How we helped a Dutch hospital first avoid and then save costs on their Oracle licenses
The importance of knowing your compliance position
Company: University Medical Centre
Case: Oracle software compliance review
Cost avoidance: $ 2M exposure
Cost Savings: $ 40K YoY (=20% of annual support budget)
A Dutch hospital contracted us to help them get a clear overview of their Oracle usage across their IT environment and determine their compliance position. Since Oracle had conducted audits at other hospitals where some major license compliance issues were found, they were worried that the same would happen to them. The hospital just recently took over some research activities and the associated (Oracle) applications from another hospital and their infrastructure was on VMware, which they heard also could cause trouble.
After the initial successful run, they came back for another run, this time to look into cost saving opportunities, again with a positive outcome.
- Products in scope: Oracle Database Products, Oracle IAS, Oracle BI & Peoplesoft, Oracle Clinical
- Internal IT infrastructure managed locally by IT departments
- Infrastructure: VMware environments
- Physical & Virtual Servers: ±50
In order to obtain clarity about their Oracle licensing situation, we completed an Oracle License Compliance assessment, which includes:
- Contract and license administration
- Compliance reporting
- Optimization & remediation advice
We started the first engagement by analyzing their licenses and contracts to determine what entitlements they have and if any custom conditions or metrics should be taken into account when analyzing the deployment data.
We then executed a deployment and compliance analysis. In this way we identified the main areas of concern:
- Deployment of Oracle FMW products on VMware environment
- Standard Edition 2 deployment without appropriate licenses
- PeopleSoft enterprise metric violation
We also advised on how to migrate their SE(1) licenses to SE2. They needed to purchase additional enterprise licenses only for Peoplesoft since this was linked to the growth of the hospital staff. Thanks to these follow up actions we were able to reduce their $ 2M exposure to zero.
Based on the success of the first engagement, the hospital came back the next year for a second one. Because they now had a better view on their actual usage, they felt confident to seek opportunities for cost savings even from their current license portfolio. We went through the same steps as in the first run, but now with an additional deep dive into the separate contracts they own to see if they could be terminated or at least from the unused licenses they could save the yearly indexation applied by Oracle. This run was also concluded successfully, as we validated they could stop 3 support orders worth $ 40K in yearly support costs, which is about 20% saving on their yearly Oracle license spend.
Business impact and results
Based on our reports and advice the customer was able to avoid a $ 2M spend on additional license purchases and save $ 40K in annual support costs.
“An audit is always costly; time and money are invested and potentially more money needs to be invested as a result of the audit. We understood it’s important to be prepared and B-lay helped us achieve compliance before an audit started.”