Oracle Pool of Funds Contract
Are you considering a “pool of funds” contract with Oracle? Oracle is pushing these contracts hard. Our analysis shows these types of agreements are very high risk with medium reward. Oracle licensees should conduct an extensive review and analysis of these contracts before entering into them.
This exclusive white paper for Palisade clients is designed to give our clients a summary of Oracle’s POF contracts, best practices on contract terms and conditions, cost guidance, and negotiation strategies. As always, the Palisade Compliance staff is ready to supplement this white paper with additional contracting and licensing support to all our clients.
What’s old is new again with Oracle’s new Pool of Funds contracts. (POF) This contract is similar to, but not exactly like, Oracle’s old Network User License Agreements from the early 1990’s. These POF agreements require clients to pay an upfront fee to Oracle. For that money clients can “burn down” their payment by licensing products from a predefined list of products. Along with this burn down comes a possible onerous obligation to report to Oracle usage of products on a regular basis.
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