It is not a surprise that Oracle’s objective is to have you renew your ULA agreement. The renewal of a ULA agreement requires you to make a new license and/or cloud and support investment on top of your recurrent annual support fees. In case of a ULA renewal, there are different options that you should consider: Full ULA Renewal, Partial ULA Renewal, ULA to Cloud Renewal (full or partial).
Full ULA renewal
A full ULA renewal is taking place, when you decide to renew the Unlimited Deployment Right for all the Oracle programs included in the initial ULA. The period of time can be different than the one in the initial ULA (e.g. the initial ULA was for 3 years whilst the ULA Renewal is for 1 year) but includes the same Bill of Materials. This option is typically chosen by end users who expect a certain growth in their deployment of the Oracle programs after the initial ULA ends, while the required functionality of the Oracle programs remains the same as in the initial ULA. It is rather common though that the Oracle program functionalities required initially turn out to not be needed over time, either because of a change in the architectural designs or because of the fact that a number of Oracle programs have initially been added to the ULA by Oracle, to “sweeten the deal”. The number of end users that consider a full ULA renewal is rather limited and less than 5%.
Partial ULA renewal
In case of a ULA renewal, it is rather common that a growth is expected for a limited number of the Oracle programs included in the initial ULA, while other programs are deployed in a stable environment. For the last category, no additional licenses are expected in the period after the initial ULA expires. In this kind of situations, end users often choose to count, certify and convert a number of the Oracle programs in perpetual licenses going forward and to renew the unlimited deployment right for those Oracle programs for which additional growth is expected. As an example, you may still expect significant growth and will want to renew your ULA only for the Oracle Database Enterprise Edition and its most common used database options (e.g. Partitioning, Advanced Compression) and database management packs (Diagnostics Pack, Tuning Pack) but would certify its other database options and database management packs which are only being used in a limited number of environments. The benefit of a partial renewal (compared to a full renewal) is that the net license fees and net support fees can typically be negotiated to a lower amount.
In general, the price for either a new ULA or a ULA renewal will be higher if:
- The term is longer
- There are more Oracle programs included
- There are more legal entities included
ULA to cloud renewal (full or partial)
Apart from doing a full or partial ULA renewal, Oracle will also present you the option to make use of the “ULA 2 Cloud” program. Oracle offers this option because this program provides the opportunity to repurpose parts of the technical support fees associated with the ULA and to convert these into Cloud Credits. This program is created by Oracle to make it (financially) more attractive for end users to start making use of Oracle’s IaaS and PaaS Cloud Services instead of its competitors (Microsoft Azure, Amazon EC2 or RDS, Google Cloud and others). A detailed explanation of how this “ULA 2 Cloud” program works will be described in an upcoming article.