Oracle to hike support fees in line with inflation
US looks forward to 8% increase while consumer prices spike around the globe
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.
"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."
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, inflation has hit 9.4 percent and could hit 12 percent in October according to estimates. Meanwhile, Eurozone inflation reached 8.6 percent in June.
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.
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However, he pointed out that Oracle had introduced revisions to its terms and conditions for support.
The note [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, reports suggested Oracle was set to include Java in its license audits, some of which have gained notoriety among users and advisors.
Oracle is not the only tech company moving prices in line with inflation. Intel said earlier this month it plans to increase prices for a "majority of its microprocessors and peripheral chip products" due to "inflationary pressures." ®