Oracle Fusion Cloud: Service Level Credits

In today’s competitive business environment, controlling costs while ensuring service reliability is key to success. For organisations leveraging Oracle Fusion Cloud, understanding the Service Level Agreement (SLA) and the concept of Service Level Credits is essential.

Service Level Credits are a financial mechanism that can be included in Oracle Fusion Cloud’s agreement to ensure accountability and performance reliability. These credits act as compensation when Oracle fails to meet predefined service levels, such as uptime guarantees or performance metrics. For organisations, this translates directly into compensation when services fall short of expectations. This reinforces Oracle’s commitment to delivering a reliable and high-performing cloud environment.

How does it work?

• Eligibility: Service Level Credits are triggered when Oracle’s performance fails to meet the agreed performance metrics. By identifying and claiming these credits, organisations can offset their subscription costs.

• Calculation: The amount of credit is typically a percentage of the monthly subscription fee corresponding to the impacted service. For example, if a service was unavailable for a specified number of hours that exceeded the SLA’s downtime allowance, Oracle calculates the credit based on the formula described in the SLA, reducing future bills.

• Application: Approved Service Level Credits are applied to future billing cycles, lowering your organisation’s expenses.

Service Level Credits offer several advantages for organisations using Oracle Fusion Cloud.

• Budget protection: They act as a safeguard, ensuring that you aren’t paying full price for subpar service performance.

• Cost efficiency: By leveraging these credits, businesses can reduce their overall subscription costs

• Increased ROI: When you account for potential SLA breaches and the resulting credits, your investment in Oracle Fusion Cloud becomes more cost-effective

Consideration and best practices

Organisations are recommended to:

• Regularly review SLA terms: Ensure alignment between Oracle’s SLA commitments and your business’s financial priorities.

• Monitor performance metrics: Use Oracle’s reporting tools to track uptime, response times, and other key indicators, ensuring you’re aware of any breaches.

• Proactively engage: In the event of a suspected SLA breach, promptly notify Oracle within the allowed timeframe to secure your credits and reduce costs.

Conclusion

Oracle Fusion Cloud’s Service Level Credits can be included in your Fusion Cloud agreement to get compensation when cloud services do not meet the predefined performance metrics. By understanding and leveraging these credits, organisations can optimise their cloud investment, reduce risks, and foster a productive partnership with Oracle.