After working for Oracle for 13 years, I was used to helping Oracle sales reps with their deals, but I didn’t expect them to still call after I left. Let me start from the beginning. We receive a lot of requests from clients via our website asking for help, and this day was no different. We received a common request from a customer asking for advice on how to reduce their Oracle support costs.
I setup the call for introductions and to get a feel and understanding of the customer challenge to see if it was something we could help them with. The call started as normal, when the perceived customer said, “I need to be honest with you, I am actually an Oracle sales rep, but I need your help!!!!”
Well of course, the conversation took a different turn as a result of their transparency, but the rep proceeded to let me know about the challenges they were faced with as a result of Oracle support policies. He was frustrated at not being able to help customers reduce their Oracle support spend.
The predicament here is, the customers budget has not increased, but more likely is reduced, with more focus on savings. The rep only gets paid on new license sales and support renewals are not part of their compensation package. So, an Oracle sales rep’s only interest is in selling new products to get paid, and the only way a customer is going to free up money for additional new technologies is to reduce their Oracle spend. And with reports of Oracle making 90% margins on technical support for their software products, reducing customer support spend in favour of new licenses is not a priority. This is the circle of life for an Oracle sales rep.
According to the rep, as they are unable to help customers reduce their support spend, the rep is losing customers who now look at alternatives to Oracle, referencing IBM, Microsoft and Rimini Street as a way to reduce their annual costs, and take advantage of new technologies.
However, there are strategies that can be implemented to reduce Oracle support spend, and we have been successful with navigating the maze, helping customers reduce their spend, and take back control of their relationship and costs with Oracle. Though I certainly wasn’t going to give the Oracle sales rep the map to the maze.