Your business may require new capabilities to achieve its business goals, which could result in the requirement to buy additional Fusion Cloud subscription services. Or your organisation may require additional users or capacity for some of the already purchased Fusion Cloud subscription services. Having a discount hold to obtain additional or new Fusion Cloud subscription services can save you valuable time and enable your business to continue to run efficiently as it grows.
Some end-user organisations included an Expansion clause in their Oracle Fusion Cloud contracts to maintain their initial discount rate for future additional purchases. In this article, we’ll explore what this discount hold for expansion clause means, its potential benefits, and how to maximise its value within Oracle Fusion Cloud contracts.
This clause offers several advantages for end-user organisations using Oracle Fusion Cloud:
Enhanced Flexibility: As businesses evolve, so do their cloud service needs. Initially, an end-user organisation may require certain modules and later need additional ones or a greater number of users. The Discount Hold for Expansion clause allows for the addition of these modules or users without the need to negotiate an entirely new contract from the start.
Improved Responsiveness: Purchasing an extra module or additional users will only require an addendum to your existing contract with a set price. This enables you to promptly permit your business to use the software as per its requirements.
Cost Efficiency: Pricing at Oracle, like with all other large software publishers, typically depends on the volume of software purchased. Buying a single new module or a few users is likely to be a small purchase, resulting in a limited discount. Conversely, leveraging the volume of your initial purchase can help you achieve a higher discount rate, and therefore reducing costs when adding extra modules or users.
Scope of Products: The Discount Hold for Expansion may be limited to the products and metrics already ordered in the initial order. It could also include other modules or metrics from a defined list or exclude certain modules. Anticipating growth areas will help you define what should become part of the discount hold.
Timeframe: The clause will always be limited in time and typically only available to be used for the initial term of the contract. Because of this, you should make sure that it aligns with your expansion projections.
Minimum Order: In some cases, a minimum value for each order might be required to benefit from the offered discounted rate. Consolidating your needs could help you reach the threshold.
Understanding and effectively leveraging the Discount Hold for Expansion clause in Oracle Fusion Cloud contracts can provide significant benefits for your organisation. By anticipating future needs and incorporating this clause into your contracts, you can ensure enhanced flexibility, improved responsiveness, and cost efficiency. This proactive approach allows your business to swiftly adapt to changing requirements without the need for extensive renegotiations, ultimately supporting your growth and operational efficiency.
Don’t miss the opportunity to take control of your Oracle Fusion Cloud contracts. If you have any further questions, don’t hesitate to reach out to your SoftwareOne representative and schedule a call with one of our Oracle Solution Specialists.
SoftwareOne has solved many of the Oracle licensing challenges you may face. Tell us about your business challenge, and we’ll get right back to you.
SoftwareOne has solved many of the Oracle licensing challenges you may face. Tell us about your business challenge, and we’ll get right back to you.
