Reduce Oracle Support Costs
Executive Summary
- Oracle on-premises support fees (for Database, Middleware, E-Business Suite, etc.) often consume many IT budgets, with annual support fees at ~22% of license costs plus yearly uplifts. This article provides 15 proven contractual, operational, and alternative strategies to optimize or cut these support costs while staying compliant.
- Key takeaways: Negotiate contract terms to cap support fee increases and prevent “repricing” traps, eliminate shelfware (unused licenses) from support, consider third-party support (which can halve costs), re-platform or consolidate to shrink your Oracle footprint, and actively benchmark support value. These tactics can significantly reduce Oracle’s annual support spend (many enterprises see 30–50 %+ savings) without compromising essential coverage.
Negotiating Contractual Protections to Cap Support Fees
- Negotiate a Support Cap: Don’t accept the standard ~4–8% annual support fee uplift. Instead, insist on a support cap clause that limits yearly increases (e.g., 0% for 2 years, then max 3% after) – some customers have secured multi-year freezes or <3% caps on Oracle support. For example, a 3-year 0% increase on a $1M support bill saves ~$ 125 K+ versus a 4% yearly rise. These caps support fee growth and prevent compounded cost creep.
- Prevent Repricing of Remaining Licenses: Include contract language to block Oracle’s repricing if you drop licenses. Oracle’s default policy allows it to reprice support at current list prices when you terminate a subset of licenses, stripping your original discounts. By negotiating a “no repricing” clause or dropping entire orders at once, you prevent Oracle from raising per-license support costs on the licenses you keep. In one case, dropping 50% of licenses only cut support by ~30% (not 50%) due to a lost volume discount. A repricing protection clause locks your support fee for remaining licenses at the pre-reduction rate.
- Leverage Support “Holiday” Provisions: If phasing out an Oracle system, negotiate a temporary support fee waiver. For example, if an on-premises Oracle application is retired or replaced in 12–18 months, ask Oracle to suspend support charges during the overlap period. This “support holiday” avoids paying for support on a legacy system you’re exiting. Oracle has granted such waivers, especially when customers transition to new platforms (though often tied to Oracle’s cloud/services). Ensure any agreement is in writing, with timelines for when fees resume if needed.
- Bundle and Align Renewals: Align support renewals with new purchases or consolidate them into a single negotiation event. Oracle reps are more flexible at fiscal year-end and quarter-end when under pressure. Co-term all support contracts to expire together, creating a larger renewal that gives you leverage to demand concessions. By renewing as one big deal (databases, middleware, apps at once), you can often secure an overall discount or extra services rather than separate smaller renewals. Additionally, starting discussions early (6+ months before renewal) and escalating to Oracle management if needed, early, combined negotiations with a clear ask (e.g., “freeze support fees for 2 years”) can yield better results.
License Optimization: Shed Unused Licenses and Switch Metrics
- Terminate Support for Shelfware: Audit your Oracle licenses to find unused (“shelfware”) or modules. Many firms discover that 10–20% of their licenses are idle, yet they fully support them. Develop a process to identify and retire unused products or features. For example, if no one uses an optional Database pack (Partitioning, Advanced Compression, etc.), remove it from deployment and cancel its support. One company saved ~$100,000/year by turning off two unused DB options and cutting their support fees. Important: Due to Oracle’s Matching Service Levels clause, you typically must terminate all licenses of that product to cancel support. Plan to eliminate entire license sets (e.g., all licenses of a given module) to truly drop that support cost. This avoids paying for capabilities you don’t use.
- Right-Size License Metrics: Ensure you’re using the most cost-effective license metric. Oracle’s on-prem licenses come in various metrics (Processor, Named User Plus, Application User, Concurrent, etc.), and the wrong choice can inflate costs. For instance, if you have a small user count on a powerful server, Named User Plus licensing could cost less support than per-processor; conversely, for many users on modest hardware, processor licensing might be more efficient. Review your deployments to see if switching metrics or license types could reduce the license quantity and associated support fees. Example: A department with 50 infrequent users might switch from 50 Named User licenses to a 10 Concurrent User license (if available), lowering support due to fewer licenses. In certain cases, Oracle may allow metric conversions or license transfers; negotiate this during true-up or renewal. Any metric switch that reduces your licensed units will cut the support fee (watch out for Oracle attempting repricing; secure agreement that the change won’t trigger a support cost hike).
- Drop Unneeded Product Editions or Components: You might be paying for support for higher editions or extra components that aren’t needed. For example, if an Oracle Database Enterprise Edition feature set isn’t fully utilized, see if some environments can use Standard Edition (with lower license and support costs) – this requires careful migration planning, but support for SE is much cheaper. Similarly, ensure you’re not paying for Application suite modules or middleware products your team isn’t actively using. Optimize your license mix by discontinuing support on any redundant pieces. Always obtain confirmation from Oracle to formally remove a product from support (to avoid accidental compliance issues).
Consolidate Infrastructure and Replatform to Reduce Oracle Footprint
- Consolidate Servers and Instances: Oracle licensing (and support) costs scale with the number of processors/cores and installations. Consolidate Oracle workloads onto fewer, efficiently used servers or VMs to minimize total licensed cores. For example, if you can retire or combine several Oracle databases onto one platform, you may be able to surrender some licenses and drop their support. Be cautious: ensure consolidation uses Oracle-approved partitioning or virtualization (to avoid licensing all cores in a cluster). Successful consolidation or archiving of old data can shrink your Oracle footprint and yield direct support savings by reducing the number of licenses under maintenance. Tip: Document the decommissioning of each instance and notify Oracle to remove those licenses from support coverage.
- Replatform Off Oracle to Cut Fees: Evaluate if specific applications can be moved off Oracle technology to eliminate ongoing fees. Migrating Oracle databases or middleware to lower-cost platforms – e.g., an open-source database like PostgreSQL – can drastically reduce costs by ending the Oracle support on those licenses. Many organizations are migrating Oracle databases to PostgreSQL or cloud-native databases to escape Oracle’s 22% support fees and vendor lock-in. Similarly, consider replacing Oracle Middleware or E-Business Suite modules with alternatives if viable. Real-world scenario: A company that moved a chunk of its Oracle workloads to open-source databases could terminate those Oracle licenses, saving 100% of that segment’s support costs (though upfront migration effort is required). Replatforming is a strategic long-term play – it reduces Oracle’s footprint, so you pay for fewer Oracle licenses overall. Even a partial migration (e.g., offloading non-critical databases) can allow you to drop support on the migrated licenses, yielding substantial savings.
- Exploit Contract Flexibility During Transitions: If you plan a major replatform (for example, retiring an Oracle-based system next year), use that as leverage. Oracle may agree to short-term concessions like reduced support fees or credits if they know you’re migrating away (they might prefer reduced fees over losing you entirely). Alternatively, time your support termination to coincide with the cutover – don’t renew support for a product you’ll replace mid-year. You can avoid paying beyond the needed period by carefully scheduling end-of-life for Oracle systems. In one negotiation, a customer aligning an Oracle EBS phase-out managed to get support fees waived for the last 6 months of use, saving tens of thousands in fees that would have otherwise been wasted.
Leveraging Third-Party Support to Halve Maintenance Costs
- Switch to Third-Party Support Providers: One of the fastest ways to cut Oracle support costs is to move to an independent support provider (such as Rimini Street or Spinnaker Support) for your Oracle on-prem software. These firms provide software updates, patches (often their fixes), and helpdesk support for Oracle products at typically 50% of Oracle’s annual fee. For example, if you pay Oracle $1M/year in support, a third-party may charge about $500K for equivalent support, immediately saving you 50%. Over multiple years, this adds up to millions in savings, freeing the budget for other initiatives. Third-party support is entirely legal – you still must own valid Oracle licenses, but you are simply outsourcing support elsewhere.
- Ideal Candidates for Third-Party Support: Consider this option for stable, mature systems you do not plan to upgrade frequently. Examples include Oracle E-Business Suite, PeopleSoft, JD Edwards, or older Oracle Database versions that meet your needs. Third-party support will keep these systems running (including regulatory and tax updates for apps) without forcing expensive upgrades. They even support older versions beyond Oracle’s official “Premier Support” period, letting you avoid Oracle’s costly extended support uplifts. If your environment is mainly in maintenance mode (receiving only minor patches and fixes), third-party support can deliver what you need at a fraction of the cost.
- Trade-offs and Risks: Be aware of the trade-offs. When you leave Oracle’s support, you stop getting official patches or new version updates from Oracle. Third-party providers will supply fixes for known issues and regulatory changes, but they don’t have Oracle’s source code. Third parties often develop their patches or workarounds for security vulnerabilities. Also, Oracle will not assist with any issues while you’re off their support – you’ll rely entirely on the third-party (and your in-house team) for critical incidents. Compliance-wise, you remain obligated to follow your license terms, and Oracle can still audit you. Some customers worry Oracle might scrutinize them more after leaving support, so ensure you’re fully compliant before switching.
- Reinstatement Considerations: Treat moving to third-party support as a long-term decision. If you later decide to return to Oracle Support, Oracle will charge hefty reinstatement fees – typically back support for the lapsed period plus a 50% penalty. For instance, after 2 years of support, you’d pay two years of fees and a 50% surcharge to get Oracle support again. This often negates any short-term savings. Therefore, plan to stay with the third-party (or on self-support) for the foreseeable future. Many enterprises have successfully stayed on third-party support for 5+ years, enjoying cost savings and often more personalized service. Just go in with eyes open: you trade access to Oracle’s latest updates for significant budget relief.
Proactive Support Management and Value Benchmarking
- Consolidate and Co-Term Contracts: If your Oracle support contracts are fragmented (different end dates or separate agreements per product line), consolidate them into one renewal. A unified support contract that covers, say, your database and middleware licenses together, due at the same time, gives you a larger budget to negotiate with. Oracle is more likely to offer concessions on a significant renewal rather than risk losing pieces of business. Co-terming also simplifies administration and ensures nothing renews by autopilot at the list price. Use the combined value to negotiate multi-year terms or an enterprise-wide support deal with better conditions.
- Benchmark Support Usage vs. Cost: Measure the value you get from Oracle support. How often do you log service requests? Are critical issues resolved promptly? Many organizations find they use only a fraction of what they pay for – e.g., only a few tickets per year on a $500K support contract. By quantifying support usage, you can decide if full Oracle support is justified or if a scaled-back approach is viable. This data is powerful in negotiations: if Oracle’s support isn’t actively being used, share those facts when asking for price reductions or considering third-party options. Also, compare your effective support cost per ticket or Oracle engineer hour to industry benchmarks – it might be very high, underscoring the need to reduce fees.
- Escalate for Value and Service: As an enterprise customer, you can escalate within Oracle to get more value for your support dollars. If you experience poor support (long resolution times, etc.), raise it with your Oracle account manager and insist on a service improvement plan – you are paying premium “sustaining” fees and should get premium service. For large accounts, ask for a dedicated support manager or Technical Account Manager (TAM) at no extra charge as part of your support package. In contract talks, if the support fees seem high relative to value, escalate to Oracle executives with a business case for a discount or added services. Oracle would rather make some concessions than lose a customer entirely. Use your findings from benchmarking to drive these discussions.
- Regular Support Reviews and Audits: Internally, conduct annual (or semi-annual) reviews of all Oracle support contracts. Scrutinize each line item – is the business still using this product? Did we downsize that environment? This practice often uncovers candidates for termination or reduction. Additionally, ensure you’re not paying for higher support levels than needed (e.g., if you downgraded an environment to development use only, maybe you can drop those licenses from production support). Maintain an internal inventory with current usage status and last review date. By instituting a governance process, you’ll catch opportunities to save before the renewal bill arrives. Oracle defaults to auto-renew at full price, so proactive management is key to avoiding unnecessary support spend.
Recommendations
- Cap and Freeze Increases: Always negotiate a support cap. Aim for a 0% increase for a couple of years or a maximum 3% annual uplift on Oracle support fees. This prevents surprise hikes and locks in your support fee at a predictable rate.
- Eliminate Shelfware Costs: Terminate support for unused licenses and modules. Conduct a thorough license audit to find shelfware. Cancel support on any Oracle product that isn’t providing value (after ensuring it’s not in use). Dropping 10–20% of unused licenses can immediately trim the support bill—just be sure to remove whole license sets to avoid Oracle’s partial repricing.
- Use the “All or Nothing” Approach: Remove entire orders or product sets when reducing licenses. This way, Oracle cannot reprice the remaining licenses at a higher rate. Plan reductions strategically – it’s often better to cut 100% of one product’s licenses than 50% of two products because you’ll see the savings.
- Consider Third-Party Support: Switch to third-party support to cut costs by ~50% for stable systems. If you don’t need Oracle’s constant updates, providers like Rimini Street can maintain your software for half the cost. This support alternative is a proven strategy for older ERP and database environments to save millions over a few years.
- Consolidate Contracts: Merge and co-term Oracle support contracts. A single renewal for a larger spend gives you leverage to negotiate discounts. It also simplifies management and ensures you review everything immediately for potential cuts. Use a unified renewal to demand better terms (e.g., multi-year price holds, added support benefits).
- Replatform Where Feasible: Reduce Oracle’s footprint by migrating where it makes sense. For new applications or non-mission-critical systems, evaluate open-source databases or alternative software to avoid adding more Oracle licenses. If possible, migrate some existing workloads off Oracle – every database or app you decommission or replace is one less support line to pay. Even incremental moves can add up to significant savings over time.
- Optimize License Metrics: Right-size your licensing to actual usage. Ensure you use each deployment’s optimal metric (user vs processor, etc.). Sometimes, switching metrics or license types (with Oracle’s approval) can lower the count of licenses and thus support fees. Also, partitioning or smaller servers can be used to contain license needs. In short, don’t pay for the capacity you don’t truly need.
- Engage Early and Use Leverage: Start renewal talks before the deadline and use leverage points. Don’t wait for Oracle’s last-minute quote – begin discussions 6-12 months in advance. Align your requests with Oracle’s fiscal year timing for maximum attention. Let Oracle know (tactfully) that you are exploring options like third-party support or cloud alternatives – the threat of losing your support business often motivates Oracle to offer concessions (like a smaller uplift or extra credits).
- Document and Verify Changes: When you change – dropping a product or reducing licenses – document it and confirm with Oracle. Have Oracle issue an updated support schedule or amendment reflecting the change. This avoids disputes later and creates a paper trail that those licenses are no longer supported (protecting you from being billed or audited for them). Keeping records of what was removed and why (e.g., project retired) also helps defend your decisions.
- Continuously Review Support Value: Treat Oracle support like any vendor service – review it annually for ROI. If the cost keeps rising but your usage or business value doesn’t, be prepared to challenge it. Use metrics (cost per ticket, etc.) to have fact-based conversations. If Oracle support isn’t delivering, either negotiate improvements or plan an exit strategy. Regular oversight ensures you’re not passively overspending on maintenance out of habit.
FAQ (Oracle Support Cost Reduction)
Q1: How are Oracle on-premises support fees calculated?
A1: Oracle’s standard support fee for on-prem software is 22% of the net license price (per year). For example, if you bought $1 million in Oracle licenses (after discounts), annual Premier Support would be about $220,000. This gives you access to patches, upgrades, and technical support. The 22% rate is pretty much fixed by Oracle policy; however, the net license cost could be lower if you negotiated a discount on the licenses themselves (Oracle then calculates support as 22% of that discounted price). Remember that this fee typically increases yearly (unless capped) and can rise if you purchase more licenses. Extended Support (for older versions) costs even more (often an extra 10–20% on top of the base fee in later years), though Oracle sometimes waives or reduces those uplifts for specific products. Always budget for the complete 22% annually and any applicable uplift, so you’re not caught off guard.
Q2: Does Oracle increase support fees every year, and by how much?
A2: Yes, Oracle usually applies an annual uplift to support fees. By default, this increase has historically been around 3–4% per year for Premier Support. In some cases (especially high inflation periods or specific contracts), it could be up to 6–8%, but 3–4% is common. Oracle’s support contract or quote often states a maximum percentage or ties increases to an index – if it’s not specified, assume ~4%. The compounding effect means your support bill climbs yearly (e.g., a $1M fee becomes ~$1.125M after 3 years of 4% hikes). However, you can negotiate this: many enterprise customers secure a support fee cap so that Oracle cannot raise the fee beyond a set rate. For instance, you might negotiate a 0% increase for two years or cap increases at 2–3% annually. Oracle reps have flexibility here during big deals or renewals. The key is to address it in the contract; otherwise, expect support fees to creep up yearly as part of Oracle’s standard practice.
Q3: What is Oracle’s “repricing” policy for support, and how can we avoid it?
A3: Oracle’s repricing policy is a contractual rule that protects Oracle’s revenue if you drop some licenses. In simple terms, if you try to cancel support on a subset of licenses, Oracle can recalculate the support price for the remaining licenses at current list prices, removing any previous volume discounts. This means your support cost doesn’t drop proportionally to the licenses removed. For example, if you had 100 licenses and dropped 20, Oracle may raise the per-license support on the remaining 80 so that you save little or nothing. In some cases, customers found that a 50% reduction in licenses yielded only ~0%–30% reduction in support fees – Oracle repriced the rest to keep the fees nearly the same. To avoid repricing, the best strategy is “all or nothing.” Only terminate support on whole contract line items or products (so no partial drops within the same order/CSI). Also, check if your current support costs are already at or near the list price (e.g., after years of uplifts) – if so, Oracle cannot reprice above your current fee. Finally, explicitly negotiating a no-repricing clause when you sign agreements is ideal. Always calculate potential savings after repricing to see if dropping licenses is worth it; sometimes, it’s better to leave one product completely than trim a bit off many products.
Q4: Can we terminate support for some licenses while keeping others?
A4: Oracle generally enforces an “all-or-none” policy per product family (the Matching Service Levels clause). This means you cannot pick and choose a few product licenses to support and let others lapse – Oracle requires that all licenses of a given product under a license set have the same support status. Practically, you either support all your Oracle Database licenses (of a given edition) or drop support on the entire set; you can’t support 50 out of 100 DB licenses and run the other 50 unsupported. The only way to partially reduce this is if those licenses are on separate orders or represent different products. For instance, you could drop support on an entire module like Oracle Partitioning Option if it’s not used, while keeping support on the Database itself, because those are separate products. But you couldn’t take a single Oracle database and decide to support only half the CPUs licensed. In short, Oracle’s standard rules prohibit partial termination of the same product. To reduce support, you must entirely terminate distinct license sets. If you have licenses you don’t need, consider terminating that whole line item at renewal (and stop using those licenses). If you stop paying for a subset without Oracle’s agreement, you will violate the contract, so plan any reductions carefully and with Oracle’s acknowledgment.
Q5: What is a support fee cap clause, and should we negotiate one?
A5: A support cap clause is a negotiated contract term that limits the annual increase on Oracle support fees. It’s highly recommended to negotiate one. Oracle’s default position is that they can raise support prices yearly (often ~4%), but a cap locks that down – for example, “Support fees shall not increase by more than 3% per year for the next 5 years.” Some savvy customers even obtain a 0% increase for a specific period (no uplift for the first 2–3 years of a deal). This clause protects you from unexpected significant hikes (Oracle has been known to raise support 8–10% in some cases if not constrained). To get a cap, you usually need to bring it up during negotiations for a new license purchase or a significant renewal. Emphasize that long-term cost predictability is essential to your business. Oracle may agree to it, especially if you commit to a multi-year or significant purchase. In summary, a support cap is a key tool to control cost inflation – it essentially flattens or limits the support fee trajectory that would otherwise compound annually. Always ask for it; the worst Oracle can say is no, but often, they will agree to some limit to secure the renewal or sale.
Q6: What is third-party support for Oracle software, and how much can it save us?
A6: Third-party support means getting your Oracle software support from an independent company instead of Oracle itself. Firms like Rimini Street, Spinnaker Support, and Support Revolution specialize in providing updates, bug fixes, and technical assistance for Oracle products (Database, EBS, PeopleSoft, etc.) once you leave Oracle’s official support. The big appeal is cost: third-party providers typically charge about 50% of Oracle’s support fee for the same product coverage. So, if you’re paying Oracle $500,000 a year, a third party might charge ~$250,000 for support, instantly cutting maintenance costs in half. They also usually commit to supporting your specific version indefinitely (no forced upgrades) and may even include support for customizations. Many companies switch to third-party support for mature systems that don’t need new features – the savings can be dramatic (often millions over a few years). It makes sense to use third-party support when you are comfortable staying on your current software release and need “keep-the-lights-on” support. The service covers break/fix troubleshooting, legislative updates for ERP, and performance tuning. What you give up are Oracle-supplied product upgrades and patches. In return, you get significant cost savings and often more responsive, personalized service. In short, third-party support is a viable alternative to paying Oracle’s 22% annual fee, especially for older on-prem systems.
Q7: Is it legal and safe to use third-party support? Will we violate our Oracle license?
A7: It is legal to use third-party support as long as you remain properly licensed for the Oracle software. You can use the software forever when you buy Oracle licenses (perpetual); purchasing support is optional after the first year. Oracle’s contracts do not prohibit you from self-supporting or hiring another company to support your systems. There have been high-profile lawsuits (Oracle vs. Rimini Street), but those were about the provider’s methods, not customers’ use of third-party support. As a customer, you won’t be sued just for switching support providers. However, you should stop downloading Oracle’s support materials/patches once Oracle support is off. Only use what your third-party provider gives to stay on the right side of Oracle’s IP rules. In terms of safety, third-party support firms are established (many are NASDAQ-listed or long-running businesses) and have thousands of Oracle customers, including large enterprises, so the model is proven. Ensure you pick a reputable provider that understands Oracle licensing and can help you stay compliant. Also, expect Oracle to enforce license compliance strictly since you’re no longer their support customer; being off support doesn’t violate your license, but Oracle may audit to ensure you’re not using more licenses or features than you purchased. If you comply, there’s no penalty for using third-party support. In summary, it’s both legal and common, but keep good documentation, and don’t use Oracle’s support resources once you leave.
Q8: What are the risks or downsides of leaving Oracle’s support (for third-party or self-support)?
A8: The biggest risk is the loss of new Oracle patches, fixes, and upgrades. For example, if a severe security vulnerability is discovered in your Oracle Database, Oracle will issue a patch only to customers on active support. Off support, you rely on your third-party provider to create a fix or mitigate the issue, or your own team’s expertise. Another downside is that there is no direct access to Oracle support engineers or MOS (My Oracle Support). If something breaks, you cannot log a ticket with Oracle – you must depend on in-house staff or the third-party support team. There’s also the reinstatement cost if you ever need Oracle support again: Oracle will charge backdated fees plus a 50% penalty, which is very expensive. Additionally, while not guaranteed, some companies fear Oracle might scrutinize them more via audits once they stop paying support. So you’ll want to be extra careful with license compliance (though you should anyway). Custom code support is a plus on third-party (they often help with customizations). Still, new features are a no-go – you won’t get access to new product releases or enhancements from Oracle. If your business later decides it needs a new Oracle version, you’d have to pay to re-enroll in support (or buy new licenses). In short, leaving Oracle support can yield huge savings, and many customers are happy with third-party service. Still, you assume responsibility for updates and must be comfortable running without Oracle’s direct hand-holding. It’s best suited for stable environments where functionality is frozen and cost reduction is prioritized
Q9: If we cancel Oracle support now, can we resume it later?
A9: You can, but it’s costly and tricky. Oracle allows lapsed customers to reinstate support but imposes a reinstatement fee. This usually means paying all the back support fees for the period you were out, plus a 50% penalty. For example, suppose you drop support for 3 years to save money. If, after 3 years, you want back in (maybe to upgrade to a new version), Oracle would typically ask for 3 years of fees (that you avoided) plus 1.5 years extra (50% penalty) – effectively 4.5 years of support payments due at once. This policy discourages customers from “turning on and off” support at will. In many cases, paying that lump sum negates the savings you achieved by leaving, so it’s usually not economical to leave support for just a short hiatus. The longer you stay off support, the worse the catch-up bill gets (since it accumulates). Oracle sometimes gives a bit of leeway if you drop a product entirely and want to purchase new licenses instead, but generally, getting back on Oracle support is expensive. Therefore, if you leave Oracle support (or go with a third-party), plan that it’s a long-term or permanent move. Some companies adopt a strategy never to go back – they’ll eventually migrate off Oracle products before paying Oracle support again. If you think you might need Oracle’s official support shortly
Q10: How can we best negotiate our Oracle support renewal to reduce costs?
A10: Preparation and timing are everything. First, do your homework: know what you have (licenses, usage, shelfware) and what you need going forward. Engage Oracle early – start the conversation a few months before the renewal. Oracle’s sales teams have more flexibility earlier in the quarter, especially as they approach Q4 (their fiscal year ends May 31). Use that to your advantage: schedule discussions in Q4 or Q3 when they’re eager to close deals. When negotiating, clarify your objectives – e.g., “We need to reduce our support spend by 15%” or “We need a freeze on increases for two years.” Back it up with reasons: maybe your usage has dropped, your budgets are tight, or competitors offer better deals. Bundle negotiations if possible – if you’re also buying something new from Oracle, use it as a bargaining chip (“We’ll purchase X if you reduce the support on Y”). Or if you have multiple renewals in different months, ask for a co-term and apply a discount on the larger total. Another tip: mention alternatives – without making threats, let Oracle know you are exploring third-party support or migrating some systems. This signals that you have options, increasing your leverage. Also, don’t hesitate to escalate to higher-ups at Oracle if your sales rep isn’t budging – sometimes, a regional manager can approve concessions that a field rep cannot. Finally, get any agreement in writing (via an amendment or quote) well before the renewal date. Showing Oracle that you’re knowledgeable and willing to walk away (if necessary) increases your chances of negotiating a better support deal.
