Oracle ULA Case Study: Spanish Telecom Giant Secures Better Terms in Oracle ULA Renewal
Oracle ULA Case Study – Spain’s Largest Telco Saves Millions with a Smarter ULA Renewal
Background
- Industry & Country: Telecommunications, Spain
- Company Profile: One of Spain’s largest telecom providers, with 30+ million subscribers across mobile, internet, and TV services (operations also in Latin America)
- Oracle Environment: Massive Oracle Database clusters underpinning billing, customer data, and network management systems; also uses Oracle Middleware and OSS/BSS applications critical to service delivery
- ULA Context: The existing 3-year Oracle ULA is nearing expiration, covering core database and middleware. The company’s Oracle usage had grown steadily, and leadership was evaluating whether to renew the ULA or explore other options.
Challenges
- Mission-critical dependence: Oracle systems are at the heart of the telecom’s operations. Any licensing constraint or shortfall could directly impact customer services (e.g., billing cycles, uptime). They had little tolerance for risk, making a strong case for renewal – but only if it could be achieved at a reasonable cost.
- Cost control pressure: Telecom is a highly competitive, low-margin industry. The initial Oracle ULA renewal quote from Oracle would significantly increase annual IT spend. The CFO set a mandate to reduce this cost if they were to renew, or else consider alternatives.
- Technology changes: The company was starting to adopt 5G network technologies and planned to launch new digital services. These initiatives would require cloud deployments and possibly new Oracle software modules not included in the original ULA. A renewal is needed to account for such evolving requirements (like cloud flexibility and added products), otherwise the ULA might not serve future needs.
- Negotiation leverage: Oracle knew this client was dependent on its technology, potentially weakening the client’s bargaining position. The telecom needed to approach the Oracle unlimited license negotiation armed with data and a credible fallback plan to avoid simply accepting Oracle’s terms.
How Oracle Licensing Experts Helped
- Comprehensive usage review: Oracle Licensing Experts worked closely with the telecom’s IT architects to map out current Oracle usage and forecast needs for the next 3–5 years. This review revealed exactly how much of the Oracle ULA capacity was being used and what new deployments (for 5G and digital services) were on the horizon. By quantifying usage, OLE gave the client hard numbers to use in negotiations, rather than relying on Oracle’s figures.
- Defined renewal requirements: Based on the telecom’s strategic plans, OLE drew up a list of must-haves for the renewed ULA: inclusion of specific Oracle products for 5G operations support, rights to deploy Oracle databases on public cloud infrastructure (AWS/Azure) without penalty, and a cap on annual support cost increases. Having these requirements clearly outlined turned the negotiation into solving for the client’s needs, not just Oracle’s standard offer.
- Alternative strategy: In parallel, Oracle Licensing Experts helped the client develop a credible Plan B. They assessed scenarios like certifying out of the ULA and using existing licenses, or even migrating certain systems to open-source databases if Oracle wouldn’t budge. This analysis strengthened the client’s position – Oracle was made aware that the company was prepared to walk away rather than accept a bad deal.
- Skilled negotiation: During talks with Oracle, the OLE team led the charge in pushing for better terms. They used market benchmarks to challenge Oracle’s pricing and presented the usage data to justify a lower cost. OLE negotiators also leveraged Oracle’s eagerness to keep such a large client. For instance, they negotiated significant Oracle Cloud credits to be bundled into the deal at no extra charge, aligning with the client’s move toward the cloud. Ultimately, they achieved a renewal agreement that met all the key requirements: an expanded product scope, cloud deployment rights, and a more palatable price point.
Outcome
- Tailored ULA renewal: The telecom signed a renewed 3-year Oracle ULA that was custom-tailored to its operational and financial needs. It now includes the additional Oracle products needed for 5G rollouts and allows unlimited deployment in approved public clouds.
- 15% cost reduction: Compared to the initial quote, the final deal reduced the total cost by about 15%. This represented several million euros in savings over the term. The CFO’s target was met, turning what would have been a budget increase into a slight reduction in annual Oracle spending.
- Cloud-ready and future-proof: With cloud deployment rights secured, the company can migrate certain Oracle workloads to AWS or Azure as planned, without incurring license penalties. The inclusion of new Oracle modules means the ULA will continue to cover the software underpinning new digital services. The telecom’s Oracle licensing is now aligned with its technology roadmap.
- Positive vendor relationship: By leveraging Oracle Licensing Experts, the client not only got a better deal but also maintained a professional relationship with Oracle. The negotiation was firm but collaborative, resulting in an agreement both sides consider a win. Internally, the successful renewal is seen as a strategic victory that supports the company’s innovation while keeping costs in check.
Executive Quote
“Our operations run on Oracle, so walking away from a ULA wasn’t a simple option. But neither was swallowing a huge price increase. Oracle Licensing Experts were instrumental in shifting the balance in our favor. They showed Oracle we had options and backed every ask with data. The result is a ULA renewal that’s actually tailored for us – we got the cloud flexibility and products we need, and at a better price. It’s a rare win-win in a major vendor negotiation, and it lets us push forward with 5G and new services confidently.”
— CTO, Telecom Company (Spain)
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