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An Oracle ULA is an arrangement in which an enterprise pays a fixed license and support fee to access an unlimited number of licenses for a specified set of Oracle products over a fixed time frame. The ULA can include a mixture of unlimited and quantity-based licenses. In other words, ULAs provide a simplified contract and single payment for Oracle products as opposed to managing multiple licenses and product fee payments.
As you approach your exit or renewal date for your Oracle unlimited license agreements (ULAs), you may be wondering what the best option is for your business. Should you renew or exit? And if you do choose to exit, are you prepared to do so?
We are addressing these questions and concerns in this blog, as well as providing the information you need to know to have a successful exit. As Oracle partners and compliance experts ourselves, Connor’s Software Advisory team is here to help.
An Oracle ULA is an arrangement in which an enterprise pays a fixed license and support fee to access an unlimited number of licenses for a specified set of Oracle products over a fixed time frame. The ULA can include a mixture of unlimited and quantity-based licenses. In other words, ULAs provide a simplified contract and single payment for Oracle products as opposed to managing multiple licenses and product fee payments.
The most common ULA term is three years. When the ULA term expires, you have two options:
Renew the ULA for another term and make any necessary changes to the license configuration.
Exit the ULA and certify license usage to determine how many licenses to keep moving forward.
An Oracle ULA is generally considered an easy way for a large, global organization to support business agility and value creation. If you are using many Oracle products often, then the costs may very well be worth it. However, if your organization is not using your Oracle products to the utmost, the costs associated with ULAs may not be worth it.
A ULA does provide some advantages, chief among them are cost savings, convenience, and simplicity. If you are expecting to grow over the course of the ULA period, you can access an array of Oracle products bundled together under one agreement and one bill, rather than a mishmash of complex licensing agreements for each product. As it is one bill and subscription, this can also help alleviate noncompliance concerns as you grow.
However, because you are negotiating all potentially needed subscriptions, it is important to negotiate intelligently and aggressively for favorable terms. Depending on the language in the contract, the ULA might not apply in specific situations and surprise costs may be incurred. If you do not check your subscription terms carefully, you may run into some issues down the line when certifying at the end of your ULA term.
Though we cannot tell you whether you should renew or exit, we can provide insight into your usage and determine which option could provide the best value.
If you have grown over your ULA program, the ULA potentially has provided value. If you have downsized during the subscription period, you may still be paying for users and products you are no longer utilizing. If either of these is the case, consulting with Connor can help you determine just how effective your ULA has been to save you time and money over the course of the subscription period.
Either way, at the end of your subscription period, your organization must provide Oracle with documentation detailing the deployment of all Oracle products used. Oracle processes this information to determine the number of regular licenses to grant if renewing – or how many you have used if exiting. The process is called certifying and once your license usage has been certified, you will get the rights to perpetual licenses for the usage that has been declared. If you’re found to be compliant, no additional license fees will be required.
There are several benefits to maintaining and renewing your ULA. If the previous subscription period worked well for your company, you may want to consider renewing. A chief benefit of a ULA is an increase in your compliance team’s productivity. Because you do not need to request additional budget during your ULA term, the time spent on Oracle license management is reduced.
When exiting it is important to make sure all your license and product usage are in order. While the ULA does minimize the possibility of being non-compliant, it is still possible. Depending on the size of the ULA footprint, the process of assessing software deployment and addressing compliance issues will need to start months beforehand to ensure that there is enough time to address all potential complications.
If it is determined you used more licenses than you paid for, you will be required to pay additional license fees. You will not need to pay additional support fees, but Oracle does charge an approximately 8% Inflationary Adjustment Rate (IAR).
The long-term effects of a ULA can be substantial. As a result, partnering with a software advisory (SA) firm that understands Oracle license management can save you time and money. Connor is the only Trust and Transparency partner operating in the region, equipped with an Oracle-approved audit methodology to get you on your way sooner.
Our SA team can conduct an assessment and cost-benefit analysis to help you determine if you should renew or exit your ULA. We can also provide you with the information necessary to make an educated decision to improve the return on investment for your Oracle investment.
For more information or to speak with a team member about your Oracle ULA, please contact us at softwareadvisoryservices@connor-consulting.com.
