Upgrade/Migration Costs

NameNotGiven

Member
Scenario:

I've inherited a JDE XE install that my company is looking to upgrade to 9.x.
We were originally World customers since 1994, in 2002(or so) we upgraded to XE. Right wrong or indifferent, we’ve paid our maintenance fee since the mid 90s without issue. Our contract in 2002 was upgraded to 100 concurrent users.

All of this was prior to my time here.

I’m now being asked to look at taking our company to 9.1, so we’ve talked to a couple Oracle partners and we’ve had a ton of discussion about licensing which has been needlessly insane. This has been going on for months while we’ve also been looking at some other ERP software more specific to our industry.

First, we were told by 2 different oracle partners 100% that 9.1 would no longer support concurrent users and we’d have to migrate to per user license and we’d have to pay for HR/Payroll/Time management on a per employee basis. After compiling the numbers and much haggling, the migration pricing came in slightly north of $500,000 plus raising our yearly maintenance nearly $60k per year. After weeks of talking with Oracle our partner etc, we decided to move away from JDE and look at alternatives.

Oracle and the partner have now significantly changed their tune once they found out we were done. They’ve agreed to a no cost upgrade, keeping our initial licensing intact. 100 Concurrent users and unlimited HR/Payroll/Time management users, the only cost for the software migration will be purchasing tech foundations, which was supposedly was not included in XE/8.0. The only caveat is we can’t purchase any additional or new licensing or any new features unless we agree to convert our entire licensing scheme over to the new format.

Is this typical? Any comments please?
Regards,
Name and detailed information held back.
 
I don't know if this is typical, but what you describe is pretty much our experience, though we never discussed (as far as I am aware), with any outside organisation, the possibly of going to the market.

In accord with your experience, we have not changed any details with regard to licensing. The same caveat applies to us - nothing new or we change to the new format with its significantly increased cost.

If both your organisation and mine experienced this, I doubt that we are the only ones - there is possibly a significant number who have experienced this.
 
Yes, we experienced the same bend over process.

If you fought hard and didn't add any new modules/features you "only" had to pay for Tech Foundation - which for us at the time the only added value was the web components.

If you also purchase new modules you can wheel and deal on the complete package price - which we did.
Be aware that if you currently "own" modules which you later want to drop from maintenance because you don't use them . . . this will also trigger a new license scenario.

Sounds like your company did a great job of not being bluffed. You may want to consider getting a hired gun to do your Oracle Negotiations for you - we thought about it, didn't, and afterwards wished we had. There's a company out there that specializes in negotiating software contracts/maintenance - don't remember their names but I believe they just take a cut of the money they'll save you.

Good Luck!
 
Yes - this is typical.

I've worked with multiple upgrades, with customers that have spent millions over the years on maintenance - and often they're faced with "you have to spend xx dollars to convert from concurrent to named user licensing".

The reality is that you don't need to convert - providing you accept the limitations of not being able to add any more concurrent licenses to your current stable. A while back, I mentioned on JDEList that Oracle was planning this - and there was a window where customers had the ability to "bump up" their concurrent licenses - but that window has long since passed.

So, the message is this.

1. If you're up to date with OneWorld maintenance, you can upgrade to the latest version of E1 software, gratis.

2. If you expand to additional functionality you hadn't originally purchased - you will need to purchase licenses

3. If you purchase any additional licenses, Oracle no longer supports the concurrent licensing model - so will convert whatever licenses you have to named users (using a formula) - and will then charge you for the difference

4. Technology Foundation (red stack) can be purchased separately. This is licensed under a "named user" licensing model. Alternatively, you have the ability to purchase the software bespoke - ie, Weblogic and/or Oracle DB etc - and sometimes its worth looking at the price on a named user basis and compare the two.

I work with many companies in setting the record straight. Remember, Oracle just wants to sell software - and the partner often wants a cut of any software sold - very rarely is there a partner really working on the behalf of the customer. Independent organizations (like mine) don't gain anything from selling additional software - and so our best interest is the same as the customers - but with the benefit of being able to work within the licensing model AND providing leverage for the customer.

Always be prepared to walk away from the dealership.....
 
Why is everyone surprise that a software company makes money by actually SELLING software?

Yes they would like to sell you more licensed modules and in order to do that you have to convert your licensing model.

The whole reason Peoplesoft bought JDE is because JDE wasn't doing so hot and simply because anyone could just discount it to nothing to make a deal. Atleast Oracle has better sense and has realized that it's a "for profit" model and is doign what they must to make money and stay afloat.

Yes as an alternative they have offered "the next best thing" to you so you're free to jump on it and take it or go look elsewhere.

Happy Capatalism


Colin
 
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