Buying Oracle Software via Resellers: Pros and Cons

Buying Oracle Software via Resellers: Pros and Cons

Buying Oracle software through a value-added reseller (VAR) can result in significant cost savings and increased flexibility.

Oracle-authorized resellers consistently offer about 30% off list prices for licenses, regardless of deal size, and can provide extended payment terms that Oracle’s direct sales often won’t.

However, there are trade-offs: support renewal costs via resellers tend to increase in the second year (often by ~10–15% more than in year one), and contract terms are typically standard Oracle agreements with limited room for customization.

This article examines the pros and cons of purchasing Oracle licenses through resellers and provides guidance on when a reseller approach is suitable for your organization.

Understanding Oracle Reseller Purchases

Oracle’s Reseller Channel:

Oracle works with a network of certified VARs who resell its software licenses and first-year support. These resellers are part of the Oracle PartnerNetwork and are authorized to quote and deliver Oracle licenses to end customers.

For the customer, buying through a reseller means you’re still getting official Oracle licenses (under Oracle’s standard license terms), but a partner handles the transaction. The VAR typically purchases the licenses from Oracle at a discount and resells them to you.

Full Use Licenses:

Resellers primarily sell “full use” perpetual licenses – the same type you’d get directly from Oracle, not limited or embedded licenses tied to specific applications.

Ensure that the reseller confirms you are receiving full-use licenses under Oracle’s standard terms and conditions.

In practice, you will likely be asked to sign Oracle’s standard license agreement or confirm you’re already covered by one.

The reseller’s role is primarily commercial, providing pricing and billing flexibility, while the legal terms and usage rights remain governed by Oracle’s policies.

Global Consistency:

Oracle’s channel program is global, so whether you’re in the US or EMEA, the basics are similar. The ~30% partner discount and standard contract framework apply in all regions. However, local VARs can invoice in local currency.

They may adapt to regional procurement norms (for example, European customers may receive invoicing from a local country entity, which helps meet tax and compliance requirements).

The core benefits and drawbacks of using a reseller remain consistent worldwide.

Guaranteed 30% Discount via Resellers

One of the primary advantages of purchasing through an Oracle reseller is the potential for cost savings.

Oracle VARs receive a standard discount (usually 30% off Oracle’s list price) on all license orders, regardless of the size of the deal.

This means the reseller can immediately offer significant savings off list without lengthy negotiations.

For organizations with smaller or medium-sized purchases that may not qualify for significant direct discounts, the reseller route offers a substantial discount upfront.

• Predictable Pricing: The ~30% discount is fixed and predictable. Unlike Oracle’s direct sales (where discounts might range anywhere from 0% to over 50% depending on your negotiation leverage, timing, and volume), the reseller model guarantees a baseline discount on any purchase. This simplifies budgeting – you know you’ll get at least 30% off list price through the channel.
• Example – License Cost Savings: If an Oracle Database Enterprise Edition license lists at $47,500 per processor, a VAR could sell it for roughly $33,250 (30% off). Therefore, an order for four processors (listed at $190,000) would cost approximately $133,000 through a reseller, compared to the full $190,000 list price if purchased directly without a discount. Even if you might negotiate some discount directly, the reseller’s automatic 30% often beats Oracle’s initial direct offer, especially for modest quantities.

High-Volume Deals: Resellers can sometimes negotiate even larger discounts from Oracle for you if the deal is big enough.

The standard partner margin is 30%, but for a very large purchase, the reseller may work with Oracle to secure an additional break (for instance, an extra 5–10%).

However, Oracle’s policy is that the partner must still obtain approval for any discount beyond the standard 30%.

In practice, while 30% is the floor, the ceiling might be somewhat higher for strategic or high-value deals, but usually not as high as the steepest discounts Oracle’s own sales teams might grant for a huge enterprise deal.

Keep in mind that if your purchase is extremely large (e.g., a multi-million-dollar enterprise agreement), Oracle may be willing to offer discounts of 40–60% or more in a direct deal under the right conditions.

The reseller’s fixed margin model means they won’t typically reach those extreme discount levels.

In other words, for everyday license needs, the reseller’s deal is hard to beat, but for “mega-deals,” direct negotiation could potentially yield a bigger one-time discount.

Real-World Pricing Comparison: The table below presents a simplified comparison of a $100,000 list-price software purchase under various scenarios.

It shows the upfront license cost, first-year support, and second-year support renewal in each case (assuming Oracle’s standard support rate of 22% of license cost and typical support increases).

This highlights how a reseller’s standard discount compares to Oracle’s direct pricing at various discount levels:

Assumptions: Oracle’s direct renewal support increase is estimated at ~4% annually for illustration. The reseller scenario assumes a 10% uplift on the second-year support (explained in the next section).

As shown, a routine 20% direct discount doesn’t match the reseller’s 30% – the VAR route saves approximately $14,500 more over two years compared to a 20% direct discount. Only a very steep direct discount (40% or more) would beat the reseller’s pricing in this example.

That level of discount is typically only achieved in very large or strategic deals.

For many customers, the convenience of an automatic 30% discount offered by the reseller is the best value, eliminating the need for protracted negotiations.

Flexible Payment Terms Through VARs

Another key pro of using a reseller is flexible payment terms. Oracle’s standard direct terms are typically Net 30 days from invoice, meaning you must pay the full amount within 30 days of receiving the invoice.

Oracle is generally inflexible regarding payment schedules, unless you negotiate a special arrangement or utilize Oracle Financing.

By contrast, many resellers can accommodate more lenient payment plans to align with your budgeting needs:

• Extended Payment Periods: It’s common for VARs to offer Net 45, Net 60, or even longer payment terms on request. For example, instead of paying within 30 days, a customer might be given 60 or 90 days to settle the invoice. This can help with internal cash flow and procurement processes. The reseller has discretion to extend credit because they manage the customer relationship (often, the VAR will still owe Oracle on their side, but they take on the risk to give you more time).
• Installment Plans: For larger purchases, some resellers may offer structured payments – e.g., splitting the payment into two or three installments over a few months or a year. Oracle’s direct sales typically won’t split a license purchase into installments without involving a formal financing contract. A VAR, however, may structure the deal so you pay a portion upfront and the remainder at agreed milestones (especially if you have a budget that spans quarters).
• Financial Flexibility: Resellers want your business and often have financing partners or the ability to be creative in billing. They might bundle first-year support or services and allow those to be paid on a deferred schedule. They might also invoice in local currency or accommodate purchase orders in ways Oracle wouldn’t. All of this can be extremely helpful if your organization has strict budgeting cycles or needs to synchronize expenditures with a project timeline.
• Example – Payment Term Benefit: Consider a $1 million Oracle license purchase that, if purchased directly, requires a $1 million payment due within 30 days. Through a reseller, you might negotiate to pay $500,000 on order and $500,000 after 90 days, easing the quarterly budget impact. Or simply get 60 days instead of 30, effectively giving you an extra month to process payments without penalty. This kind of flexibility can make the difference in getting a deal approved internally.

Caution: While extended terms are a perk, ensure you clarify them in the purchase agreement or quote to avoid any misunderstandings.

The reseller’s ability to offer long payment terms might depend on their credit and relationship with Oracle (they cannot delay paying Oracle too long themselves). Always confirm the agreed payment schedule in writing.

Support Renewals and Second-Year Costs

When purchasing Oracle licenses, you must also purchase the first year of support, which includes technical support and software updates (typically priced at 22% of the net license fee).

In a reseller transaction, the VAR will include the first-year support as part of the order.

The difference comes at renewal time (year two and beyond):

• Year 1: Initially, the reseller handles the sale of support along with the licenses. You pay the support fee to the VAR (who passes it to Oracle). That first year’s support cost benefits from the license discount indirectly, since support is calculated as 22% of the discounted license price. For example, if a license list is $100,000 and you paid $70,000 (30% off), the first-year support is $15,400 (22% of $70,000) instead of $22,000 (22% of the full list price). So you effectively saved on support in the first year as well.
• Year 2 and Beyond: After the first year, Oracle takes over the support renewals directly with the customer. Oracle will send you a renewal quote/invoice for annual support in the future. Here’s a crucial point: if you bought through a reseller, Oracle often applies an uplift on the second-year support fee. Historically, this uplift was approximately 10% above the initial year’s payment; recently, Oracle has increased this to around 15%. This means your year-two renewal bill can jump significantly. Using the same example, that $15.4k first-year support could become roughly $17k+ in the second year (a ~10% increase, aligning it closer to Oracle’s list-based support fee). In subsequent years, Oracle typically applies a standard small annual increase (3–5% annually) to account for inflation or policy changes.
• Why the Increase? Oracle’s rationale for the second-year bump on indirect purchases is to normalize support revenues. Essentially, Oracle gave a discount on the license (and thus support) in the first year via the partner, and they “catch up” a bit in year two. It’s important to note that if you had bought directly from Oracle at a similar 30% discount, you could often negotiate to lock the support pricing without that immediate 10–15% uplift (Oracle usually wouldn’t raise support by 15% after one year in a direct deal – they’d more likely keep it flat the first renewal or only add a small cost-of-living increase). So this is a specific cost consideration when using a reseller.
• Plan for Support Costs: When evaluating the reseller option, factor in that your ongoing support expense will be higher in year two. Over a multi-year period, the savings from the upfront discount may still far outweigh this uplift, but budget owners should be aware to avoid surprises. For instance, if you saved $30,000 on license fees upfront via the VAR, an extra $1,500 in year-two support is probably acceptable, but you should anticipate it. It’s wise to ask the reseller in advance what your renewal quote is expected to be for year two. A good reseller will be transparent and might even help coordinate the renewal process with Oracle to ensure you’re prepared.
• Renew through Reseller or Direct: After year one, you usually renew support directly with Oracle (they will send the support contract renewal to you for payment). Some customers ask the reseller to manage the renewal on their behalf. Resellers can request a support renewal quote from Oracle on your behalf and pass it to you. They are not allowed to markup Oracle support fees, so you’d pay the same as if Oracle quoted you directly. The benefit of involving a reseller in renewals might be convenience or help in verifying the quote’s accuracy, but don’t expect further discounts on support – Oracle doesn’t offer discounts on annual support renewals (aside from the standard loyalty programs, such as Oracle Support Rewards for cloud usage, which is a separate topic).

In summary, support costs via resellers have a front-loaded benefit (lower first-year cost) but a steeper jump at first renewal. Ensure you budget for this increase and factor it into your cost comparisons.

Even with the uplift, the overall TCO often still favors the reseller if Oracle hadn’t given you an equivalent upfront discount directly. Just go in with your eyes open on the support fees over time.

Contract Terms and Negotiation Limitations

When you buy directly from Oracle, large deals often involve negotiating not only the price but also the contract terms and conditions.

For example, enterprises might negotiate caps on support fee increases, special rights (such as portability of licenses or permissive audit terms), liability clauses, and other provisions.

Purchasing via a reseller changes the dynamic on contract negotiations:

• Standard Oracle Terms: In a reseller transaction, the license and support are governed by Oracle’s standard agreements (typically an Oracle License and Services Agreement or an Oracle Master Agreement, which you either have on file or must sign). The reseller can’t unilaterally change Oracle’s standard licensing terms – they are essentially reselling Oracle’s contract. This means the legal terms (usage rules, restrictions, warranties, etc.) will almost certainly be Oracle’s out-of-the-box terms. If you require any custom contractual provisions, it’s more complicated with a reseller in the middle.
• Limited Room for Changes: Oracle itself is sometimes willing to modify terms for a big direct deal (for instance, adding a provision to cap support increases at 0–3% for a few years, or allowing some flexibility in license deployment). However, if you’re buying through a VAR, Oracle sees it as an indirect sale – there’s generally less appetite to negotiate bespoke terms for the end-customer. It’s not impossible: you could negotiate via the reseller and have Oracle issue special amendments or attached terms, but it’s extra legwork and typically only done for substantial deals. Many smaller reseller transactions simply default to standard paperwork to keep things quick.
• Reseller Quotes vs Oracle Order Documents: Be aware that the reseller will provide you a quote or purchase order for the transaction, but ultimately, Oracle will issue the formal license entitlement. Ensure that you understand which documents you’ll be asked to sign. Often, you sign the reseller’s order form and an Oracle customer agreement, if one does not already exist. Ask the reseller to clarify in writing what contract and terms will apply. For example, confirm that you’ll be getting an Oracle license agreement and support contract under standard policies. If you need any specific term (e.g., a price hold on support for 3 years or a special licensing metric), ensure it’s explicitly addressed. Don’t assume a reseller can or will include extra terms unless you request them.
• Negotiation Influence: Using a reseller can sometimes mean you’re one step removed from Oracle’s decision-makers during negotiation. The reseller’s rep will advocate for your deal with Oracle to secure the discount and any concessions. Still, you might not have direct interaction with Oracle’s pricing approval team or legal team. For straightforward deals, this isn’t an issue; however, for complex contracts, it can slow down communication. If you have a savvy VAR, they might streamline things by handling the back-and-forth for you. Just be sure your priorities (whether legal terms or pricing) are communicated to the reseller so they can relay them to Oracle.
• Local Law and Variations: One subtle benefit of purchasing through a local reseller in regions like EMEA is that the reseller may handle some country-specific terms. Oracle’s contracts are fairly global and U.S.-law centric (often governed by California law, for example). Some European customers prefer to buy through a local entity to take advantage of local law or to meet procurement regulations. In such cases, the reseller’s sale might be governed by local law for the commercial aspects, but the underlying Oracle license still references Oracle’s standard terms. If having local governing law or jurisdiction is important to you, discuss this with the reseller – they may structure the paperwork to accommodate this in the purchase agreement (while the Oracle license Terms and Conditions remain standard).

Bottom Line: Expect “vanilla” Oracle terms when buying through a VAR unless you explicitly negotiate otherwise. Suppose your deal requires custom contract language or non-standard terms.

In that case, you may find it easier to engage Oracle directly or involve Oracle’s contracts team via the reseller early on. Always confirm which terms and conditions apply to avoid any surprises after purchase.

Reseller Relationship Benefits and Risks

Beyond price and contracts, there are other pros and cons to consider in the relationship dynamics when using a reseller:

• Single Point of Contact & Value-Add: A good Oracle reseller can act as your single point of contact for all Oracle licensing needs. Many VARs offer value-added services, including license assessments, deployment planning, and audit support. For example, a reseller might help you understand your license compliance position or assist if Oracle initiates an audit. This advisory aspect can be a bonus if the reseller has strong expertise in Oracle licensing. They essentially become your advocate and guide, whereas Oracle’s own sales teams ultimately represent Oracle’s interests.
• Expertise and Guidance: Resellers that specialize in Oracle often employ former Oracle licensing experts or maintain in-depth knowledge of Oracle’s product metrics. They can help ensure you purchase the right licenses (neither over-buy nor under-buy) and may sometimes suggest more cost-effective licensing options. This expertise can prevent costly mistakes. Oracle’s direct reps can also advise you, but remember their incentive is to sell more. In contrast, a trusted reseller might take a more consultative approach to keep your long-term business.
• Handling Audits and Compliance: If Oracle audits your deployment, a reseller partner can be a buffer or advisor. They might help you prepare data, identify unused licenses to offset findings, or negotiate a resolution. Some VARs offer audit defense services as part of their relationship (since they want to help you remain a happy customer). This is a clear benefit if the reseller has the necessary knowledge; be sure to gauge their expertise in Oracle licensing.

On the flip side, consider these potential risks/cons in the reseller relationship:

• Information Sharing: Oracle’s partner agreements require resellers to work closely with Oracle’s own sales organization. VARs often need to register deals and share customer information with Oracle to obtain approval for discounts. This means details about your purchase plans, the products you’re interested in, and even your budget or timeline might be communicated to Oracle behind the scenes. In some cases, Oracle’s direct reps will know you’re working with a reseller on a deal. While this is usually fine (Oracle approves the special pricing after all), it could impact your leverage. For instance, if Oracle’s sales team learns you intend to buy regardless (through the reseller), they may be less inclined to offer a competing direct deal or additional incentives. In extreme cases, an aggressive Oracle rep might even try to approach you directly to undercut the reseller (though Oracle generally tries to respect registered partner deals). Please be aware that any confidential information you share with a reseller may be shared with Oracle. It’s wise to treat a reseller as you would an Oracle sales rep in terms of what you disclose about your strategy or alternatives.
• Conflicts of Interest: Since resellers ultimately rely on Oracle for their margins and business, a subtle conflict of interest may arise. A VAR wants to keep both you (the customer) and Oracle happy. In a tough situation, some resellers might tilt toward Oracle’s position to preserve their partnership status. For example, if there’s a compliance issue, a reseller might gently pressure you to purchase the licenses to resolve it (since that results in a sale for them and Oracle), rather than exploring more customer-favorable tactics. Choose a reseller with a reputation for customer advocacy – one who will push back on Oracle if needed, not just push Oracle’s agenda to you.
• Bargaining Power and Oracle Attention: When you go through a reseller, you might wonder if you’re missing out on any direct concessions from Oracle. Indeed, big enterprise customers sometimes leverage their direct relationship with Oracle to get perks (like advisory hours, free training credits, or inclusion in beta programs). When using a reseller, you’re a step removed from Oracle’s account management. Oracle typically still assigns your account to an Oracle representative (especially for large companies), even if you purchase via partners, as Oracle maintains oversight of the account. But the dynamics change – Oracle knows they’re not dealing with you directly on sales. Some organizations feel this reduces their direct bargaining power with Oracle over time. In reality, if you spend significant money (even via a VAR), Oracle will pay attention – they care about the revenue source regardless. Just ensure you maintain some direct communication with Oracle when needed (for example, during support renewals or if issues arise). You can have the best of both worlds by letting the reseller handle transactions, but still engaging Oracle’s team for strategic discussions or escalations when required.

In summary, a strong reseller partnership can add significant value in terms of service and expertise; however, choose your VAR carefully. Ensure they are truly Oracle-focused experts, not just general software sellers.

And always remember that the Oracle-reseller-customer triangle means information flows among all three; use that to your advantage (e.g., having the reseller lobby Oracle for you) and mitigate any downsides (don’t reveal negotiation fallbacks that you wouldn’t tell Oracle directly).

When to Use a Reseller vs. Buying Direct

Should you buy Oracle licenses through a reseller or directly from Oracle? The answer depends on your situation. Both channels have merits, and savvy customers might even use both strategically.

Here are some guidelines on when each approach makes sense:

• Use a Reseller if… You have a typical license purchase (small or mid-sized deal) and you want a fast, reliable discount with minimal hassle. The reseller route shines for straightforward transactions where a 30% discount upfront, along with some payment flexibility, meets your needs. It’s also ideal if your procurement process prefers working with a familiar local supplier or if you need custom billing arrangements. Additionally, if you value the advisory support a specialized Oracle VAR can provide (such as license optimization tips, audit preparation, etc.), then buying through the reseller provides that extra layer of service that Oracle direct might not offer for free.
• Go Direct if… You are negotiating a very large or strategic deal where you believe you can negotiate deeper discounts or specific contract terms with Oracle. Suppose the potential license volume is substantial (e.g., an enterprise agreement, unlimited license agreement (ULA), or a large cloud subscription commitment). In that case, Oracle’s direct sales leadership may grant concessions exceeding the reseller’s standard 30% to secure the business. Direct deals are also preferable if you have leverage to negotiate special terms (e.g., price holds on support, flexible use rights) that a reseller might not be able to obtain on your behalf. In such cases, engage Oracle’s account team directly — you can always compare their offer to a reseller quote as well.
• Consider a Hybrid Approach: Some organizations use a hybrid strategy. For example, they purchase smaller add-on licenses and renewals through a reseller to obtain easy discounts and service. Still, for a once-in-a-decade large purchase, they negotiate directly to maximize incentives. Remember that you can involve a reseller up to a point and then decide to switch to direct if needed. Just be transparent and ethical (don’t use a reseller purely as a stalking horse; maintain good relationships). Oracle’s rules typically prevent resellers from offering the same ULA or enterprise deal structure that Oracle Direct might (Oracle often retains ULAs directly), so the channel may not even be an option for certain deal types.
• Regional/Local Needs: If local presence, currency, or compliance is important, a local reseller is beneficial. For instance, a U.K. company might prefer to transact with a U.K. reseller entity rather than Oracle Ireland or Oracle US, for tax or legal convenience. In contrast, a U.S. company dealing with Oracle America may not see a difference. Assess if the reseller adds value in handling local requirements or if direct Oracle can accommodate them.
• Long-Term Relationship: Think about your long-term relationship with Oracle. If you want to keep Oracle’s direct sales pressure at bay, a reseller can act as a buffer. On the other hand, if you want a close relationship with Oracle (for influence or partnership reasons), conducting business directly might be worthwhile. It doesn’t have to be all or nothing – you can channel certain purchases through the VAR while still engaging Oracle directly in account reviews or roadmap discussions.

In essence, for many routine purchases, the reseller channel is a convenient and cost-effective choice, whereas for complex, high-stakes agreements, direct negotiation might yield better outcomes.

Evaluate the specifics of each procurement scenario – price, terms, service, and strategic implications – to decide the best route.

Some organizations even request quotes from both Oracle and a reseller for comparison; Oracle is aware of this practice and sometimes sharpens its pencil if it knows a partner’s quote is on the table.

Use that competition ethically to ensure you get the best combination of price and terms for your needs.

Recommendations

• Leverage Resellers for Standard Deals: For typical license purchases or expansions, use an authorized Oracle reseller to take advantage of the standard ~30% discount. This typically outperforms Oracle’s direct pricing for small to mid-sized deals, streamlining the buying process.
• Compare Offers on Big Tickets: For large deals (such as major enterprise agreements or ULAs), obtain pricing from both Oracle directly and a reseller. Use the reseller’s baseline as a benchmark – if Oracle’s direct offer isn’t significantly better, you can fall back to the reseller deal with confidence. If Oracle offers far better terms for a strategic deal, consider going direct for that instance.
• Plan for Support Cost Uplifts: When budgeting, include the expected year-two support increase for licenses bought via a reseller (often 10–15% higher than the first year). Negotiate with Oracle (via the reseller) if possible to limit future support hikes, or at least be financially prepared. Never assume support fees will remain flat after year one in an indirect purchase.
• Negotiate Payment Terms: Don’t hesitate to ask the VAR for better payment terms if you need them. Whether it’s net 60 days, split payments, or aligning payments with project milestones, articulate your needs. Resellers often have wiggle room to accommodate requests that Oracle wouldn’t normally entertain directly.
• Clarify Contractual Terms in Writing: Ensure the reseller provides written documentation outlining the applicable terms and conditions. Verify if you’ll be signing Oracle’s standard license agreement and if there are any additional terms or exceptions. If you require a specific clause (e.g., governing law, support cap), obtain confirmation to determine whether it can be included. Don’t rely on verbal assurances; ensure the agreed-upon terms are included in the order paperwork.
• Choose Resellers with Oracle Expertise: Select a VAR that has a strong Oracle-focused practice (certifications, experienced staff, references). They should guide you on license sizing, compliance, and should understand Oracle’s product metrics. A knowledgeable reseller can protect you from over-purchasing and provide advice that saves money in the long run.
• Guard Sensitive Information: When working with a reseller, assume that major details might be shared with Oracle. Be strategic about what you reveal regarding budgets, deadlines, or alternative plans. It’s fine to leverage the reseller to negotiate, but you don’t want Oracle to have insight into your absolute willingness to buy or your urgency beyond what’s necessary. Maintain some negotiation leverage.
• Balance Direct Engagement: Even if you primarily buy via resellers, keep a line of communication with Oracle (for support issues, strategic product updates, etc.). This dual engagement ensures you get reseller benefits without becoming invisible to Oracle. You want Oracle to value your account (so they approve good discounts and support you well) even if the sales are through a partner. A balanced approach maintains the health of both relationships.
• Evaluate Total Cost of Ownership: Consider the multi-year perspective. Upfront savings are great, but also consider factors such as support renewals, potential audit costs (where a reseller might be helpful), and any value-added services. Sometimes, paying slightly more through a reseller might be worth it if they, for example, include free license management consulting. Conversely, if Oracle Direct is offering a package deal with cloud credits or additional products, weigh those incentives as well. Make a side-by-side comparison of scenarios before finalizing.

Checklist (5 Key Actions Before Buying via Reseller)

1. Gather Both Quotes: Obtain pricing from your Oracle account manager and at least one reputable reseller. Compare the discounts and terms offered to ensure you’re choosing the best financial option.
2. Ask About Support Renewal Costs: Before you commit, ask the reseller how year-two support will be handled and priced. Ensure you are aware of the expected renewal fee from Oracle so you aren’t caught off guard later.
3. Confirm License Type & Agreement: Verify that the purchase will be for full-use Oracle licenses under Oracle’s standard customer agreement. Get confirmation of any specific terms or conditions in writing (especially if you need something non-standard).
4. Negotiate Payment and Invoicing Needs: Discuss any required payment terms (e.g., extended payment or staged payments) with the reseller upfront. Also, confirm the invoicing entity and currency to avoid any procurement or tax issues.
5. Evaluate Reseller’s Value-Add: Choose a reseller that offers more than just order fulfillment. Consider their Oracle expertise, willingness to support in audits, and additional services. A strong VAR partner should act as an advisor, not just a sales intermediary.

FAQ

Q1: Do Oracle resellers always offer a 30% discount on licenses?
A1: Yes – a 30% off list price is the standard minimum discount that authorized Oracle resellers receive and can pass to customers. This discount is essentially guaranteed regardless of deal size. In many cases, the reseller will indeed offer the full 30% savings to win your business (they make their margin from Oracle’s side). For very large deals, some resellers can negotiate even better than 30% with Oracle’s approval, but 30% is the baseline you can count on. By contrast, Oracle’s direct discount for a small purchase may be significantly less or even zero, making the reseller option typically cheaper upfront for most routine purchases.

Q2: Can Oracle’s direct sales beat the reseller pricing?
A2: It depends on the size and timing of the deal. Oracle’s direct sales team can sometimes offer deeper discounts if you have a large strategic purchase or end-of-quarter leverage. For example, on a multimillion-dollar deal, Oracle might offer 40-50% off or include extra products – something a reseller with a fixed margin might not be able to match. However, for everyday purchases that aren’t exceptionally large, Oracle reps often won’t go as high as 30% off without a fight. Oracle may intentionally route smaller deals through partners and reserve its biggest concessions for huge enterprise agreements. In summary, for normal deals, the reseller’s 30% is hard to beat; for a huge deal, it’s worth challenging Oracle directly to see if they’ll outdo the standard reseller terms. You can always compare both and choose the better offer.

Q3: What happens with support and maintenance fees if I buy through a reseller?
A3: Initially, you pay the first year of support to the reseller along with the licenses. This first-year support cost will be based on the discounted license price (so you benefit from the discount). After that, Oracle will handle support renewals directly with you. Importantly, Oracle will likely increase the support fee in the second year, typically about 10–15% higher than what you paid in year one. This policy applies to indirect (reseller) deals, aiming to align support fees with Oracle’s list pricing. In subsequent years, Oracle may then apply normal annual inflationary increases (often around 3-4% per year). So, expect a larger jump at the first renewal. Be sure to budget for this and consider it when calculating the long-term cost of buying through a reseller.

Q4: Can I negotiate contract terms (such as special rights or support caps) when purchasing through a VAR?
A4: It’s more challenging. When you buy through a reseller, you’re usually accepting Oracle’s standard terms and conditions for the licenses and support. Resellers don’t have the authority to alter Oracle’s legal terms; any change would have to be approved by Oracle. In a routine reseller transaction, it’s uncommon to have custom clauses – the deal is meant to be quick and standard. If you have specific terms you need (for example, a cap on support price increases or a tailored usage right), you must communicate that to the reseller so they can work with Oracle on it. For a sufficiently large deal, Oracle may agree to an addendum even if you’re purchasing through a partner, but it will require additional negotiation. Generally, if contract flexibility is a top priority, engaging Oracle directly might be easier. At the very least, ensure the reseller clearly outlines what terms you are getting and not getting. Don’t assume anything is included unless it’s in writing.

Q5: Are there any regional differences (US vs. EMEA) in using Oracle resellers, or are there any specific things to watch out for with VARs internationally?
A5: The fundamental program is global – an Oracle reseller in the US or EMEA will have access to the standard 30% discounts and follow Oracle’s overall rules. So the core pros/cons remain the same worldwide. However, there are a few practical differences: In EMEA or other regions, having a local reseller can simplify currency and tax handling (e.g., a European customer buying from a European VAR will receive an invoice in Euros, with VAT handled properly, etc.). Local resellers might also be familiar with regional legal requirements (like data privacy or local public sector procurement rules) and adjust accordingly. Language support and local presence are benefits if you need on-site help. One thing to note: Oracle’s policy of raising the second-year support by 10-15% for reseller deals is a global policy, so that is not region-specific – a European customer would face the same support uplift scenario as a US customer. Lastly, if your company operates globally, you might consolidate purchases through one major reseller who can transact in multiple countries, or you might use regional VARs – just ensure each reseller is authorized for the specific Oracle products and regions. In summary, there’s no drastic difference in how the reseller channel works between the US and EMEA, but choose VAR partners with appropriate local expertise for your needs.

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