So what are you getting from Oracle’s price rises?
We’ve spoken to many companies worldwide who were shocked to see their annual support bill increase by a whopping 4%. This price rise has come as a surprise to many people who have previously only seen smaller (but still significant) increases to their annual bills.
“Customer outrage at these price hikes is to be expected as companies already pay a significant amount for support, but see very little in return for these large sums of money. Many of Oracle’s products haven’t seen real innovation in years, with patches coming too late to fix major issues or simply not adding anything of value at all. The ROI is simply not there, but people feel trapped with limited options.”
Mark Smith, CEO of Support Revolution
So why the price rise?
Oracle will tell you that your support and maintenance bill goes towards funding:
- Access to their self-service support centre
- Access to their 24/7 support teams
- Access to their latest software patches
- Access to their latest security updates
But is this really the case? How much of your bill goes into these things?
Frankly, not a lot.
While Oracle provides access to 24/7 support teams, these teams are not held accountable by SLAs meaning you could be ‘on-hold’ to them indefinitely. Not only that, but many of their ‘resolutions’ will just point you to their self-service support centre, where you can find a DIY guide. Not really what you’d expect from top-tier support.
You would also expect your support money to go towards software and security patches, but as we’ve covered extensively in the past, these patches are often late or deliver very little ROI. You should expect more than a software update that contains little more than cosmetic upgrades, or a security patch that is three months late to fix a vulnerability.
So if your support bills don’t go into these things, where do they go?
Oracle’s main cash cow is their support and maintenance contracts which have a healthy profit margin that funds the rest of their business. Many think that Oracle’s price increases are used to invest in innovations and new technologies (like Cloud).
But this innovation isn’t for your benefit.
Oracle is not investing your money into improving products you already own; they are investing into their next wave of products for you to spend even more money on as they begin to de-support their ‘legacy’ products (further increasing your support bill) and trying to force you to upgrade.
Cloud-based customers may think they are safe from these tactics, but think again. On-premise customers have some protections in how much Oracle can increase their annual support and maintenance costs, but it seems that these same protections are not embedded into Oracle’s latest cloud contracts – meaning they can reset their pricing every single year once you’re out of any price-protection clauses in your initial agreement.
This behaviour is a vicious circle of sales supporting sales that many companies feel trapped into due to limited options and the difficulty/impracticality of migrating their systems away from Oracle.
But what if you could keep your current systems and just leave Oracle Support?
What can you do?
Join us at Support Revolution. By switching to our third-party support services, you can save between 50 and 90% on your Oracle support and maintenance fees every year (rather than paying more for them every year!).
Not only that, but our services include 24/7 support, real SLAs and reporting, and a superior security patching system provided by Gartner recommended TrendMicro.
So what are you waiting for? Complete our free online savings calculator today to see how much you can save.See your savings