How we helped a large telecom company get a grip on their Oracle usage and successfully settle an Oracle audit

oracle audit licensing

When an audit letter doesn’t necessarily mean large costs

Company: Telecom company

Case: Oracle software compliance review & audit support

Cost avoidance: $ 50M exposure

A telecom company contracted us to help them get a clear overview of their Oracle usage across their IT environment to see if there would be any concerns on their compliance position, since Oracle had announced an audit. The company did not actively manage its licenses nor the usage over the past years and was concerned whether their Oracle DB, BI, Siebel and EBS deployments were still within the limitations of their license entitlements.

  • Products in scope: Oracle Database Products, Oracle BI, Siebel CRM & E-Business Suite
  • Internal IT infrastructure, managed locally by IT departments
  • Infrastructure: VMware environments on HP ProLiant machines, and stand-alone SUN Sparc servers
  • Physical & Virtual Servers: ±150

Our solution

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 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 DB and FMW products on large VMware environment
  • Deployment of unlicensed DB & FMW software mainly due to bundled installation packages vs. single product licenses
  • No User Management on their Siebel and EBS environment

We helped the customer to identify the DB options and packs that needed to be deinstalled, removing BI components they did not have licenses for and clean up their EBS and Siebel environment. In addition, we provided recommendations on how to set-up their VMware environment and advised them on negotiating a deal with Oracle.

Meanwhile we supported them in their discussions with Oracle on audit execution. Thanks to our analysis and remediation advise, we were able to reduce their $50M exposure and helped them negotiate a $2.1 M deal for new license purchases in the next 3 years. Based on this deal Oracle also agreed to stop the audit.

Business impact and results

Based on our reports and advice the customer was able to reduce a $ 50M spend on additional license purchases to just a little over $ 2M and avoid an Oracle audit.

Since the customer recognized our expert knowledge in the area of Oracle licensing, they have requested for extended advisory services to continue the remediation support and also provide advisory during an Oracle audit (e.g. to include the right contractual language to avoid further issues with VMware deployment).

We were afraid that having received the audit letter already meant that there’s nothing left to do. Luckily B-lay proved us wrong.