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Oracle Insight: ITAA facilitates an annual saving in IT support costs equivalent to four nurses’ salaries for a pioneering hospital

Our client is one of the leading medical centers in the Netherlands. Staff, volunteers, and students place patient care at the forefront of their priorities at this cutting edge and visionary international hospital. The infirmary’s financial stability, research excellence, and commitment to innovation, combined with this patient-centric approach, position it as a prominent institution in healthcare.

In order for the hospital to be and remain so successful, strategic planning plays a key role, and everyone’s dedication drives their tactical decisions and operational excellence. Thus, our customer sought expert advice as soon as they recognized that redundant licenses, which could not be cancelled, were having a significant financial impact on Oracle support charges. Their goal was to redirect those funds to more impactful initiatives to benefit the greater good.

The Key Challenges

  • Cost Escalation

The hospital witnessed a consistent increase in Oracle support costs, impacting their budget allocation. As with many organisations, their deployment and utilization of Oracle products had declined over time, yet the associated support costs had continued to rise. Over the past two years the hospital had attempted to reduce these costs, but to no avail.

  • Vendor Complexity

The situation was exacerbated by Oracle’s complex policies, opaque explanations, frequent repricing, and inaccurate offers, all of which created unnecessary pressure during the renewal process. This lack of transparency and incomplete policy explanations hindered our client’s ability to negotiate effectively.

  • Compliance Uncertainty

The combined impact of these challenges left the medical center uncertain about their compliance status. As a result, the customer required assurance that they were in compliance with Oracle Agreement clauses both before and after the renewal and were still achieving cost savings.

The Solution

The hospital took proactive steps to tackle these challenges:

  • Expert Consultation:

The healthcare institution engaged industry experts, ITAA, to navigate Oracle’s complex landscape. Taking future needs into account, ITAA’s specialist consultants first established an Effective License Position (ELP) and quantified surplus, redundant licenses.

  • Negotiation Strategy:

ITAA actively managed the strategy and assumed a supporting role by steering communication with Oracle. During this process clarity was provided on policy, guidelines, timelines, and areas where Oracle had omitted information. Armed with these expert insights, both the hospital and ITAA were able to develop a robust negotiation strategy.

  • Added Value

ITAA then initiated a review of the procurement and contract management. Drawing from multiple sources, our expert team established a license grant and presented a comprehensive cost reduction strategy to Oracle. Despite Oracle’s initial inaccurate offers and pressure tactics, ITAA advocated for the customer, insisting on a correct offer that adhered to Oracle’s policies and was meticulously calculated by ITAA. As a result, the hospital achieved substantial savings which they were delighted to be able to redirect toward critical healthcare needs.

The Outcome

The objective of strategically optimizing costs whilst maintaining essential services and prioritizing patient well-being was successfully accomplished. As a result, ITAA achieved yearly savings equivalent to over four annual nurse salaries.

By levelling the playing field, ITAA ensured that both the client and Oracle were operating on equal terms, addressing any disparities, and enabling an equitable negotiation platform. In so doing ITAA also ensured compliance, before, during and after renewal and the cost reduction exercise. Furthermore, ITAA operates on a performance-based fee structure, directly tied to cost savings, thus no additional budget allocation was necessary.

In summary, the medical center’s proactive approach and collaboration with specialists, who strategically negotiated on their behalf, yielded positive outcomes. By engaging experts, the hospital aimed to strike a balance between efficient financial management and the delivery of high-quality patient care. The collaborative effort sought to align technology expenditures with the organization’s mission and strategic priorities. The healthcare institution now stands better equipped to manage Oracle support costs effectively, ensuring optimal resource utilization for patient care and community well-being.

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