Oracle Commercial Negotiation

Oracle Commercial Negotiation

Questions for your Contracts Department

  • Do you have the commercial expertise to successfully develop, negotiate and close Oracle license deals ?
  • Are you able to agree on commercial terms to mitigate potential risks from licensing and contractual pitfalls ?
  • Is your Procurement Manager capable of eliminating commercial and contractual uncertainties of the future ?

If your answer is NO to the above questions, we are here to help. Oracle is widely seen as the toughest vendor in negotiations with technology buyers. The initial challenges that are faced by a typical customer is usually Oracle sales rep’s unwillingness to negotiate licensing policies that would seem unreasonable to the average buyer. The vendor’s contractual amendments are typically most tightly controlled.

Oracle Commercial Negotiation

What’s The Risk ?

When a commercial deal is being drafted, Oracle is highly inclined to bundle as many of its hardware, software, database, middleware and application solutions in a single deal and grow it as big (with a higher-than-normal discount) as possible. Those customers who overlook this Oracle strategy will get the best deals, however ultimately become more locked-in to Oracle (as a platform) and annual maintenance costs.

Unfortunately, we still find customers who overlook these financial risks and believe in the bundled buying strategy to get the best discounts for products (as part of the larger deal) that they will probably never ever use. Most customers fall into the trap of not knowing their buying options and trying to negotiating higher discounts on a larger deal comprising products that are not needed in the foreseeable future, thereby unnecessarily inflating the annual maintenance costs.

Oracle Commercial Negotiation

Don’t Wait until the Year-End

Waiting for the end of the financial year-end might not always be the best idea, especially if the commercial deal value is not considered “large enough” by Oracle and its sales reps. Organizations should treat Oracle negotiations as projects and must ensure that all possible bases are well-understood and covered.

Oracle Commercial Negotiation

How We Can Help

  • During planning phase while considering suitability, quantity, metric and type of Oracle licenses.
  • When the commercial terms and contractual negotiations related to an Oracle deal are in progress.
  • The annual support cost needs to be re-adjusted at the end of the annual technical support period.

Oracle Commercial Negotiation

Why Konnagar ?

Konnagar assists customers with our relevant expertise and vast experience on Oracle commercial and licensing know-how, that are critical to the customers’ financial edge over the vendor during the negotiation process. We work closely with the customer’s Legal, Approvals and Contracts functions, and advise on general and specific commercial issues that have already been previously identified and successfully negotiated for other customers.

By communicating on Optimal Practices, we advise customers in developing commercial strategies that are in line with their budget and Oracle’s business practices. We advise on price-hold, back-support and other contractual pitfalls, along with supporting and leading commercial negotiations where necessary. Dealing-with-Conflict in a constructive manner is an invaluable skill-set we provide.


Sibaji is a real expert in Oracle licensing. He provided us with excellent advice that resulted in some very large cost savings.

— Chief Technology Officer (FTSE 250 Digital Rights Business – UK)