As you all know, Oracle has the IAR uplift they charge on support contracts yearly which are now at 4% for most. Every one of our clients dreads these uplifts, but I was wondering today how many companies check this to make sure it is correct and actively negotiate it? How many just pay the invoice when it comes in? Based on our experience it is probably an even mix for both sides. But here is the kicker – how many of you have Oracle hardware such as Exadata? Have you looked at those renewals lately?
Oracle policy is to add an Aged Hardware Surcharge to any hardware older than 5 years. This surcharge is an additional 15% above and beyond the IAR of 4%!!! This means if you have hardware from Oracle that you are paying support on that is 5 years old or older, you are paying a 19% uplift every year. How does this stack up to eroding discounts?
Make sure you watch your renewals and plan early for hardware upgrades or even looking into different support models.
