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Oracle to hike support fees in line with inflation

(2022/07/25)


Oracle support prices are set to rise by 8 percent in the US, and the company will also impose increases commensurate with inflation in other regions.

US consumer prices hit annual inflation of 8.8 percent in June, another 40-year high, prompting Big Red to look again at its support pricing.

Craig Guarente, founder and CEO of software licensing advisor Palisade Compliance, said clients had contacted his advisory firm notifying them of the price changes.

[1]

"Note that Oracle has an annual support increase embedded in their terms and conditions. It's based on the general inflation rate in a country," he said. "The US has run at between 1 and 2 percent for years. Now with inflation the way it is, Oracle is seizing that opportunity."

[2]

[3]

Oracle might take the opportunity to pitch cloud deals and give concessions on support increases, to gain leverage with customers, Guarante warned. While 8 percent applies to the US, Oracle is also set to introduce increases around the world, where inflation has been climbing to historic levels.

In the UK, [4]inflation has hit 9.4 percent and could hit 12 percent in October according to estimates. Meanwhile, [5]Eurozone inflation reached 8.6 percent in June.

[6]

Scott Jensen, Oracle practice lead at software licensing advisors Anglepoint, confirmed the news that Oracle was set to impose the support price rises, although he noted he had yet to see it in customers' new contracts or renewals.

[7]Oracle, Microsoft agree to shared custody of your workloads in the cloud

[8]Google, Oracle clouds still affected by UK heatwave

[9]Apple hits brakes on hiring amid economic uncertainty

[10]Intel plans chip price hikes due to 'inflationary pressures'

However, he pointed out that Oracle had introduced revisions to its terms and conditions for support.

The note

[11]PDF

, which covers support pricing in the event of termination of a subset of licenses, says: "Support for the remaining licenses on the license order will be priced at Oracle's price list for support in effect at the time of termination or reduction minus the applicable standard discount. Such support will not exceed the previous support fee paid, plus any applicable country annual adjustments for both the remaining licenses and the licenses being terminated or unsupported…"

The Reg 's emphasis].

Oracle declined the opportunity to comment on this article.

Earlier this year, [12]reports suggested Oracle was set to include Java in its license audits , some of which have gained notoriety among users and advisors.

[13]

Oracle is not the only tech company moving prices in line with inflation. Intel said [14]earlier this month it plans to increase prices for a "majority of its microprocessors and peripheral chip products" due to "inflationary pressures." ®

Get our [15]Tech Resources



[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Yt6@JaVdnKcLX5UfTBRf7AAAARM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Yt6@JaVdnKcLX5UfTBRf7AAAARM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Yt6@JaVdnKcLX5UfTBRf7AAAARM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[4] https://www.theguardian.com/business/2022/jul/20/uk-inflation-rise-petrol-diesel-prices

[5] https://www.ft.com/content/cb77a45e-0b61-4be3-a7c2-54498c78c808

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Yt6@JaVdnKcLX5UfTBRf7AAAARM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://www.theregister.com/2022/07/20/oracle_microsoft_multi_cloud_database/

[8] https://www.theregister.com/2022/07/20/google_oracle_cloud_heat_update/

[9] https://www.theregister.com/2022/07/19/apple_hiring_freeze/

[10] https://www.theregister.com/2022/07/14/intel_plans_price_hikes_for/

[11] https://www.oracle.com/us/support/library/057419.pdf

[12] https://www.theregister.com/2022/03/22/oracle_starts_to_include_java/

[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Yt6@JaVdnKcLX5UfTBRf7AAAARM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[14] https://www.theregister.com/2022/07/14/intel_plans_price_hikes_for/

[15] https://whitepapers.theregister.com/




That's nice.

DJO

Obviously they will be increasing the salary for all their staff and contractors by the same amount.

OK, I have no evidence they will but Shirley they wouldn't want to be though of a hypocrites or exploitative would they?

Re: That's nice.

elsergiovolador

If they wanted to have money for salaries, surely they would have to increase by much more considering the 8% gross raise will actually still be a pay cut.

Re: That's nice.

Anonymous Coward

I see your mistake.

"Obviously they will be increasing the salary for all their staff and contractors by the same amount"

No increase for the staff and contractors - just the PHBs.

The bill is coming in

VoiceOfTruth

-> US consumer prices hit annual inflation of 8.8 percent in June

The USA's trade war against China (and other attempts at maintaining its hegemony) is coming home to roost. Don't worry, the 1% will be OK. The rest of you can be happy knowing you can't afford medical insurance. Enjoy your food stamps. For those who thought you were middle class, you can prepare a list of dollar stores while you can still afford an internet connection.

"in line with inflation"

Pascal Monett

Yes, of course. Perfectly logical.

Because it is Oracle that is paying for the electricity that makes their clients' servers run, right ?

What ? No ? The clients have their servers hosted locally, or with a Cloud contract ?

So, basically, Oracle is just using an economic excuse to increase its revenues without any expenditure whatsoever ?

My, I would like to able to print money like that.

Oracle to hike support fees in line with super yacht price rises

trevorde

FTFY

OhForF'

>Oracle might take the opportunity to pitch cloud deals and give concessions on support increases<

and Oracle's customers might take the opportunity to evaluate if continuing with Oracle or other partners is best value for their money.

I was in a bar and I walked up to a beautiful woman and said, "Do you live
around here often?" She said, "You're wearing two different-color socks."
I said, "Yes, but to me they're the same because I go by thickness."
She said, "How do you feel?" And I said, "You know when you're sitting on a
chair and you lean back so you're just on two legs and you lean too far so
you almost fall over but at the last second you catch yourself? I feel like
that all the time..."
-- Steven Wright, "Gentlemen's Quarterly"