There are some convincing reasons for an organisation to sign up to a ULA, but what’s in it for Oracle? Mark Bartrick from Forrester and Mark Smith from Support Revolution discuss why Oracle prefers organisations to choose their ULAs over other contracts in this recent webinar highlight.
A clear reason why Oracle loves ULAs is the fact that organisations are locked in to paying Oracle for three to five years. Oracle doesn’t have to do much to earn its revenue during the ULA period.
The ULA introduces clients to Oracle products that they otherwise wouldn’t have used, which can be highly beneficial to Oracle in the long term. Customers use more Oracle products with ULAs, with Oracle hoping that once they’ve tried the new products, they won’t be able to live without them.
Killing the competition
ULAs are a great way for Oracle to further integrate into your estate. In your initial sign-up, its ULAs enable Oracle to leverage some of the databases you may have with its competitors and replace them with Oracle products. Then, once you’re in a ULA, it’s highly unlikely that you will buy products from Oracle’s competitors like SAP or Microsoft. Why pay for a similar product when it’s included in the agreement you have with Oracle?
Limiting its customers’ choices
The name may imply a sense of freedom, but a ULA limits your choices. The ULA is an “all or nothing” bundled agreement so you have to use Oracle for everything, including support.
Oracle has seen its profits erode over the years due to third-party support, but ULAs force its customers to use one provider and one provider only, regardless of the quality or cost of support. That provider is, of course, Oracle.
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This is only one topic that we cover in the full ULA webinar. To watch the full webinar, follow the link below.