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Oracle Series: Most Egregious Terms and Conditions #5, Re-Pricing Provision

Steven Zolman
Aug. 27,2019 |

Why is it important?  Oracle’s ability to re-price can effectively eliminate any product pricing discounts off list, should you cancel a partial license set.  Even with a price hold, Oracle leverages its support policies drawn into the contract by External Reference (#6 on our List) to re-price your annual maintenance and service support costs to effectively eliminate your discounts and make your costs as high as list price if you terminate partial orders.    If you were to buy 100 licenses at a 50% discount, and you were paying $100,000 of annual maintenance service and support charges, you would think that if you terminated 50 of those ...

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Cisco Enterprise Agreements: Where’s the Beef?

The more I work with Cisco lately, the more I’m reminded of the television commercial made famous by the Wendy’s hamburger chain in the United States, wherein an elderly woman and her friends open their giant hamburger bun only to find a tiny piece of meat inside and ask, “Where’s the beef!?”  When I review Cisco EA agreements, our clients and I are asking the same question, but in this case the EA is the giant bun and the beef is the value.  What’s getting presented to us on this nice Cisco plate appears to be a lot of hamburger (i.e. the “best deal!”), but often when we lift the bun, the value (beef) is elusive and hard to find. The “Best ...

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Countdown of Oracle's 12 Most Egregious Terms and Conditions Part 6: External Reference

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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Thrive Ultimatum Series Part II: Top 10 Disruptive Technologies to Watch

What is the Thrive Ultimatum? 2019 and into 2020 will present the 'C-Suite' with a Digital Transformation ultimatum.  Digital initiatives can no longer be ‘shelved’ or viewed as a future innovation that are delayed by a myriad of excuses. Organizations operating this way are often in survival mode, feeling encumbered by forces outside their control.  But survival is no longer enough as consumers, businesses, and shareholders demand that organizations move past survival mode, to thrive mode and cross the chasm of digital change and disruption now.  Organizations that recognize this imperative and act on it are succeeding in the digital age.  ...

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Oracle Series: Countdown of the Top Twelve (most egregious) Oracle Terms and Conditions, #7 Bundling of Support

Steven Zolman
Jun. 26,2019 | Software Oracle

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 ...

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Supplier Market Update: Huawei

Many of you may be waiting and watching to see how the trade issues between China and the United States are resolved, and specifically its impact on Huawei.  With current and future Telecom & Network infrastructure projects under consideration, what are the critical things to know when considering Huawei? Despite all the political turmoil for Huawei, most of it originating out of the United States, the company has quietly become one of the largest telecommunications equipment manufacturers in the world.  Huawei expects revenue of about $100 billion annually for the next two years, compared with $105 billion in 2018 including a $30B expected ...

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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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