What are Oracle OCI Support Rewards?
- Incentive Program: Rewards customers for using Oracle Cloud Infrastructure (OCI).
- Eligibility: An active support contract for on-premise software and an OCI annual flex contract is required.
- Savings: Earn 25% of every dollar spent on OCI towards reducing on-premise support fees.
- Management: Customers must actively claim and apply rewards.
Oracle Support Rewards
Oracle OCI (Oracle Cloud Infrastructure) Support Rewards is an incentive program introduced by Oracle that is designed to encourage existing customers to migrate workloads onto Oracle’s cloud platform.
Through this program, Oracle customers with active support contracts can earn credits (“Support Rewards”) that can be applied against their Oracle software support renewal fees.
The program offers a direct way for Oracle customers to reduce their ongoing annual support costs, aligning Oracle’s objectives of cloud adoption with customers’ desires for cost savings.
This article explores OCI Support Rewards in detail, including how they work, eligibility requirements, specific ways end customers can save money, common limitations, potential risks, practical examples, and best practices for maximizing the program’s benefits.
Oracle OCI Support Rewards
Oracle introduced OCI Support Rewards to provide cost incentives for customers who migrate workloads to Oracle Cloud Infrastructure. Support Rewards essentially represent monetary credits earned by using OCI services. These credits directly reduce the customer’s Oracle software support renewal invoices.
Key elements of OCI Support Rewards include:
- Credit-based incentive: Rewards are earned through credits applied against Oracle support fees.
- Linked to cloud consumption: Rewards correlate directly with the customer’s OCI service usage.
- Targeted at existing customers: Primarily aimed at customers with existing Oracle software support agreements.
- Renewal discounting: Applied annually at support renewal, lowering total support expenses.
How Oracle OCI Support Rewards Work
Earning OCI Support Rewards
Oracle OCI Support Rewards are earned based on customer spending on eligible Oracle Cloud Infrastructure services. Typically, the amount of Support Rewards earned is directly proportional to the customer’s OCI consumption:
- For every dollar spent on OCI services, customers earn a percentage back as Support Rewards (commonly at a 25% rate, though Oracle occasionally varies promotions or terms).
- If the customer holds certain Oracle agreements, like an Unlimited License Agreement (ULA), they may earn higher percentages, such as 33%, depending on negotiated terms.
Example Scenario:
- A customer spends $100,000 annually on OCI services.
- At a 25% Support Reward rate, the customer earns $25,000 in Support Rewards.
- Customers can apply this $25,000 directly to reduce their Oracle software support renewal fees.
Applying OCI Support Rewards
Support rewards are applied annually during Oracle support renewal. Oracle customers must actively track and apply these earned credits against annual renewal invoices. The credits offset support fees for eligible Oracle technology products covered under the customer’s existing support agreements.
- Support Rewards can only be applied to certain Oracle products covered by existing support contracts.
- Oracle clearly outlines eligible products and renewal processes to avoid confusion.
Eligibility for Oracle OCI Support Rewards
To participate in OCI Support Rewards, customers typically must meet certain eligibility criteria:
- An active Oracle software support agreement must be established.
- Oracle Cloud Infrastructure usage must meet the minimum spend thresholds defined by Oracle.
- Oracle usually restricts rewards to specific technology products (e.g., Oracle Database, Middleware, E-Business Suite, and others explicitly listed).
Oracle’s documentation and agreements define specific eligibility conditions. Customers should verify these clearly to avoid misunderstandings or missed savings opportunities.
How End Customers Can Save Money with OCI Support Rewards
Customers can realize substantial savings through OCI Support Rewards in several practical ways:
Reducing Annual Oracle Support Costs
The primary benefit customers gain from OCI Support Rewards is the direct reduction of their Oracle software support renewal costs:
- Rewards are directly subtracted from annual support renewal invoices, reducing cash outflows.
- Over multiple years, consistent OCI usage and earned rewards can significantly decrease total support expenditure.
Example Savings Scenario:
- An enterprise with an annual Oracle support invoice of $500,000 spends $400,000 annually on OCI.
- At a 25% reward rate, the enterprise earns $100,000 in annual credits.
- Due to applied credits, Oracle support renewal costs are reduced from $500,000 to $400,000.
- Over five years, this equates to $500,000 saved purely through OCI Support Rewards.
Combining OCI Support Rewards with License Optimization
OCI Support Rewards can be strategically combined with software license optimization and renegotiation activities to further amplify savings:
- Organizations consolidating or reducing Oracle licenses can significantly lower future support invoices, maximizing the percentage reduction achieved through OCI Support Rewards.
- Strategically migrating expensive workloads to OCI can simultaneously reduce hardware and support expenses.
Leveraging Rewards for Cloud Migrations
Customers already planning cloud migrations can leverage OCI Support Rewards to offset the migration and ongoing support costs:
- Customers moving workloads to OCI naturally generate OCI spend, resulting in Support Rewards.
- Savings gained through OCI Support Rewards can subsidize or reduce total migration expenses.
Common Limitations and Considerations of OCI Support Rewards
While OCI Support Rewards offer cost-saving potential, organizations should understand several limitations and considerations to fully benefit from the program:
Product Eligibility Restrictions
Oracle explicitly limits Support Rewards applicability to specific products covered by Oracle technology support agreements. Not all Oracle products, especially legacy or acquired solutions, qualify for Support Rewards.
- Customers should confirm product eligibility clearly to avoid missed savings expectations.
- Ensure clarity around eligible support agreements before committing substantial workloads to OCI.
Minimum OCI Spend Requirements
Oracle often imposes minimum annual OCI spending thresholds to qualify for Support Rewards. Organizations with smaller OCI footprints might find savings limited or negligible.
- Evaluate OCI consumption carefully against eligibility requirements to ensure the financial benefit outweighs increased cloud spending.
Reward Expiration and Use Limitations
Support Rewards must be applied within defined timeframes, usually annually at renewal. Oracle may impose usage conditions or expiration rules that can limit long-term accumulation or flexible usage:
- Unused OCI Support Rewards might expire annually if not fully utilized.
- Organizations must proactively manage and utilize their earned rewards annually.
Potential Risks and Challenges in Managing OCI Support Rewards
Organizations should proactively manage several risks associated with OCI Support Rewards:
Overspending on OCI for Rewards
The incentive structure of OCI Support Rewards can unintentionally encourage organizations to overspend on Oracle cloud services merely to achieve reward levels, leading to higher total expenditure despite support savings.
- Regularly evaluate overall IT and cloud spending strategically, beyond just reward credits.
Misaligned License Strategy
Companies might adopt OCI prematurely or without a comprehensive license management strategy, resulting in fragmented software licensing and reduced overall benefit from OCI Support Rewards.
- Ensure OCI adoption aligns with broader license management, cost optimization, and infrastructure planning strategies.
Compliance and Audit Exposure
Increased Oracle cloud adoption might lead Oracle to audit on-premises licenses more rigorously, potentially offsetting savings from OCI Support Rewards.
- Maintain strict internal compliance management alongside OCI adoption to avoid unintended audit-related expenses.
Best Practices for Maximizing Oracle OCI Support Rewards
To achieve maximum benefit from OCI Support Rewards, organizations should follow several best practices:
Carefully Plan OCI Adoption
- Evaluate how OCI fits into your overall IT strategy.
- Balance OCI spending to match business needs, avoiding unnecessary cloud expenditures purely for rewards.
Regularly Track and Monitor OCI Spending and Rewards
- Maintain detailed tracking of OCI spending and corresponding Support Rewards earned.
- Proactively manage and apply OCI Support Rewards annually to maximize renewal savings.
Align OCI Rewards with Broader Licensing Strategy
- Align OCI migrations with Oracle software license optimization activities.
- Reduce unnecessary licenses to lower future support invoices, enhancing the impact of OCI Support Rewards.
Negotiate OCI Contracts and Reward Terms Strategically
- During OCI contract negotiations, clarify and confirm reward terms, percentage rates, eligibility, and conditions in writing.
- Seek higher OCI Support Reward percentages (e.g., 33% instead of 25%) during negotiations, especially for larger commitments.
Leverage Independent Expertise
- Engage independent Oracle licensing and cloud advisors to validate savings assumptions and optimize OCI utilization.
- External expertise helps identify realistic OCI migration paths and ensures rewards align effectively with software license management objectives.
Practical Examples and Scenarios
Scenario 1: Enterprise Database Migration Savings
- An enterprise spends $1 million annually on Oracle support and $800,000 on OCI.
- At a 25% reward rate, the enterprise earns $200,000 annually in Support Rewards.
- Annual Oracle support renewal cost is reduced from $1 million to $800,000, saving $1 million over five years.
Scenario 2: Strategic License Optimization with OCI
- A company reduces Oracle licenses through careful consolidation, dropping annual support from $600,000 to $400,000.
- OCI spends $400,000 annually, earning $100,000 annually in OCI Support Rewards.
- The effective annual support cost is reduced from $400,000 to $300,000, combined with savings from license optimization and OCI rewards.
Final Recommendations for Managing Oracle OCI Support Rewards
To benefit fully from OCI Support Rewards, organizations should:
- Thoroughly understand reward terms, eligibility, and restrictions.
- Align OCI adoption with clear licensing strategies and IT infrastructure plans.
- Proactively track, manage, and apply rewards annually at renewal.
- Regularly evaluate the program’s cost-benefit balance objectively.
By carefully managing OCI Support Rewards with clear strategies, organizations can effectively reduce Oracle software support costs and ensure maximum value from their Oracle software and cloud investments.
