For Sourcing & Vendor Management Professionals (Length: 17 pages)

February 29, 2008

Best Practices: Negotiating With Oracle

How To Get A Good Deal On Licenses And Maintenance, Be They For Database, Middleware, Or Application Software

by Duncan Jones

with Andrew Parker, Varun Sedov


Executive Summary (This is a document excerpt)

Oracle's pricing is necessarily complex because of its wide portfolio. Regulatory restrictions, coupled with its size, have caused it to adopt highly centralized approval processes that can make contract negotiations protracted and frustrating. Yet IT sourcing professionals can, with persistence and patience, obtain a better balanced deal with Oracle if they prepare sound negotiating strategies that focus maximum leverage on a few key issues. The adoption of Oracle's database and/or middleware as the enterprise's strategic platform and the first purchase of an Oracle-owned application are the best opportunities to secure the desired financial terms and favorable, enduring contract conditions. Subsequent transactions can also be used to refine the agreement and resolve issues that have arisen since the initial deal. Successful negotiators will allow plenty of time for the process and will target long-term protection against cost increases in return for helping Oracle achieve its commercial objectives.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemIT Buyers Are Unsure How To Get The Right Deal From Oracle

itemBest Practices For Achieving Mutually Acceptable Agreements With Oracle

itemBest Practice No. 1: Assemble As Much Leverage As You Can

itemBest Practice No. 2: Focus Your Efforts On A Few Key Objectives

itemBest Practice No. 3: Secure Enough Time For An Effective Negotiation

itemForrester's Next Practices: Plan For A Long-Term Relationship

itemIdentifying Your Challenges

itemCase Studies

Forrester has identified best practices from interviews with eight Oracle customers and two specialist negotiation companies that cannot be named for confidentiality reasons. Forrester has also drawn on a variety of other research sources, such as client inquiries, advisory engagements, and conversations with Oracle customers and employees.

Related Research Documents

itemInsights On Oracle's Strategy From Charles Phillips

September 14, 2007

itemEffective SAP Pricing And Licensing Negotiation

September 12, 2007

itemClose The Software Negotiation GAAP!

January 2, 2007

Find Documents In Related Categories

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Analyst: Duncan Jones
Technology: Application Strategy & Selection, Packaged Applications, Sourcing & Procurement, Sourcing Strategy & Execution
Industry: Financial Services, Government, Retail Banking
Geography: Asia Pacific, Europe, North America

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