Innovation comes in many forms. For example, some of Oracle’s most ingenious features have little to do with software. Rather, Oracle’s Technical Support Policies are arguably responsible for the publisher’s dominance. Much has been written of these policies, so the purpose of this post is not to explain them, but to warn unsuspecting customers of a couple associated pitfalls.
Anyone who has tried to remove shelfware (entitled software that is not in use) from an Oracle software support contract has seen these policies in action. The frustrating result for Oracle’s customers is the disconnect between the fees paid for software support and the value received in return. As a side note, it doesn’t help that Oracle touts that its software support business is operating at 89% profit margin; after all, where else do companies spend money that provides only 10 cents on the dollar in return?
Beware of intriguing discounts. They may not equate to value.
The four technical support policies of License Sets, Matching Service Levels, Reinstatement, and Pricing following Reduction (aka Repricing) embody the aforementioned revenue-capturing innovations. However, these four policies represent the Venus flytrap of operational expense.