Oracle Universal Cloud Credits – Flexibility and Discounts

Oracle Universal Cloud Credits:

• Flexible Access: Use for various Oracle Cloud services (OCI, PaaS).
• Purchasing Models: Annual commitment (discounted rate) or Pay-as-you-go (monthly payments).
• BYOL Option: Utilize existing Oracle licenses on Oracle Cloud.
• Benefits: Cost-effective, adaptable for fluctuating needs.
• Exclusions: Not applicable to Oracle ERP Cloud or other SaaS services.

Oracle Universal Cloud Credits

Oracle Universal Cloud Credits (UCCs) offer enterprises a flexible way to purchase Oracle Cloud services using a single, prepaid pool of funds.

By committing to a set spend, organizations can access any Oracle Cloud Infrastructure (OCI) service across regions, potentially receiving discounts; however, they must carefully manage usage to avoid overspending their budget.

This advisory explains how UCC contracts work, compares pay-as-you-go versus annual commitment models, and offers procurement and finance leaders practical guidance on negotiating favorable terms and maximizing cloud value.

Understanding Oracle Universal Cloud Credits (UCC)

Oracle’s Universal Cloud Credits program is a flexible cloud consumption model for OCI (covering Infrastructure and Platform services).

Instead of buying individual cloud services or fixed capacities, you purchase a pool of credits (a dollar-value balance) that can be spent on any eligible OCI service (compute, storage, databases, etc.) in any region.

Key characteristics of UCC include:

• Unified Credit Pool: A single prepaid budget covers any OCI IaaS/PaaS service. This means you’re not locked into specific services – you can allocate credits wherever needed as your projects evolve.
• Two Purchase Models: Oracle offers Pay-As-You-Go (no upfront commitment) and Annual Commitment (also known as Annual Flex) options for acquiring credits. We’ll detail these models next.
• Usage Drawdown: As you consume cloud resources, their costs (per Oracle’s rate card) are deducted from your credit balance. The spend is metered hourly or monthly against your credits.
• Term and Expiry: UCC contracts run for a fixed term (minimum 12 months). Unused credits expire at the end of the term – any prepaid amount not consumed is forfeited, so planning is crucial. New OCI services released during your term are typically covered so that you can use new offerings with your existing credits.
• Not for SaaS or On-Prem: UCC applies to Oracle Cloud Infrastructure and Platform services only, not Oracle’s SaaS application subscriptions or on-premise licenses/hardware.

In short, UCC provides a predictable budget for cloud spend and great flexibility to shift usage across services. Next, we examine the two purchasing models – on-demand pay-as-you-go versus committing upfront – and how each impacts cost and risk.

Pay-As-You-Go Model (On-Demand Usage)

The Pay-As-You-Go (PAYG) model allows you to utilize Oracle Cloud services without an upfront commitment, paying only for what you consume, billed in arrears (typically monthly).

Key features of the PAYG approach include:

• No Upfront Cost: You don’t pre-purchase credits. This model is essentially “on-demand” cloud usage – you can start or stop services at any time without a long-term commitment.
• Flexible Scaling: It’s ideal for variable or unpredictable workloads and initial cloud experiments. If a project is short-term or you’re unsure of demand, PAYG ensures you only pay for actual usage.
• Monthly Billing: Oracle invoices based on actual consumption each month (e.g., if you run 100 OCPU hours in July and 500 in August, your bills reflect those amounts). This can lead to cost variability from month to month.
• Higher Unit Costs: Unit pricing is at list rates under PAYG. There are no built-in discounts for volume. Over time, if usage grows steady and significant, PAYG can become more expensive compared to a committed model.
• No Waste Risk: The upside is you never “lose” spend – if you use nothing, you pay nothing. There’s no risk of sunk costs from unused credits, making PAYG a low-risk financial option for new adopters.

In summary, PAYG offers maximum flexibility and zero commitment, but at the full list price for OCI services.

Many organizations start on PAYG to “test the waters” or accommodate spiky demand. However, once usage becomes predictable and substantial, Oracle will encourage (and your finance team will likely prefer) moving to a committed model to lower the unit costs.

Annual Commitment Model (Oracle Annual Flex)

The Annual Universal Credits model (often called Annual Flex or Committed Use) involves prepaying for a year (or multi-year term) of cloud credits.

In exchange for this upfront commitment, Oracle provides significant discounts on the cloud services you consume.

Key aspects of the annual commitment model:

• Upfront Commitment: You agree to purchase a set amount of credits for a 12-month term (or a longer term, divided into annual allotments). For example, a company might commit to spending $1,000,000 in OCI credits per year for the next 3 years.
• Discounted Rates: Committed spend buys cloud services at a discounted price (often in the range of 10–30% off the pay-as-you-go rates, depending on volume). Oracle establishes a discounted rate card in your contract. Essentially, your prepaid dollars go further – you get more cloud capacity for the same money, compared to PAYG.
• Any Service, Any Time: Just like PAYG, those credits can be used on any eligible OCI service, in any region, whenever needed during the term. You are not fixed to specific services – one month you might use mostly database, another month more storage, etc., as long as the total spend eventually draws down your credit pool.
• Billing and Overage: Typically, you pay the committed amount upfront (or annually in advance). Your usage burns down the prepaid credits. If you happen to exceed your committed credits before the year is over, Oracle will simply bill the overage at your contracted, discounted rate (as per the rate card) in monthly arrears. You can also choose to purchase additional credits mid-term at the same discount rate to replenish your pool. Unlike some cloud vendors, Oracle does not automatically penalize users for overage with higher prices – provided it’s specified in the contract, you continue at the negotiated rate for excess usage.
• “Use it or lose it”: Unused credits don’t roll over. If by the end of the year (or contract term) you haven’t consumed the full value of the prepaid amount, those unused credits expire worthless. This is the biggest risk of the annual model – you are paying for capacity whether you use it or not. Every dollar underutilized is essentially a donation to Oracle’s bottom line.

Example: Company A commits $500,000 for one year of UCC. Oracle offers a 15% discount off list prices. This means $500k in spend gives them the equivalent of about $588k worth of cloud services at list value. If they consume the full allotment, they realize the full 15% savings (getting $588k of usage for $500k paid).

But suppose by year-end they only used $400,000 worth of services – the remaining $100k is forfeited.

In effect, they paid $500k for $400k of actual value, meaning their effective cost per unit was much higher than planned (they lost 20% of their investment and would have been better off on PAYG in this scenario). This underscores the importance of accurate forecasting and cautious commitment.

When Annual Commit Makes Sense: Organizations with steady, predictable cloud workloads or large-scale deployments usually benefit from this model. The cost per unit can be dramatically lower than PAYG if you truly utilize what you pay for.

It’s common for enterprises to start with a modest commitment (after some initial PAYG usage proves out the demand) and then increase the commitment as they gain confidence in usage levels.

To visualize the differences between the two models, the table below summarizes key points:

As shown, Annual Flex trades flexibility for cost savings: it provides budget certainty and lower prices, at the risk of overpaying if you can’t use all the credits.

PAYG offers freedom and no waste, but with potentially higher costs if used at scale. Many enterprises use a mix: starting with PAYG for new projects and switching to an annual commitment once usage stabilizes.

Pricing and Discount Considerations

One of the primary motivations for using UCC is the potential for cost savings. Understanding how Oracle’s pricing and discounts work in these contracts is critical for finance and procurement teams.

• Oracle Rate Card: Oracle Cloud has a published price list for all OCI services (per hour, per GB, etc.). When you negotiate a UCC deal, Oracle will apply a discount percentage to those list prices for your committed term. For example, the list price for a compute instance might be $0.10/hour – with a 20% UCC discount, you pay $0.08/hour from your credits.
• Volume Discounts: Oracle’s UCC discounts generally scale with the volume of your commit. Larger annual commitments yield better discount tiers. For instance, a $500K/year commitment might yield roughly a 10-15% discount, while a $5M/year commitment could secure a significantly higher discount (20%+). Oracle has internal discount brackets (which they don’t always volunteer), so it’s wise to ask about “breakpoints” – e.g., “What discount do we get at $1M vs $2M commit?” Ensure you’re aware of these tiers so you can size your commitment strategically.
• Overage Pricing: Pay special attention to how overage usage is priced in the contract. Ideally, any usage beyond your prepaid credits is charged at the same discounted rate. In many Oracle contracts, if you run out of credits, additional usage is simply billed at your negotiated rates (not at the full list). However, it is advisable to confirm this in writing. If not negotiated, there’s a possibility Oracle could charge list price for overage. Always request that the Overage Unit Price = Discounted Unit Price, so you’re not penalized for using more cloud than planned.
• Pricing Transparency: Oracle’s list prices are public; however, ensure your contract itemizes the pricing, including the list rate, your discounted rate, and the discount percentage for each service category. This transparency helps you verify you’re getting the agreed deal on all services. It also locks in your discount structure even if Oracle changes its public price list later.
• Cloud vs On-Prem Incentives: Remember that Oracle has programs to encourage cloud adoption. The Oracle Support Rewards program, for example, gives customers with Oracle on-prem support contracts a rebate for OCI usage (currently $0.25 off your support fees for every $1 spent on OCI, or $0.33 if you have an Unlimited License Agreement). This essentially reduces your overall Oracle spend by applying cloud spend as a credit against on-prem support bills – a significant financial perk if you’re paying hefty support fees. Ensure you’re enrolled in this program if eligible, as it can substantially boost the ROI of moving workloads to OCI (effectively, cloud spend yields extra savings beyond the cloud discount itself).
• BYOL vs. Included Licensing: Oracle Cloud services often have two pricing options – “License Included” (you pay for the Oracle software license as part of the cloud service price) or “Bring Your Own License (BYOL)” where you use your existing Oracle software licenses on OCI for a lower service rate. If your company already owns Oracle licenses (with active support), always evaluate BYOL pricing. BYOL rates can be 30-60% cheaper than license-included rates for the same service. This means your UCC credits will stretch much further. For example, an Autonomous Database might cost $2 OCPU/hour with license included, but only $0.8 OCPU/hour with BYOL. By using BYOL, you consume fewer credits for the same usage. You continue to pay for on-premises support for those licenses, but that’s where Support Rewards kicks in to offset those costs. Bottom line: leveraging existing licenses via BYOL can drastically lower your cloud unit costs and is a key cost-optimization lever under UCC.

In summary, from a pricing perspective, negotiate the deepest discount possible for your commitment level and exploit Oracle’s programs (volume discounts, support rewards, BYOL) to maximize value. Ensure all terms (rates and discounts for all services, overage terms) are documented in the contract to avoid surprises later.

Negotiation Best Practices for UCC Contracts

Negotiating an Oracle UCC agreement requires due diligence and some savvy at the table.

Here are important strategies for procurement managers to consider:

• Right-Size Your Commitment: Oracle sales will push for a larger commitment, but you must base it on realistic consumption forecasts. Analyze past usage (if any) and future cloud plans in detail. It’s often safer to start with a conservative commit that you’re confident you can use 100%, rather than over-commit just to get a slightly higher discount. Remember, a 30% discount is useless if you leave half the credits unused. You can always scale up commitment later as usage grows.
• Leverage Competition: If possible, get pricing from AWS, Azure, or Google for equivalent workloads. Oracle has been known to be more flexible with discounts if they know they’re competing to win your cloud business. Use that competitive pressure to your advantage in negotiations – for example, “AWS is offering us on-demand rates that would cost $X for this workload; we’ll need a better discount or incentives from Oracle to justify a commit.” Oracle has lowered OCI prices in recent years to remain competitive – ensure your deal reflects this.
• Request Volume Tier Details: As mentioned, Oracle has predefined discount tiers based on spend levels (although these may not be displayed upfront). Directly ask Oracle to provide the volume discount schedule that applies to UCC. For example: “If we commit $300k vs $500k vs $1M, what discount percentage corresponds to each?” Having this info prevents Oracle from short-changing your discount and allows you to decide if a bigger commitment is worth it. Ensure the final agreement clearly states the discount % or net unit prices for each service.
• Negotiate Overage Rates and Terms: Do not overlook the overage clause. Negotiate that any additional usage beyond the commit will continue at the same discounted rate (or at least no worse than the commit rates). Also, clarify that you can true-up or add credits mid-term at the same discount if needed, rather than being locked out. This gives you flexibility if your cloud adoption suddenly accelerates.
• Contract Flexibility: Try to include terms that give you some flexibility, such as the ability to reallocate unused credits to other Oracle offerings or a carryover provision (even if partial) into the next term. Oracle may resist, but large customers sometimes negotiate exceptions – for example, a clause allowing 5-10% of unused credits to roll over to a renewal if they renew early. Even if you can’t get a carryover, negotiating a shorter term (such as a 1-year commitment instead of a 3-year one) might reduce risk, or include a ramp-up schedule (e.g., committing a smaller amount in Year 1 and a larger amount in Year 2) if your cloud usage is expected to gradually increase.
• Ensure Transparency: Insist on full pricing transparency in the order document. Every service SKU you use should display both the list price and your discounted price. This not only helps you verify charges, but also ensures Oracle can’t quietly change pricing. It also allows you to conduct an apples-to-apples benchmark against other providers or deals. If Oracle’s price list is available online, take a snapshot for your records and ensure the contract specifies that pricing is fixed (except for Oracle’s public price reductions, which should be passed through to you).
• Consider Partner Options: In some cases, buying Oracle credits through a third-party reseller or integrator can yield better discounts or incentives (partners might have bulk discount programs). However, be cautious: adding a middleman can complicate support and may limit your ability to negotiate directly with Oracle. Evaluate if an Oracle Cloud Marketplace partner deal or a volume licensing reseller can offer an advantage, but weigh it against a direct enterprise agreement with Oracle.

The key in negotiations is to align the deal with your organization’s actual needs and usage patterns. Don’t be lured by a big discount into committing beyond your comfort level. It’s better to negotiate a renewal or expansion a year later than to overspend upfront.

Maximizing Value and Avoiding Pitfalls

Even after the contract is signed, active management is necessary to maximize the value of UCC and avoid common pitfalls.

Here are practices to ensure you capitalize on your investment and minimize waste:

Oracle Cloud’s Cost Analysis and budget tools can help track credit usage against your plan. Regularly reviewing these reports enables teams to spot under-utilization early and take corrective action (such as scaling up usage or adjusting workloads) to avoid wasting prepaid credits.

• Continuous Usage Monitoring: Treat your cloud credits like a budget that needs tracking. Use Oracle’s cost management tools (Cost Analysis dashboards, budgets, and alerts in the OCI console) to monitor consumption monthly or even weekly. Compare your actual burn rate to the ideal burn rate to fully utilize your credits by year-end. If you’re behind pace halfway through the term, it’s a red flag – you may need to increase usage (for example, accelerate migrating some workloads to OCI) to use what you’ve paid for.
• Optimize Resource Usage: Work with engineering teams to identify any idle or underutilized resources in OCI (e.g., VMs left running, over-provisioned storage, etc.). Oracle Cloud Advisor can suggest ways to save money (like downsizing an instance if it’s oversized). Eliminating wasteful cloud spending ensures your credits are put to productive use. This is basic cloud cost governance – the more efficient you are, the more value you extract from your prepaid credits.
• Maximize Support Rewards: If you are eligible for Oracle Support Rewards (i.e., you have on-premise database or middleware support contracts), be sure to register and actively use those rewards. Track the rewards you’re accruing as you spend OCI credits, and apply them toward your support invoices promptly (they typically expire after 12 months). This effectively increases the ROI of every cloud dollar spent. For example, a $1M OCI annual spend could generate $250k in support credits – that’s real money saved on your IT operational expenses.
• Use BYOL Where Possible: As noted earlier, bringing your existing Oracle licenses to OCI can drastically reduce how fast your credits are consumed (due to lower rates). Ensure your cloud architects are aware of BYOL options for databases, WebLogic, analytics, etc. Implement governance so that whenever a license is available, any corresponding OCI service is run in BYOL mode. This will stretch your credits and prevent you from paying twice for licenses.
• Avoid Scope Creep Beyond Credits: It’s easy for cloud usage to grow beyond expectations. While paying for overage at discounted rates is better than shutting down services, unplanned overage spending can strain your budget. Set up internal budgets/alerts for each project or department consuming OCI, so you have visibility into who might overspend. If certain teams are consuming far more than anticipated, you can decide to rein in usage or prepare to negotiate an increase in the commit next cycle. The goal is no surprises – you want to either use exactly what you paid for, or consciously exceed it with a plan (and maybe an early renegotiation for more credits if needed).
• Stay Informed on OCI Services: New services or updates in OCI might offer cost efficiencies or capabilities that benefit your company. Since UCC allows the use of any service, you should monitor Oracle Cloud releases closely. For example, if a new, more cost-effective compute instance shape or storage class becomes available, switching to it could reduce your burn rate and let you get more out of your credits. Additionally, Oracle occasionally adjusts pricing (they have previously reduced certain OCI prices) – ensure these reductions are reflected in your usage costs. Essentially, treat Oracle as a partner: engage with their customer success or account reps to regularly review your usage and see if you’re utilizing the best options available.
• Plan for Renewal Early: As you approach the end of your UCC term, evaluate how closely your consumption aligns with your commitment. If you have overused and paid overage, you might be able to negotiate a higher commitment (and possibly a better discount) during the renewal. If you underused, you have hard data to justify a smaller commit or to press Oracle for credits carryover or make-good concessions. Start those conversations a few months before renewal. Oracle will be eager to lock you in again, so use that timing to potentially negotiate unused credit forgiveness, service credits, or a more flexible contract in the next round.

By diligently managing your cloud credit consumption and taking advantage of Oracle’s cost-saving programs, you can maximize every dollar of your Universal Cloud Credits.

The biggest pitfalls – overcommitting, underutilizing, and failing to monitor – can be avoided with proactive oversight and collaboration between the technical teams and financial stakeholders.

Recommendations

• Forecast and Commit Wisely: Thoroughly assess your cloud workload needs before committing to any resources. Start smaller if unsure, and avoid the temptation to over-commit for a higher discount. It’s better to slightly underestimate and use all credits than to overspend and leave money unused.
• Choose the Right Model for Each Use Case: Utilize Pay-As-You-Go for new or variable projects to maintain flexibility. Transition to an Annual Commit once usage is steady and predictable to benefit from discounts. Don’t lock in a long commit on a hunch – use real usage data to drive that decision.
• Negotiate for Best Terms: Leverage Oracle’s eagerness to grow OCI usage. Push for volume discount tiers (know what discount you earn at each spend level) and insist on pricing transparency in the contract. Ensure overage rates are the same as discounted rates. If Oracle is seeking a multi-year deal, consider requesting yearly flexibility or the right to adjust the commitment if usage patterns change significantly.
• Monitor and Optimize Usage: Treat your UCC like a budget to manage. Implement cloud cost governance by setting up OCI budget alerts, reviewing consumption on a monthly basis, and optimizing resources. The goal is to use 100% of your credits on real, needed workloads. If you’re experiencing underutilization, communicate with teams early to increase adoption or with Oracle to explore potential remedies.
• Exploit Cost Offset Programs: Enroll in and utilize Oracle Support Rewards, if applicable, to reduce your support costs. Always consider BYOL pricing for Oracle software on OCI to lower service rates. These programs can significantly reduce the total cost of ownership of Oracle Cloud, essentially providing you with additional savings beyond the UCC discount itself.
• Collaborate Across Departments: Ensure IT, finance, and procurement are in sync on cloud usage and UCC management. IT should provide usage forecasts and updates; finance should track budget versus actual; procurement should be prepared to renegotiate based on the data. This collaboration will help avoid surprises and strengthen your position in future negotiations with Oracle.
• Stay Agile with Oracle Cloud: Continuously evaluate new OCI services or pricing changes. Oracle’s cloud offerings evolve, and so can your usage mix. Be prepared to pivot – for example, adopt a new cost-efficient service or adjust your architecture – to maximize the value of your credits. Also, maintain a dialogue with Oracle: sometimes they can offer free training, architectural guidance, or trial credits to ensure you succeed and fulfill your commitment (it’s in their interest, too). Requesting such support can enhance the value you derive from the relationship.

Checklist – 5 Key Steps for Managing Oracle UCC

1. Usage Planning: Develop a detailed cloud usage forecast (by service and project) before signing a UCC deal. Identify which workloads will run on OCI, for how long, and estimate their monthly costs to determine a safe commit level.
2. Contract Review: Before finalizing the contract, confirm all critical terms, including discount percentages for each service category, overage pricing equal to the discounted rates, contract term lengths, and any negotiated flexibilities (such as the ability to add credits or potential carryover). Make sure these are documented in the order form.
3. Cost Tracking Setup: Immediately after starting the UCC period, set up OCI Cost Analysis reports, budget thresholds, and alerts aligned to your committed amount. For example, if you committed $1M/year, set a quarterly burn target (~$250k) and get alerts if you’re off track. This provides early warning if consumption is too low or too high.
4. Governance and Optimization: Implement a governance process to regularly review cloud spend. Assign owners for cost optimization who will identify idle resources, enforce the use of BYOL rates where applicable, and ensure projects scale usage appropriately. Hold monthly or quarterly meetings to review OCI consumption vs plan.
5. Pre-Renewal Action: 90 days before contract expiry, evaluate your credit utilization. Prepare a strategy for renewal: if utilization was high, gather data to negotiate better discounts for a larger commitment (or argue for more value-added services from Oracle). If utilization is low, decide whether to reduce the commitment or request remedies from Oracle. Engage with Oracle early using this data – for example, request a credit true-up or extension if you’re below your usage, or lock in a better rate if you plan to increase your OCI usage. Having a plan before the renewal crunch time will lead to a more favorable outcome.

FAQ

Q1: Are Oracle Universal Cloud Credits the same as a typical cloud “enterprise agreement”?
A: Yes, in concept, UCC is Oracle’s version of a committed cloud spend agreement. Instead of paying as you go, you pre-pay for cloud usage. The key difference is that Oracle’s credits are truly universal across their IaaS/PaaS portfolio, whereas some other vendors’ contracts might commit you to specific services or reserved instances. UCC provides you with a single, flexible bucket of funds to use on any OCI service, offering considerable flexibility. However, like any enterprise agreement, you must meet the spend commitment or you forfeit the unused portion.

Q2: What if we don’t consume all our Universal Cloud Credits by the end of the term?
A: Any unused credits at the end of your contract term expire worthless – you lose that money. Oracle will not refund it. This is why aligning your commit with actual usage is critical. If you’re approaching the end of the term and see a significant amount of credits left, you might scramble to use them (perhaps deploy extra workloads or run heavy computations) so they aren’t wasted. In some cases, customers attempt to negotiate an extension or carryover of unused credits into a renewal; however, this is at Oracle’s discretion and typically requires committing to a new contract. The best practice is to avoid this situation by closely monitoring consumption throughout the year.

Q3: Can we adjust our committed amount or purchase additional credits during the contract?
A: You generally cannot reduce your committed spend during the term – that’s locked in. However, you can purchase additional credits on top of your commitment if you find that your usage exceeds expectations. Those additional purchases would typically inherit the same discount terms as your original commitment (especially if spelled out in the contract). Oracle often allows you to simply continue using services beyond your paid credits and will bill the overage at the agreed-upon rate. If your cloud adoption is growing rapidly, it’s wise to discuss with your Oracle representative a mid-term “top-up” of credits or an increase in commitment (they’ll be happy to sell more, possibly even at a discount). Just be cautious: additional purchases usually also have a use-by expiry (often co-terminus with your contract). In short, you can increase spend (and Oracle will eagerly accommodate that), but you can’t drop below the original commitment until renewal time.

Q4: Are Oracle SaaS cloud services (Fusion apps, etc.) covered under Universal Cloud Credits?
A: No. Oracle’s SaaS application subscriptions (like Fusion ERP, HCM Cloud, NetSuite, etc.) are not part of UCC. UCC strictly covers OCI Infrastructure and Platform services. Think of it as anything you find on the OCI console (compute, storage, databases, cloud middleware, analytics platform, integration cloud, etc.) can be paid via UCC. SaaS apps are typically licensed through their subscription contracts. This means you can’t use leftover cloud credits to pay for SaaS, and vice versa. It’s important to distinguish this, as some Oracle reps might pitch UCC alongside app deals, but financially, they’re separate buckets.

Q5: How much discount can we get with an Oracle UCC commitment?
A: The discount varies based on your annual spend and Oracle’s pricing policies, but enterprise customers can expect meaningful savings. For a modest commitment (hundreds of thousands of dollars per year), single-digit to low-teens percentage discounts off the list price are common. For very large commitments (multi-million per year), discounts in the 20–30% range (or even more in competitive situations) have been seen. Oracle also sometimes has promotional incentives – for example, an extra discount if you commit by a quarter-end, or if you’re a new OCI customer migrating from AWS. The exact number will be negotiated: you should ask Oracle for their tiered discount table to know what’s possible. Also, remember, Oracle’s list prices for many services are already lower than competitors’, so a “15% discount” might yield a price that is very aggressive in the market. Focus on the bottom-line unit cost you’ll pay for your key services, and benchmark those against alternatives. A great discount on paper means little if the starting price was high; conversely, even a smaller discount can be a great deal if Oracle’s base prices are low. In any case, drive the discount as hard as you can, but ensure you can truly utilize the commitment attached to it.

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