Gartner Research

Oracle SaaS Contracts: 6 Crucial Terms to Negotiate to Minimize Cost and Maintain Flexibility

Published: 15 May 2018

ID: G00355650

Analyst(s): Melanie Alexander , Jo Liversidge , Roberto Sacco , Rob Wilkes

Summary

Oracle perpetuates the perception that its SaaS contract terms are fixed and non-negotiable. However, sourcing and vendor management leaders can negotiate key contract terms that will reduce overall subscription costs, protect future investment and offer needed flexibility.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Minimize Future Cost Exposure by Negotiating Caps on Renewal Price Increases and Including Price Holds for Products and Add-Ons
  • Reduce Total Subscription Costs by Negotiating Phased Deployments and Improve Cash Flow With Quarterly Payments
  • Require Service-Level Credits and the Right to Terminate Without Penalty for Chronic Availability Failures
  • Bottom Line: While Not All Oracle Cloud/SaaS Terms Are Negotiable, It Pays to Know Which Ones Are

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