Cloud ERP platforms are all the rage right now. Or… are they? Is anyone actually upgrading, or would the providers just like us to believe they are? Is this just one of SAP/Oracle’s sales tactics?
It turns out that Oracle’s Cloud platform (and revenues) might not have been quite as robust as we were all led to believe. So much so that Oracle went to extreme lengths in an attempt to achieve its goals.
In this series of blogs, we’re taking a look at some of the most common traps Oracle and SAP use, and explaining what (if anything) customers can do about them.
Today, we’re looking at some of the more extreme tactics Oracle has used to “convince” customers to switch to its Cloud ERP platform. These tactics were so shocking that even its own investors couldn’t stand idly by.
Recently, Oracle’s use of contentious sales tactics has become so pronounced, even its own investors have taken action against it.
In a lawsuit filed in February 2019, Oracle’s investors claim the company’s management made “false and misleading statements concerning the business results and prospects of the Company.”
Oracle’s management, the investors claim, knew the company’s Cloud revenues were partly driven by “…improper, coercive sales practices,” which included:
Oracle has two primary reasons for wanting to drive existing customers to adopt its Cloud solutions:
This is just one case of Oracle’s sales tactics to extract more money from customers and also keep them locked into expensive contracts.
Anecdotally, many customers claim Oracle has threatened them with audits or other consequences if they tried to leave Oracle’s support program or take other action that could harm Oracle’s profits.
If Oracle threatens your organisation with audits (or any other negative action), ask them to put it in writing. Doing so would place Oracle at severe risk of legal action, so it will not be able to do so.
The second thing you can do is approach third-party support providers to ask for quotes. Many of Oracle’s sales tactics are related to price rises or other financial penalties. Having much lower quotes from third parties will also increase your bargaining power.
If you’ve had enough of the traps Oracle and SAP set to keep you paying over the odds for poor quality support, we can help. Recently, we published a report on their most common tricks, and what customers can do to protect themselves.
In the report, we cover:
And much more.