Introduction
An unfavorable, long-standing Oracle deal
Not every deal can stand the test of time. Companies evolve, technologies expand, and agreements need amendments to keep pace with business needs. In this case study, we delve into a success story of a prominent third-party systems integrator who collaborated with LicenseFortress to provide expert negotiations to their client in transforming an unfavorable, long-standing Oracle deal into a beneficial new agreement.
Customer Challenges
A 20-Year-Old Oracle Deal
The client had signed a deal with Oracle nearly twenty years ago. The original deal covered a lot of Oracle products, including the E-Business ERP system, and was tied to the client’s overall revenue. At the time, the deal was a win-win for the client and Oracle; however, it had long since hit its “best before date” and was not serving the client well.
Requests for Negotiations Fall on Deaf Ears
They had tried unsuccessfully to get Oracle to the negotiating table to rework the contract terms so it better aligned with the company’s current needs. But despite the client’s repeated appeals, Oracle remained unresponsive to their requests.
Each year – for SEVEN YEARS – the client requested to discuss the topic with Oracle, but the answer for each billing cycle was the same, “Pay your bill. We’ll deal with this later.”
Is Oracle the Right Choice for Their Business Needs?
Oracle’s unwillingness to discuss the deal in light of the company’s current needs (plans to move more infrastructure and workflow to the cloud) made the client wonder if Oracle was the right partner for the next phase of the client’s business growth.
Solution
Introduction to LicenseFortress
Fortunately, the client had an existing relationship with a seasoned systems integrator. They suggested that the client speak with LicenseFortress regarding the Oracle deal issue. Ultimately, this would be pivotal in setting the stage for transitioning the deal into one that served both parties.
LicenseFortress’ Negotiation Expertise Brought Oracle Back to the Table
LicenseFortress swiftly comprehended the client’s predicament and initiated the resolution process. Through strategic maneuvers, LicenseFortress expert negotiations identified pressure points that compelled Oracle to re-open discussions.
In collaboration with the systems integrator firm, LicenseFortress successfully brokered a new contract. The contract favored the client and, additionally, proved advantageous for Oracle.
RESULTS
Client Save $2.5MM USD Over the Next Five Years
The new contract negotiated with Oracle saved the client $1MM USD immediately by renegotiating revenue limits. Additionally, it garnered another $1.5MM USD over the next five years by reducing the annual support increase cap from 8% down to 2%. This, of course, pleased the client that had been stonewalled by Oracle for so long. Now, they were able to move forward with the Oracle relationship as the client moved more of its workflow into the cloud.
Improved Oracle Relationship
But the good news on this deal didn’t end with the client, as Oracle was also pleased with the outcome. Oracle had demonstrated that they wanted to be a good strategic partner, negotiating in good faith and working with our client as they moved to the cloud, using Oracle as a base. Oracle was able to retain a client that could have been on its way out the door. Plus, the client increased their commitment to Oracle Cloud over the next five years. Oracle is now positioned to be the client’s strategic cloud vendor past that five-year mark.
Finally, the systems integrator firm that steered the client towards LicenseFortress emerged as the unsung hero of this project. Their foresight of putting the client’s needs first and foremost paid huge dividends. Recognizing the unfavorable deal and guiding the client to a transformative solution earned them a deep appreciation of the client.
Lessons Learned
Good Partnerships Drive Efficiency
This case study emphasizes the importance of not accepting an unfavorable Oracle deal as a fixed reality. LicenseFortress possesses a profound understanding of Oracle’s aggressive negotiating practices. They consistently succeed in assisting clients with resolving such challenges to benefit both parties involved. Despite any past frustrations, clients like the one described in this case study can maintain a fruitful business partnership with Oracle. Resulting in an appreciation for their excellent technology. By seeking expert assistance and engaging in strategic negotiations, organizations can transform detrimental deals into favorable solutions. Ultimately aligning their evolving business needs, saving costs, and fostering strong partnerships with their vendors.
