Policy Alteration Regarding Enhancements and Maintenance
In the realm of software licensing, perpetual license holders may find themselves needing to purchase a new license or subscription due to certain circumstances. This article aims to clarify these situations and provide useful information for those affected.
Firstly, it's essential to understand that a perpetual license will continue to function even if the Upgrade and Support contract expires. However, access to the latest version of the products is restricted without an active Upgrade and Support contract. If a holder's Upgrade and Support contract has been canceled, a new license or subscription will be required to regain access to the latest versions.
The policy for renewing Upgrade and Support contracts typically includes annual renewal fees, calculated as a percentage of the license fee. The renewal pricing for perpetual licenses is usually around 22% of the yearly license list price. This fee covers access to patches, updates, new versions, and technical assistance.
It's worth noting that some vendors offer a grace period after the maintenance/support expiration, during which renewal can occur without penalty. For example, a 15-day grace period is common for renewals without penalty. After this period, late fees may start to apply, gradually increasing the longer renewal is delayed.
If support lapses, reinstatement may require paying a fee above the standard rate. For instance, Oracle charges a reinstatement fee equal to 150% of the last annual technical support fee if support lapsed, or 150% of the then-current support fee if support was never purchased.
Cancellation of Upgrade and Support contracts requires advance notice to avoid auto-renewal charges. Mid-year cancellations often do not receive refunds. If maintenance/support is canceled but not yet expired, some vendors allow reinstatement before expiration; otherwise, access to updates and support is lost.
Oracle has a policy that all licenses of a program under one contract must share the same support level. You cannot support only a subset of licenses without terminating others.
Expired Upgrade and Support contracts that are not reinstated will be subject to Upgrade and Support Reinstatement pricing. As of June 1, 2022, perpetual license holders can only renew their Upgrade and Support contracts with standard renewal pricing. Canceled Upgrade and Support contracts will no longer be eligible for reinstatement.
For questions regarding the requirement for a new license or subscription for perpetual license holders with canceled Upgrade and Support contracts, account managers and the sales team are available to provide further information and assistance.
In summary, perpetual license holders need to be aware that if their Upgrade and Support contract is canceled, they will need to purchase a new license or subscription to access the latest version of the products. The renewal pricing applies at the contract expiration date, and some vendors offer a grace period for renewals without penalty. If support lapses, reinstatement fees of approximately 150% of the annual fee may apply, and late fees increase the longer renewal is delayed. Cancellation requires advance notice to avoid auto-renewal charges and refunds are usually not offered for mid-year cancellations.
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