How we helped a retailer save costs on their Oracle shelfware licenses
Getting your affairs in order can save you large costs
Company: Company with over 20.000 employees in the retail industry
Case: The company was divested and left with Oracle licenses shelfware
Cost Savings: $200K in yearly support costs $330K fee for subscription costs
The company was divested by a large global retailer, that transferred also a lot of their Oracle shelfware licenses, leaving it with a big overpayment of Oracle support fees compared to their actual usage. As the licenses were not managed by the organization itself, we provided support to understand and assess their situation, so that they can make an informed decision regarding the shelfware licenses.
– Products in scope: Oracle Database, Fusion Middleware (Cloud), Business Intelligence, E-Business Suite, Siebel and Retail – Outsourced and in-house Datacenters
– SAM tools: Snow, Active Directory, SSCM, CMDB, ServiceNow, ILMT
– Infrastructure: Sun, OVM, Exadata
– Physical Servers: 1,000+
– Desktop/Laptops: 7,000+
In order to get their Oracle licensing sorted, the customer contracted us for a 3-year SAM Managed Service, which includes:
– Contract and license administration
– Compliance reporting
– Optimization advice
– Audit & negotiation support services
We started the engagement by analyzing their licenses and contracts to see what possibilities there were to lower the support costs, considering the matching license level and repricing policies that usually make it difficult for customers to lower their support costs after initial purchase (support lock).
We also executed a deployment and compliance analysis, so we could size the current shelfware, but also help the customer understand the further potential savings by optimizing their deployment.
Based on the outcomes of the analysis and applying our knowledge of the Oracle organization and approach, we provided solid advice on how to approach Oracle to get the best deal.
In addition to the above mentioned services, our customer also wanted to perform a Java Health Check for their Oracle Java applications. We did a risk assessment and provided our findings, based on which the customer decided to move the entire company to OpenJDK.
Business impact and results
Based on our reports and advice the customer created a contracting structure that allows them to avoid yearly support indexation of usually 3-4% and to reduce the support fee for licenses no longer needed, without repricing the remaining licenses. This alone saved them $200K in yearly support costs after the first year and allowed for further savings on their shelfware going forward.
Based on the results of our Java Health Check engagement and their decision to move to OpenJDK, the company was able to avoid a $330K fee for subscription costs.
The customer was so happy with our support on Oracle during the 3 years of the engagement, that they signed a new 3 year agreement, adding an extension of the scope by including IBM and Microsoft. This allowed us to further help them get in control of their software assets, avoid cost increases, as well as saving on their licensing cost.
“When our company was divested, we received a lot of Oracle shelfware licenses. Luckily B-lay knew what we should do with them and that saved us quite some costs”