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Aggressive Cost-Cutting Services. Robust Solutions.

 

 
 
 

Active Cycle Procurement™-Reduce Oracle® Net License

 

Active Cycle Procurement™ is a "one of a kind" Tier I ERP Procurement Service no business ever has, does, or ever will have the ability to offer to any Client.

 

At NO FINANCIAL RISK, ERP Solutions will produce deep cuts to a Client’s Best Negotiated and Lowest Oracle Net License offer. The result is an immediate reduction to first year support (22% of the final Net License) and the resultant lower 5-Year Total Cost of Ownership ("TCO"). We intervene only after a Client and or their Representative has negotiated what is likely a very high discount with Oracle® and the Client is "committed" to move forward with a "Financially Justified" large Investment in Tier I ERP. High Discounts on large ERP win-winInvestments, mean nothing and a Client ends up with 43-58% higher long term support costs.

 

There are two MYTHS WE EXPOSE.

    

• The first MYTH is Higher Discounts lead to the lowest Net License. Review one of our most simple Client Case Studies from 2011 (1% of the methodologies we use) as an example of what we have delivered to each and every Client who has engaged us.  After your review, Contact Us for a 15 minute Webinar to see the two Applications this Client purchased and to learn exactly how we did accomplished what we did, why the Client was not aware of this, (and much more) including the knowledge of many more of the methods we employ except with deals that have 35 Application modules, Technology, and who need 100's or 1000's of different users, as well licensing for the entire employee population. Any preconceptions a Client had about the value of high discounts evaporate when show them how we do some of what we do. Also, we hope many Clients will likely recognize the method we employed, again, the Case Study we present was not Complex and easily accomplished. However, what we discuss and explain to Clients in person or in a discussion, is very different. The only methodology we never employ is to call a Client's Vendor and demand a higher discount. At this point a prospective new Client realizes what dozens have over the last 4.5 years and the value we bring at no risk is fully understood.

               

• The Second MYTH is the only solution to what I have heard Clients for almost a decade call their "worst OpEx nightmare" (constant yearly increases to Oracle® Long-Term Annual Maintenance & Support Renewals) and that in order to save 40-50% and stop the bleeding the only answer is Third Party Support. An End of Life (EOL) Client who does not intend to upgrade and requires perhaps only regulatory updates with a highly stable system and bulletproof DR could be a candidate for 3rd Party support, however, even under such a situation there is risk, depending on the situation. Under no circumstances should a large and growing Enterprise, University, or Government Agency move to third party support. They are placing their organization at risk.

 

• A Core failure, that requires one or many more Oracle® Proprietary Patches renders a 3rd Party support provider impotent in such a situation. If it does not, they are engaging in an illegal activity.

 

• It is not legally possible for any 3rd Party support provider to do anything except fix simple bugs, provide phone support, or create anything except regulatory updates. Patches for Oracle® Applications and Technology are Proprietary, Intellectual Property and even with stable companies with no interest in updating, fail to realize that a database security patch is also Oracle's intellectual property and can expose them to a security threat. Sure,there are ways to protect databases, but this is not the point, if the Company is not notified in time and a smart hacker is reading a success story about a business who left Oracle support, they will be scanning these companies minimize-risk for vulnerabilities. Any patches, or software that comes from Oracle and is used by a Third Party Support provider is illegal. For countless articles, conduct a search with the phrase "TomorrowNow + Oracle lawsuit." Or, visit this link and read about the final settlement made by SAP to Oracle: Routers - Oracle, SAP settle long-running TomorrowNow lawsuit. Sometimes it's wise to learn about Third Party Support Companies from the Ads run by competing Third Party support Companies.

 

Some will disagree and we certainly understand their motivation. At the same time, this change is motivated by a need to reduce support costs by an average of 50%. Why the needless risk, when 43-58% in support costs, at the time of purchase, can be reduced by us ahead of time, with dozens of our Clients averaging a cumulative $5.2MM in 20 year support cost reductions?

 

Clients get into these situations because "in our opinion" they have been conditioned over many years by Oracle® that high discounts lead to the lowest Net License price and in turn, the lowest first year support. In the end, and this is not an opinion, but a fact: High discounts on highly complex, large Oracle® ERP Investments do NOT provide the opportunity for the levels of deep cost cuts we deliver at No Financial Risk to Clients.

 

A Final Word in this matter: During my years at Oracle, two Enterprises (one with annual sales of $1.2B and the other with sales of $800MM) both had come to Oracle from JD Edwards and while I only saw this happen twice, I was one person. Both were using the now defunct TomorrowNow for 3rd Party support and both had serious Core failures to their ERP. Too much time was spent with threats by the customer directed towards TomorrowNow due to the timing and since this happened after Oracle® filed suit against SAP. The result: A total loss of 17,000 jobs and two thriving Businesses who were not able to recover by the time they tried to pay and reinstate Oracle support, both were forced into Chapter 7. This should never happen to a Client when it can be avoided from a Cost perspective by relieving the stranglehold of what prompted this Client to cancel support in the first place. Whether you become our Client or not. Don't risk your Organization to save money by going with 3rd Party support.

Why is your service at NO FINANCIAL RISK to a Client and how do your Fees work?

       

There is NO COST to engage ERP Solutions to analyze a Client's final and lowest "Committed," Net License and if through our intervention, your Vendor does NOT deliver what we call our "Service Provider's Final REDUCED EXECUTABLE Ordering Document" which reflects the minimum or lower savings we placed in writing in our Services Agreement, then a Client owes us no fee whatsoever.

 

This is the meaning of NO FINANCIAL RISK TO A CLIENT, however in over 4.5 years we have never once failed to deeply reduce a Client's lowest negotiated Net License, First year support, 5-Yr. TCO and long after 5 years, millions of dollars in support reduction.

 

Also, we provide services to our Clients no cost, which include obtaining a critical report of their entire purchase History. This determines if tcoanything a Client owns may be used to provide new products at no cost via a Migration, as well as a list of all CSIs, every product purchased and the existing support since they became an Oracle Client.

 

Many Clients realize after we obtain their procurement history and asset report, they are still paying support on older metrics within their own license sets (CSIs) they have not used for years and could have been terminated years ago. If we do find these types of supported products, which happens most of the times with long-time Oracle Clients, and is only one example of the Value Added Service we provide saving an additional $10,000 or $300,000+ is included at NO COST when a Client engages us. Learn more about our Value Added Services

 

Our fee is very simple and a win-win for our Clients. Take a simple example of reducing a $3MM deal to a $2MM deal and the 5 Year TCO for based on first year 22% of Net License First Year Support savings ($440K down to $220K x5) coming out to $1,100,000 (using flat support for this example) combined with the Net License reduction of $1,000,000 is a 5-Yr TCO savings of $2,100,000. Our fee is a sliding scale percentage of 30-60% of SAVINGS alone. Again, before our Services Agreement is signed, we place the minimum 5-Yr. TCO savings in writing and agree on the percentage of savings that will be our fee when we deliver.

 

The agreement was 35% of the $2.1MM we saved our Client, or $735,000 (35% of $2.1M).

 

1. The Client had already justified and committed to make the purchase at a Net License of $3MM + $440,000 in First Year Support, after negotiating a 70% discount on List.

 

2. We reduced the Net License to $2MM + $220,000 in First Year Support with a no approval needed blended discount, of 33%.

 

3. We saved the Client a total of $2.1MM in the 5-Yr. TCO (again, we have used Flat support for simplicity, in actuality, there would be yearly support increases).

 

4. A $2.1M savings with our $735,000 fee removed resulted in a 5 Yr. TCO savings to the Client of: $1,365,000 with our Fee paid by how much less the Client paid their Vendor and of course come out way ahead by $1,365,000.

 

5. Long after 5 years, again, using only Flat Support the result of a $220,000 yearly reduction to First year support between $3MM and $2MM over 20 years is $4,400,000 in support, combined with the initial $1MM Net License reduction totaled: $5,400,000 well past 5 Years.

 

The final is the most difficult question to answer, anyone is welcome to skip, since we DELIVER and have never failed. For anyone curious with more time to read:

 

How do we reduce Oracle Net Licenses, so deeply, after a Client already has already negotiated a very high discount on a large investment in Tier I ERP?

 

Put simply, a combination of working for Oracle many years, resulted in a deep focus and subsequent expertise in Oracle's Business Practices, Oracle Legal Policies, Every Oracle Pricing Metric, how Oracle's Approval Chain works, and how Oracle as a Company thinks about Closing Business and its obligation to stockholders, and forecasts. 

 

This knowledge cannot be accessed, or taught, because all five knowledge areas above exist in Silos at Oracle. No company, No Oracle employee, No Manager and NO Department head of any of the Five Silos, although each are highly skilled at what they do, were not hired to learn the complexities of anything other than what their responsibilities are.

 

Our Client Case Study is an excellent example of how a Client with a discount of 64%, after our intervention, ends up with a 20% mandated no approval discount, yet look at the results. While there can be some puzzled individuals at Oracle® when they first question the accuracy of such a change, the case study we used is easily recognized. The methodologies we employ with larger Clients and much more Complex ERP Investments, which, more often than not, leave a Client with added modules and more license user rights, at a lower cost and with a much lower discount, this is when Legal and Global Pricing are brought in, since Business Practices and Approvals cannot move forward until they are told how the deal can been structured in the manner in which is was. At that point, Approvals is not directed to Approve anything, since what we have done requires no Approval. What we have done cannot be refused, since technically it is available to any customer if they were to ask for it (and they are, we are advising them). Calibi Yau

One last note: None of this is intentional on the part of Oracle® or on the part of a Client's Oracle® Sale's Rep. Most Oracle® Sales Reps. fight hard approval battles on behalf of their Clients for high discounts. It is simply the way people are trained, they are made aware of policies over 2 months of initial training, by different department heads and some close friends still at Oracle, ask me how I do what I do. I have no problem explaining exactly what I did in a highly complex engagement. The replies from some of my best friends are "I see what I think you mean, but no one does this, how would you know X dept. would allow Y, even though I think what your saying exists?" (that's after the first sentence). At that point, explaining unification of Silos to a friend, who lead to more confusion and more to the point, it could never go anywhere, I instead always end the Conversation with a joke (but REAL) by saying: Let me ask you a theoretical question:

 

If your customer was a JD Edwards EnterpriseOne Client, small but growing, $220MM in sales, and they wanted to add 100 users of JDE E1 Financials, for which the List Price is $4,595 per user, $70 for 100 users of System Foundation and $225 for 100 users Core Tools, total list price comes to $489,000 + $107,580 support total: $686,500 List. Let's say you can manage an Approval of 50% and get a price for the Net License of $244,500 + $53,790 in first year support, or a total of: $298,290. Did you get a good deal for the Client for 100 users of Financials with that 50% discount, or would I get a better deal, with a no Approval 50% discount, add by adding Project Costing, something the Client needed, but was not budgeted for and for both my no approval Net License is: $100,550 + $22,121 in support, for a total of: $122,671? My friend shakes his head and says you're nuts and this is what I show Clients in a DEMO.

 

 

 

 

Again, a very simple Sample Case Study of what we do, will provide an example, however, when Clients see exactly how it is done in-person or on a 10 minute Webinar and also see what I described above to my friend, "HOW" we intend to lower the cost of what they already negotiated a very high discount no longer is a matter of interest to our Clients. This is why in over 4.5 years no Client who has spent the 10-15 minutes to see 10% of how we do what we do, has ever failed to engage us because they understand how what they are shown exactly how this can be applied to their highly discounted and large investment and we have yet to fail.

 

Feel free to Download a Copy of our Service Agreement and please download and review our NDA closely.  Also, please review the case study example of what we recently did for a Client and please Contact-Us Securely to learn more or call us at: 888-970-5222.

 

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