A client recently was in an audit with findings in the $10 million range as Oracle pushed them hard to settlement. After coming to us and taking a hard look, they were able to resolve this finding through the migration of licenses. It seems like a great trade-off, right? $10 million reduced in this case to about $1 million with migrations and small purchases. I told the client to make sure to send me the renewal as soon as they received it because lately, I have been seeing issues with support renewals not reflecting migrations correctly.
Fast forward almost a year and the client sent the renewal as I requested. As expected, all of the products and counts are there, including the newly migrated items. The original items are there with the correct quantities lowered from the migration. But here is the kicker, the pricing never changed and in fact, it went up!! The products they were paying for showed lower quantities at a higher price.
Rough Example:
- Let’s say they had 150 licenses and they migrated 50 from processor to named user plus.
- The original invoice was 150 licenses at $100,000.
- The new invoice now has 100 licenses but still at $100,000 plus 4% uplift AND 2500 Named User Licenses with their new support amounts.
What Oracle failed to do is reduce the license amount for the new lower counts and in the case of our client, the support renewal was over $100,000 too much. Too often clients get these invoices and just pay them unless there is a glaring problem or just think that things were supposed to go up because they made a purchase. This seems to be happening in more than 50% of migrations I have reviewed, which is worth taking a look!
If you have processed a migration in the past, contact us to do a complimentary review!
