Oracle Audit Negotiations – 4 Steps to a settlement

Oracle Audit Negotiations: How to Succeed

• Review Audit Report: Identify errors to reduce compliance gaps and challenge Oracle’s accuracy.
• Negotiate Discounts: Leverage findings and inaccuracies to get better terms.
• Reject Backdated Support Fees: Sales reps can waive these fees and highlight long-term partnership value.
• Use Quarter Ends: Time negotiations around Oracle’s fiscal quarter for better deals.

Oracle Audit Report Review

Always review the audit report meticulously. Errors are common, and identifying them serves two crucial purposes:

• Reduce the Compliance Gap: You can lower alleged non-compliance fees by spotting inaccuracies.
• Question Oracle’s Accuracy: Highlighting errors puts Oracle on the defensive, making them more cautious and potentially more flexible in their assertions and demands.

Negotiating Discounts

End-of-audit discounts are attainable. Don’t assume the price is set in stone because you’re at the audit’s conclusion.

• Leverage Findings: Use your findings and any Oracle inaccuracies to negotiate better terms.
• Compliance Issues as Leverage: Use any compliance issues as a negotiation tool rather than just accepting Oracle’s first proposal.

Backdated Support Fees

Refuse to pay backdated support fees. This is a common area where companies can push back with significant success.

• Sales Reps’ Incentives: Sales reps are not compensated for these fees. Knowing this can be a powerful negotiation lever. They often have the discretion to waive these fees to close a deal or maintain a relationship.
• Long-term Partnership: Highlight the long-term value of your partnership with Oracle as a reason for waiving these fees.

Leverage Oracle’s Quarter Ends

Timing can be everything. Like many companies, Oracle has aggressive sales targets at the end of each fiscal quarter.

• End-of-Quarter Flexibility: Sales reps and managers are often more willing to offer discounts, waive fees, or offer better terms to close deals before the quarter ends. Plan your negotiations to coincide with these periods for maximum leverage.

Key Takeaways

When dealing with Oracle on licensing, audits, or cloud services, remember:

• Diligent Review: Diligence in audit report review can significantly reduce compliance costs.
• Active Discount Negotiation: Discount negotiations should be pursued actively, even late in the audit process.
• Stand Firm: Stand firm against backdated support fees; they are often negotiable to a large extent.
• Timing: Timing your negotiations around Oracle’s fiscal calendar can lead to better deals.

By adhering to these strategies, you position yourself to navigate Oracle negotiations with greater confidence and success, potentially saving your organization significant resources while maintaining a favorable relationship with Oracle.