Tips to Reduce Oracle Support Fees
- Switch to third-party support for up to 50% savings.
- Migrate to Oracle Cloud Infrastructure for cost reduction.
- Negotiate multi-year support renewals with 0% caps.
- Audit for unused licenses and terminate idle software.
- Optimize license models (e.g., named user-plus).
- Downgrade from Enterprise to Standard editions.
- Use efficient hardware platforms to lower licensing needs.
- Optimize Oracle cloud deployment and pay-as-you-go.
- Conduct annual license reviews for consolidation opportunities.
- Implement hard partitioning to reduce required licenses.
Top 10 Tips to Reduce Oracle Support Fees
Oracle support fees can be a major burden on IT budgets. However, effective ways exist to manage and reduce these costs without compromising operational needs.
Here are the top 10 strategies to help you lower Oracle support fees:
1. Switch to Third-Party Support
Switching to third-party support can reduce Oracle support costs by up to 50%. This particularly benefits applications such as Siebel, JDE, E-Business Suite, and Peoplesoft.
However, moving to third-party support will mean losing access to Oracle updates and patches. This approach works best for organizations that no longer need to stay current with Oracle’s latest features.
2. Migrate to Oracle Cloud Infrastructure (OCI)
Migrating to Oracle Cloud Infrastructure (OCI) can help you achieve up to 60% cost reduction over four years. This strategy is especially valuable for Unlimited License Agreements (ULA) customers, as moving to OCI allows them to terminate on-premises support contracts.
By transitioning to OCI, you benefit from modern cloud capabilities while reducing overall support fees.
3. Negotiate Support Renewal Caps
Oracle typically raises support fees by 8% annually. Negotiating support renewal caps can help you combat these increases. Securing a multi-year renewal agreement with a 0% cap is a powerful way to predict costs.
Committing to longer-term support contracts can improve your negotiation position and lead to favorable terms.
4. Eliminate Unused Licenses
Conducting regular usage audits is an easy way to identify and eliminate unnecessary support costs. Many organizations find that 30% of their licenses are unused.
Terminating support for these idle licenses is an effective way to save money without impacting your business operations. Regular reviews can ensure that you’re not paying for software you no longer use.
5. Implement License Model Optimization
Switching your licensing model from processor-based to named user-plus licenses can significantly reduce support fees. In some cases, leveraging specific licensing rights, such as those for test environments, can help cut required licenses by up to 60%. Optimizing your license model can ensure you pay for what you need rather than maintaining excessive, costly licenses.
6. Consider Software Downgrading
Evaluate if your organization truly needs advanced Oracle features. In many cases, switching from Enterprise to Standard editions can provide all the necessary functionality at a much lower cost.
This is especially effective for underutilized installations, where downgrading can yield substantial savings while maintaining productivity.
7. Leverage Hardware Platform Changes
Using more efficient hardware platforms can also reduce Oracle support costs. Consider moving to platforms like IBM LPAR or hardware with favorable core factors.
This can reduce licensing requirements by up to 40%. Careful selection of hardware that optimizes core utilization can also help reduce the number of Oracle licenses needed.
8. Optimize Cloud Deployment
If your organization deploys Oracle in the cloud, consider using a pay-as-you-go model for test environments to reduce costs. Evaluate alternatives such as AWS or Azure for hosting Oracle workloads.
Cloud providers often have migration incentives, which can lower your costs further. Optimizing your cloud deployment with the right provider and pricing model effectively minimizes ongoing expenses.
9. Implement Regular License Reviews
Conducting annual license reviews is critical for optimizing your Oracle support costs. Regular reviews help identify opportunities for consolidation and can reduce licensing needs by 10-30%.
These exercises can uncover potential savings you might otherwise miss, allowing you to consistently adjust your strategy and maintain cost efficiency.
10. Utilize Hard Partitioning
One often overlooked method is using hard partitioning to divide servers into smaller units. This allows you to reduce the required licenses, especially for servers running multiple workloads.
Avoid using VMware, as Oracle often disputes its partitioning as non-compliant, increasing audit risks. Instead, consider supporting hard partitioning methods to effectively reduce licensing obligations.
Oracle Support Fees FAQs
What is third-party support for Oracle? Third-party support refers to using non-Oracle providers to handle software support. It can reduce costs by up to 50% but means losing access to Oracle patches and updates.
Can migrating to Oracle Cloud reduce support costs? Yes, migrating to Oracle Cloud Infrastructure (OCI) can reduce support costs by up to 60% over four years, especially for those with Unlimited License Agreements (ULAs).
How do I negotiate Oracle support fees? One option is negotiating multi-year renewals with fee increases capped at 0% over a long-term agreement. This can provide predictable costs and limit Oracle’s typical 8% annual fee hikes.
Can terminating unused licenses result in substantial savings? Yes, it can. Conduct a regular audit to identify and terminate support for licenses that are no longer used.
What does license model optimization mean? License model optimization involves changing from processor-based to named user-plus licenses or leveraging test environment rights to reduce required licenses and lower costs.
Is downgrading software editions a viable option? If your organization doesn’t need advanced features, downgrading from Enterprise to Standard editions can save money. This works best for underutilized installations.
How can hardware choices impact Oracle support fees? Using hardware with favorable core factors or efficient platforms like IBM LPAR can reduce licensing requirements by up to 40%, cutting overall Oracle support fees.
Should I use a pay-as-you-go model for cloud deployment? Yes, using a pay-as-you-go model for test environments helps reduce unnecessary costs. For further savings, consider alternatives to Oracle’s cloud services, such as AWS or Azure.
Why are annual license reviews important? Annual license reviews help identify underutilized or redundant licenses, which can be terminated to reduce costs. Regular optimization exercises can lower licensing needs by 10-30%.
What is hard partitioning, and why is it useful? Hard partitioning divides a server into smaller units, reducing the required licenses. It’s recommended over VMware, which Oracle often disputes, leading to audit risks.
Can support fees be reduced without compromising compliance? Yes, careful planning, regular audits, and consulting experts help reduce support fees while staying compliant. Non-compliance can lead to hefty penalties, making it crucial to stay informed.
How can I reduce Oracle costs for test environments? To reduce overall expenses, I can use cloud-based pay-as-you-go models for non-production systems and optimize test environments with named user-plus licenses.
Is Oracle likely to negotiate support fee reductions? Oracle may be open to negotiations, especially if you consider switching to OCI or committing to longer-term agreements. A strong negotiation position requires accurate usage data.
What are common mistakes in managing Oracle support? Common mistakes include not conducting regular audits, failing to negotiate renewal caps, and paying for unused licenses. These lead to unnecessary expenses that could be reduced with proactive management.
Should I consider switching to an alternative Java platform? If your Oracle support costs are high, consider switching to an open-source Java platform like OpenJDK. It offers similar features without the heavy support fees associated with Oracle.
