Oracle, Support,

What is Oracle’s repricing policy?

Short Answer

Repricing is Oracle’s strategy to keep annual software support fees constant when line items are removed or reduced inside a support contract.

In-Depth Answer

Repricing is actually referred to as Pricing Following Reduction of Licenses or Support Level in Oracle Technical Support Policies.

In summary, the annual support you pay is initiated in perpetuity as a percentage (typically 22%) of the original net license fee, which is discounted based on volume. Remove some of that volume from a subsequent support renewal and Oracle will forfeit the effective discount all the way back to full list price. While you won’t pay more, you won’t pay less until the effective discount dips below 25% off.

The problem is Oracle routinely discounts its software far more for far less volume than the repricing policy seems to indicate.

Repricing is the key to Oracle’s dominance. Repricing is Oracle’s insidiously brilliant policy to keep customers paying high-profit support for poorly-discounted, unused, and/or old software. In fact, we like to say that Oracle is a collection agency that dabbles in software. Anyone doubting this axiom has not tried to spend less with Oracle on long-standing annual software support fees.

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