Trends Report

Oracle's Unlimited Licensing Is Good For Both Parties, If Buyers Can Get These Key Amendments

Negotiate Important Contract Changes To Prevent Later Headaches

April 27th, 2010
Duncan Jones, null
Duncan Jones
With contributors:
Liz Herbert , Rory Stanton

Summary

IT sourcing managers who expect to buy a lot from Oracle over the next two or three years should take a good look at its unlimited license agreement (ULA). Oracle has pioneered this type of deal, which simplifies life for buyers by eliminating the need to control and manage low-level license metrics such as user and processor. Provided that your colleagues can come up with a reliable estimate of what they're going to need, you should be able to secure a good price and favorable terms and conditions. However, vendor managers who already have or are considering an Oracle ULA should learn about the problems some of their peers have faced and insist on some important improvements to the standard contract language before they sign the deal. In addition to considering the usual software license scope issues such as external use of internal systems, buyers should address some ULA-specific issues by clarifying the certification process, making the product schedule more flexible, and securing protection against product and price changes.

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