Blog series: Oracle Fusion Cloud Contract Optimisation

Following the success of our webinar on “Master Oracle Fusion Licence Challenges”, and to help you navigate non-standard terms in Oracle Fusion Cloud contracts, we’re excited to launch a dedicated blog series that dives even deeper into this complex and important topic.

During the webinar, we covered high-level strategies for managing Oracle Cloud contracts, highlighted common contractual pitfalls, and answered many of your questions about rebalancing clauses, licence compliance, and cost optimisation. Now, we’re taking it a step further.

This blog series will expand on the key points discussed in the webinar, providing in-depth analysis, practical examples, and actionable tips to help you make the most of your Oracle Fusion Cloud investment. If you’re looking to optimise your Oracle contract, understand nuanced contract clauses, or stay compliant while maximising flexibility, this series is for you.

With that in mind, this is Blog 1: Rebalancing

In any Oracle Fusion Cloud agreement, flexibility is paramount. Oracle offers a "rebalancing clause," enabling customers to reallocate users and usage quantities across different cloud services within the same functional suite, within a limited period, at no extra cost.

This offers real benefits:

• Enhanced flexibility: As organisations grow and change, the rebalancing clause allows adjustments without modifying the entire contract or purchasing new subscriptions.
• Cost efficiency: The rebalancing right enables cost control instead of negotiating new contracts or paying additional fees to add users to a different cloud subscription.
• Optimised resource utilisation: It helps to optimise cloud investments by adjusting usage allocations to match the changing needs of departments or teams. This reduces the risk of "shelfware" services.
• Future-proof contracting: Organisations can account for future changes in cloud resource requirements, making their investment more resilient to changes in scale or focus in both the short and longer term.

To make the most of rebalancing, follow these best practices.

• Evaluate future usage patterns: Assess changes in Fusion Cloud service demands on a regular basis. For instance, if you anticipate rapid growth in one area (HCM), make sure that the clause allows reallocation towards those needs without restrictions.
• Monitor usage regularly: Conduct complete and accurate periodic reviews of your cloud consumption. By identifying underutilised services or areas with increasing demand, make data-driven reallocation decisions.
• Negotiate reallocation flexibility: During contract discussions, clarify the frequency and process for reallocations. Aim for annual or semi-annual opportunities to align with changing business needs.
• Define reallocation metrics clearly: Ensure that the metrics for usage (users, data volume, transactions) are well-defined in the contract to avoid misunderstandings. This clarity will prevent disputes over what constitutes a “usage quantity” in the context of reallocation (e.g. authorised use vs active use of a cloud subscription.)
• Document adjustments: Maintain records of reallocation actions, detailing affected services and quantities. This supports compliance reviews, audits, and future negotiations.

SoftwareOne can help organisations maximise their software investments in this area by:

• Evaluating deployment and usage of on-premises Oracle applications.
• Determining your actual needs and consumption of Oracle Fusion Cloud services.
• Providing commercial negotiation support (contractual terms, benchmarking.)
• Monitoring Oracle Fusion Cloud consumption during and post implementation.