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Oracle’s fiscal year ends – Will it impact you?

SoftwareOne blog editorial team
Blog Editorial Team
Publisher advisory

Every company, regardless its size, has a fiscal year. The fiscal year is the established period of time when an organization’s annual financial records commence and conclude, but it doesn’t necessarily correspond to the calendar year. Since Oracle has been founded in June, its fiscal year ends on May 31st. If you have ongoing business with Oracle, namely you’re using their products, you might wonder if their fiscal year ending will affect you in any way. In this article, we’ll explore the implications of Oracle’s fiscal year end and we’ll give you advice on how to prepare for May 31st.

Does Oracle’s fiscal year end impact you?

As an Oracle customer, you should know that their fiscal year end can have an impact on your business too. It’s not always the case, but it happens rather often. It can affect you both positively and negatively.

Let’s start with the positives. When Oracle’s fiscal year end is approaching, they’ll make an effort to achieve their sales targets and/or to achieve an over-score. This since any dollar achieved above their sales target will typically result in a large compensation to the sales representatives. This means that they want to close as many deals as possible. And what better way to close a deal than to offer discounts; sometimes huge discounts? Well, if you need something from Oracle, this is a good time to make a deal with them. We’ll go into details on how to prepare for such deal in a bit.

But how can this be bad for you? Oracle is not only offering large discounts to its customers towards the end of their fiscal year. The 6 months period before can also trigger audits. Since usually companies are found to be non-compliant during an audit, this is a good practice for Oracle to achieve more revenue. This also gives them a “compelling event” to achieve a situation which helps to close that new deal you have been talking about. Because of the high pressure at the end of the year to over-achieve the targets, sales may approach you in a rather aggressive manner. Again, you should be prepared. Being found non-compliant makes the negotiation difficult for you.

How to prepare for Oracle’s fiscal year end

If you want to make a deal with Oracle, our advice is to start by assessing your situation. What does this mean? Look into what you’re having, what you’re using and think what else you need. The best way to do this is to perform an internal audit. Gather all the data, both entitlements and deployments, analyze it and then make a plan. Part of your plan should also be the negotiation with Oracle. If you know what your needs are, you know what to ask for and more importantly, how.

Even if Oracle tends to offer huge discounts before their fiscal year end, you should still be prepared with arguments on why you should get the discount for your specific need. This, since Oracle has its own agenda – for example, moving customers to the cloud – and you don’t want to sign an agreement for something that you don’t need.

In the case of an audit letter from Oracle, your preparation shouldn’t differ much from that when you want to make a deal. Knowing your entitlements and deployments situation means that you’re aware if there’s a risk of being non-compliant. And if there is such a risk, you can address it before the audit letter arrives.

Conclusion

Even though Oracle’s fiscal year is approaching fast, you still have time to prepare for it. In theory, it shouldn’t impact you. However, we see it happening quite differently in practice. As prevention is the best medicine, it doesn’t hurt to be prepared.

Keep in mind: Oracle will most probably approach you soon. You don’t have to accept the deal they’re offering if it’s not something that you need. But if you make the deal, don’t treat it lightly. Review all the documents that you’re receiving, check if the ODs match what you discussed with Oracle’s sales rep. and if it’s indeed a better price for you. Therefore, close the best deal for you or close no deal at all.

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If preparing for Oracle’s fiscal year end feels overwhelming, keep in mind that you don’t have to do everything yourself. Asking for help can save you time, headaches and even budget. It doesn’t mean you don’t have your business under control; on the contrary, it means that you know the value of your business.

We're here for you!

If preparing for Oracle’s fiscal year end feels overwhelming, keep in mind that you don’t have to do everything yourself. Asking for help can save you time, headaches and even budget. It doesn’t mean you don’t have your business under control; on the contrary, it means that you know the value of your business.

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SoftwareOne blog editorial team

Blog Editorial Team

We analyse the latest IT trends and industry-relevant innovations to keep you up-to-date with the latest technology.