$12M Saved on Oracle Renewal, Case Study
How a Fortune 500 retailer used ISVCOSELL pricing intelligence to save $12M on Oracle Database and E-Business Suite renewal.
Key points
- Their existing agreement, a five-year deal covering Oracle Database Enterprise Edition, E-Business Suite, and Oracle Analytics Cloud, was expiring, and Oracle's account team had opened negotiations with a renewal proposal 18% above the expiring contract.
- Their CPO escalated the renewal to executive visibility given the contract size: $42 million over five years, with Oracle Database at the core of their e-commerce and supply chain operations.
- Oracle Database Enterprise Edition was priced 31% above the median for retail-sector organizations with equivalent processor counts.
- E-Business Suite Annual Support, which Oracle rarely discounts, had nonetheless been negotiated lower by 22% of comparable clients through restructuring their Unlimited License Agreement terms.
- The report also flagged a contract clause the retailer's legal team had not identified: a support fee escalation provision that would automatically increase Oracle support costs by 4% annually, independent of the base contract.
- In a $42M deal, this clause alone represented over $3M in unplanned costs over the five-year term.
- Total value of the signed agreement: $30M over three years (versus $42M over five years proposed).
- Direct savings attributable to benchmark-supported negotiation: $12M over the equivalent contract period.
- First, Oracle's initial proposals are rarely close to what comparable organizations accept, the gap in this case was 29%.
Other Benchmark Engagements
Microsoft · Banking 35% Below Market on Microsoft EA Global bank benchmarks Microsoft Enterprise Agreement renewal. $18M savings identified.AWS · Technology Right-Sized AWS Commitment with Cloud Benchmarks Tech company avoids $9M in over-committed AWS spend using EDP benchmark data.8 Case Studies Published Oracle, Microsoft, AWS, SAP, SaaS portfolio, PE due diligence, AI platforms, cybersecurity consolidation. View All Case Studies →
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Related reading
- Start your free ISVCOSELL trial
- AWS · Technology Right-Sized AWS Commitment with Cloud Benchmarks Tech company avoids $9M in over-committed AWS spend using EDP benchmark data.
- Microsoft · Banking 35% Below Market on Microsoft EA Global bank benchmarks Microsoft Enterprise Agreement renewal. $18M savings identified.
- 8 Case Studies Published Oracle, Microsoft, AWS, SAP, SaaS portfolio, PE due diligence, AI platforms, cybersecurity consolidation. View All Case Studies
- Oracle Pricing Profile
Pricing data and source text from the VendorBenchmark library. Co-sell reading is this site’s.