Oracle Term Licence update.

At the start of September Oracle announced it will no longer offer Term licences for its on-premise products.

Here is the actual explanation provided by Oracle in the latest partner update:

We are continually working to improve your experience as an Oracle PartnerNetwork member by simplifying and streamlining our partner program and associated engagements.

With our joint customers’ focus directed toward the Cloud, and the on-premise customers moving more toward perpetual licenses, we made a strategic decision to eliminate on-premise term licenses, providing streamlined product and licensing selections when placing on-premise orders. Effective September 1, 2020, Oracle will no longer offer on-premise term licenses (1-5year terms), with the exception of key Oracle Technology products that will retain 1year term licenses (see list below):

So nice spin for justifying reducing client choice?

So, what does this actually mean to users of Oracle software products in the UK? Probably very little for many users of Oracle’s applications such as e-Business suite which were usually procured on perpetual licences or via subscriptions. Most of Oracle’s on-premise core technology products such as the Database, Options, Middleware products such as Weblogic and the Internet Application Server, Forms & Reports etc are still available with 1-year terms licences.

This means that that 2, 3 & 5-year term licences are no longer available to purchase.

The majority of Oracle licence sales tend to be Perpetual. Although, 1&2year term licences are very popular especially for project environments and when experiencing budget issues. So, we are sad to see the end of 2year term licences which were popular and less concerned about 3,4&5year term licences.

Naturally, Oracle is often very coy about term licences preferring the bigger numbers that accompany perpetual licences. At AgileTS we always offer clients the choice of Term and Perpetual licences and will work with clients to model the most cost-effective and appropriate licence solution for their actual needs.

If you are looking to purchase new Oracle licences or simply review your Oracle licence estate or sanity check existing proposals, please do get it touch with us hello@agilets.com