Large commercial organisations could now ask the software supplier for similar discounts, said Ronan Miles, chairman of the Oracle Users Group.
The OGC deal covers the Oracle 9i database and the Oracle 9i Application Server. Under the initial contract, licences were charged to the public sector only on a "named-user" basis.
The renegotiated deal offers the public sector a "per-processor" deal (subject to a minimum of 500 processors), while the minimum number of users on the "named-user" price model has fallen from 500 to 300. Oracle has also agreed to bundle a number of training services into the deal.
The new contract also means that the licensing discounts will be increased, although the figures remain confidential. The OGC is also renegotiating its spring 2002 agreement with Microsoft.