There is a cozy process to buying Oracle, and the best way to save money on Oracle is to disrupt the process!
A decade running procurement (vendor management, purchasing, etc.) organizations taught me that most of them assume that the requester (in this case IT) has evaluated the alternatives and decided on the right solution. Procurement then obtains that solution for the best price and on the best terms. Procurement is measured against savings quotas and time to purchase.
In software, it is rare for procurement to say to IT, “There are some other technical options that you need to justify not selecting, they are: X, Y, and Z.” When procurement rolls up to the CFO, they do not try to compete with the internal customer’s business knowledge, they are trying to reduce the transactional cost. Period.
Oracle knows this, in fact, they are counting on it.
People in IT who are loyal to Oracle tend to specify Oracle solutions to problems. They might consider alternatives, but ultimately they land on the technology platforms with which they are the most familiar.
Back in the old days this was called, “Nobody ever got fired for buying IBM (the safe solution).”
Oracle’s policies and sales behavior are designed around this flow:
- IT specifies an Oracle solution, often refusing to even consider alternatives (e.g. competing software, third party support, non-Oracle cloud).
- Once it gets to procurement, Oracle offers steep ‘dscounts’ off the license fees that allow the procurement team to show big savings (thus meeting their goals).
- Oracle (and procurement) gloss over contractual terms, prerequisite products, support costs, or other issues that will cause heartache later.
- Close the deal before the end of the Oracle sales quarter.
Saving money on Oracle starts with disrupting this comfortable flow. Thought-leaders in IT are challenging it by considering competing products, asking tough questions about performance and prerequisites, and refusing to take “because Oracle said so” as gospel.
People in procurement are taking a more strategic view, not just looking at illusory “savings” on this transaction, but looking at the total cost of delivering the business functions to be supported! CFOs are increasingly making it clear that simple skill at getting another point of discount out of Oracle is no longer enough. Organizations buying software and services need to think bigger.
This is where saving money on Oracle starts
Refusing to be intimidated by Oracle’s aggressive sales tactics, confusing policies, and business practices that assume the sale. It starts with facts, about your actual compliance posture, so that an Oracle audit cannot wipe out all of your gains. It takes time, but people are doing it, and Palisade is happy to support those people. Let us know if we can help!