How we helped a company in the automotive industry save costs and negotiate a better deal with Oracle
How an Oracle compliance assessment can save you money
Case: Oracle Software Compliance Review
Cost avoidance: $ 13M
Cost Savings: $ 12M
After a recent acquisition, a company in the automotive industry contacted us to support them with their Oracle licensing situation, as they were planning to expand their estate. The customer got worried, since Oracle started to knock at their door demanding to purchase more licenses and associated support fees as a result of the acquisition.
- Product Scope: Oracle E-Business Suite, Database and Middleware
Oracle claimed an additional net license investment of $ 12M to expand the number of E-Business Suite licenses. The customer did not get any clear justification from Oracle on why they would need to spend another $ 12M and as such reached out to us for support.
We recommended to perform an internal compliance review first, in order to understand the current license compliance position. Based on this, we could determine if there were still licenses on the shelf that could be used (partially or fully) to cover the additional demand from Oracle or how many new licenses would need to be purchased (if there would not be any surplus licenses).
Our Oracle compliance review service included the execution of a complete and accurate license entitlement analysis, license deployment & usage analysis, license compliance gap analysis, optimization and remediation services.
Upon the completion of the compliance review, a financial exposure of $13,3M was identified. The customer was shocked because Oracle claimed $ 12M and we found even a higher non-compliance. A large amount of the compliance issues were however the result of the customer not having a clear view on how the licensing rules for Oracle Database, Middleware and E-Business Suite should actually be applied.
We supported the customer by restructuring their infrastructure and by consolidating the different Database and Application server instances to a limited amount of servers. By doing do, the license requirements reduced drastically. At the same time, we supported the customer to reduce their non-compliance for E-Business Suite. This was done by disabling the user accounts of specific individuals that no longer needed to have access to those specific modules and by end-dating specific E-Business suite responsibilities that were no longer required (since individuals changed roles within the organization).
Business impact and results
Once that clean-up actions were done, we assisted the customer to negotiate a new deal with Oracle for the licenses that they needed after they optimized their infrastructure. The total amount spent on the new deal was $ 260K plus 22% technical support in order to solve their non-compliance and to obtain sufficient licenses for the acquired company.
“We were in a difficult situation and contacting B-lay was the best decision for us. If we’d have tried to solve this without their help, we would have spent a lot of money on licenses that we don’t even use.”
This article was published on 31-08-2020