Oracle's growth trajectory drives incentives for customers to buy licenses now that they perhaps do not need for several years. For organizations that have already selected Oracle as their preferred supplier, this can provide some leverage as they enter into contract negotiations. Sourcing managers that expect to buy a lot from Oracle over the next two to three years should take a good look at its unlimited license agreement (ULA), which eliminates the need to control and manage license metrics such as users and processors.

ULAs are typically a win-win deal for Oracle and the customer. In addition to simplified license management, buyers can get attractive discount levels with a ULA. For example, Forrester has helped clients cut the price they pay for Oracle licensees by over 30% by placing a single purchase order for what they would otherwise have bought over a three-year period. Oracle will use these discounts to encourage customers to sign a ULA, as it has to sell more and more ULAs each quarter to make up for the revenue it can no longer get from customers that already have them.

Standalone maintenance renewals are rarely even negotiations because Oracle holds all the cards. You can't even threaten to delay the PO because Oracle will bill you anyway, withhold support until you pay, and charge you reinstatement fees when you admit defeat. You can, however, try to avoid being in this position by securing amnesty from annual increases when you make the initial purchase. In return for a large contract, Oracle will often agree to hold maintenance costs for two to three years. In addition, while Oracle's repricing policy typically prevents you from cutting support fees on products you're not using, reps may agree to an adjustment if you scrap some licenses at the same time as you buy something else. Your total support won't go down, but it will go up less than it would have done had you not obtained the concession.