An Oracle Master Agreement, commonly called an OMA, is a comprehensive contract that establishes the general terms and conditions governing the relationship between Oracle and its customers. It is an overarching agreement under which subsequent Oracle license and service orders are placed.
The OMA is designed to simplify and streamline the procurement process for Oracle products and services by defining key legal, financial, and operational parameters upfront.
This allows customers to place orders for specific products and services under the OMA without requiring extensive legal review and negotiation.
An Oracle Master Agreement typically includes several essential components:
1. Internal Business Use Only
The OMA stipulates that Oracle software can only be used for internal business purposes. For instance, this would not be allowed if you work at an energy company and you and four other energy companies decide to share one server and licenses.
The licenses are only for your company’s use. However, Oracle does allow agents, contractors, partners, and suppliers to use the software, meaning you don’t need a license for these users.
2. Trial Usage
The OMA provides terms for trial use of Oracle software. However, the terms are pretty restrictive, so it’s essential to understand them before downloading Oracle software for trial purposes.
3. Annual Support Costs
The OMA describes the annual support costs. Typically, Oracle support will increase by a few percentage points every year. The standard increase in most countries is 4-8%, but it can be as high as 10% in some parts of the world.
4. Vendor Lock-in Policies
The OMA contains policies that I refer to as vendor lock-in policies. For instance, the technical support policy states that you must have all licenses under support or nothing.
If you have multiple Oracle license agreements and one day decide not to pay maintenance on one of them, this would not be allowed per the Oracle Master Agreement.
5. Audit Clause
The audit clause in the OMA outlines how an audit is conducted, when, and by whom. Upon 45 days written notice, Oracle may audit your use of the software.
You agree to cooperate with Oracle’s audit and provide reasonable assistance and access to information. The audit should not unreasonably interfere with your normal business operations.
Entering into an Oracle Master Agreement offers several key benefits for customers:
While Oracle provides a standard OMA template, customers can negotiate specific terms and conditions to align with their unique business requirements.
Some key areas for negotiation may include:
What is the Oracle Master Agreement (OMA)?
The Oracle Master Agreement (OMA) is a foundational contract that sets the general terms and conditions for using Oracle products and services.
How does the OMA differ from other Oracle agreements?
The OMA is a broad agreement that serves as an umbrella for all subsequent Oracle transactions, unlike product-specific agreements like the Oracle License and Service Agreement (OLSA).
What are the key components of the OMA?
The OMA includes terms on intellectual property rights, limitations of liability, warranties, confidentiality, and dispute resolution.
Does the OMA cover all Oracle products?
Yes, the OMA provides the overarching legal framework, covering all Oracle products and services a customer may purchase.
Can the OMA be customized?
While the OMA sets standard terms, some aspects may be negotiated based on the customer’s needs.
How long does the OMA last?
The OMA remains in effect as long as the customer continues to use Oracle products or services, making it a long-term agreement.
What is the role of the OMA in subsequent purchases?
The OMA governs all future Oracle transactions, so new orders and licenses are covered by its terms without the need for renegotiation.
What happens if there’s a dispute under the OMA?
The OMA’s dispute resolution terms typically require mediation or arbitration before any legal proceedings and specify the jurisdiction for resolving disputes.
Are there any compliance requirements under the OMA?
Yes, customers must comply with Oracle’s licensing policies and other terms outlined in the OMA. Non-compliance can potentially lead to audits or penalties.
What are the consequences of breaching the OMA?
Breaching the OMA can result in legal action, termination of licenses, and potential financial penalties.
How does the OMA handle intellectual property rights?
The OMA confirms Oracle’s ownership of the software and outlines the customer’s responsibilities to protect Oracle’s intellectual property.
Is technical support covered under the OMA?
Technical support is not directly covered under the OMA but is often addressed in related agreements under the OMA’s umbrella.
Can the OMA be terminated?
The OMA includes clauses that allow termination under certain conditions, such as material breach or insolvency of either party.
What should be reviewed regularly in the OMA?
Customers should regularly review terms related to compliance, liability, and intellectual property rights to ensure ongoing adherence to the agreement.
Who should be involved in managing the OMA?
Legal, IT, procurement, and management teams should all be involved in managing and reviewing the OMA to ensure all aspects are covered and understood.
Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency. View all posts