If you missed Part I - start here. Is a Cloud Broker right for you? A Cloud Broker by definition is an entity that manages the use, performance and delivery of cloud services, and negotiates relationships between cloud providers and cloud consumers. As cloud computing evolves, the integration of cloud services may be too complex for Cloud consumers to manage alone. A Cloud Broker can also be in a unique position to collect, analyze and conduct opportunity assessments on pricing that will be key to a multicloud or Cloud Arbitrage strategy. Generally, cloud arbitrage is the practice of taking advantage of a price difference between two or more ...
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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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Many enterprises adopt a multicloud strategy out of a desire to avoid Cloud supplier lock-in or to take advantage of innovative solutions with a certain Cloud provider. There are many rationales for using multiple clouds, as they each have different strengths and weaknesses for performance and functionality, different pricing schemes, and some workloads simply run better on one cloud platform versus another. Although neither provide a financial breakdown of their cloud business, AWS continues to dominate the cloud infrastructure market, but its lead is starting to wane as Microsoft Azure and Google Compute Engine make significant inroads. ...
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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 if ...
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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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What is the Bundling of Support? The bundling of support is Oracle’s long-standing policy to sell product upgrades and technical support together as a single offering, and not allow customers to buy them separately. Why is it important? It’s important because in mature deployments, many customers no longer need product upgradability, but they still want access to technical support for the appearance of risk mitigation. In those instances, they are forced to pay for one to get the other. Oracle combines technical break/fix product support with product upgradability (the rights to upgrade the product with no additional software license cost) ...
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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, is ...
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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 control. ...
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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 of ...
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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 of ...
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