Client Background
A global manufacturing organization was preparing to move forward with a significant Oracle Cloud subscription investment to support core enterprise systems and future growth. While Oracle Cloud aligned with the organization’s technical and operational objectives, leadership required confidence that the commercial structure reflected market pricing, minimized long-term financial risk, and supported sustainable cloud adoption.
Given the size and duration of the investment, the organization sought an independent assessment of Oracle’s proposal before committing to a multi-year agreement.
The Challenge
Oracle’s initial cloud subscription proposal presented elevated cost and risk concerns, including cumulative total cost of ownership projections that exceeded expectations. Early analysis showed that pricing and commercial structures were heavily skewed in Oracle’s favor, creating unnecessary long-term financial exposure.
Without validated benchmarks and a fact-based negotiation strategy, the organization faced limited leverage to challenge Oracle’s standard commercial position and ensure the deal aligned with enterprise buying power.
UpperEdge’s Approach
UpperEdge conducted a comprehensive commercial assessment of Oracle’s cloud proposal, comparing the initial offer against market benchmarks and achievable deal outcomes. This analysis focused on cumulative TCO, subscription pricing, and the structural mechanics driving long-term cost escalation.
Using Oracle-specific negotiation expertise, UpperEdge supported the client in reframing negotiations around the client’s requirements, value realization capabilities, and risk exposure. This approach enabled leadership to push back on unfavorable assumptions, apply disciplined pressure, and secure meaningful revisions to Oracle’s proposed terms.
The Results
- Achieved a material reduction in cumulative total cost of ownership, with improvements ranging from 18% to 24% compared to Oracle’s initial proposal
- Significantly improved overall deal economics, reducing long-term cloud subscription risk
- Final agreement aligned pricing and structure more closely with enterprise market benchmarks
- Enabled executive stakeholders to proceed with confidence, knowing the Oracle Cloud investment was commercially defensible and strategically sound
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