outs, etc. Transition Service Agreements ...
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Why is it important? It’s important because many of our clients have multiple operating environments in different business units, sometimes in different geographies or even countries, and sometimes these are unrelated businesses that just so happen to be owned by the same company. In many cases, there is no relation between the needs of the operating environments, and therefore any policy to enforce equal treatment is unjustly onerous and costs our clients dearly. The business reason Oracle cites is to prevent customers from having many similar licenses, but only supporting a few of them, which makes it difficult for Oracle to determine ...
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This latest installment is probably one of our shortest, but no less important! In the standard Oracle agreement, Oracle refers to externally controlled websites for things such as the definition of support, and as such, they have the unilateral ability and control to fundamentally change the terms and conditions of your agreement without you even knowing about it until it is too late. Even if there is notification, over time these communications get lost, people leave who were points of contact, and or it may never have gotten sent to start with. We have many suggestions for Oracle's customers in this area around notifications, potential ...
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