Negotiating with Oracle

Oracle has blamed falling first quarter sales on the recession, currency shifts and weakness in resellers’ performance. The database specialist posted a 5% decline in revenues to $5.1bn but managed to increase profits 4% to $1.1bn. One example of reseller underperformance is quoted as SAP who is selling fewer databases because its application business is down. New Oracle software licence revenues were down 14% while technology licence revenues fell 19%, and software licence updates and product support revenues dropped 8%. Services turnover fell 18%. Keeping expenses in check was partly responsible for the small increase in profits. According to Oracle their sales pipeline continues to grow, although closing rates are more conservative. The firm reckons sales will drop 1% to 4% compared to a year ago. So if you have to negotiate a new or renewal deal with Oracle this year, then make sure you squeeze their sales rep (or their reseller) for every last drop of discount before you sign. They are under pressure to keep revenues moving forward, and it’s your money that they need to keep their commission stream flowing! If you are unsure of how to negotiate with Oracle, then let Silver Bullet Associates guide you through their sales maze.

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