How we supported an American logistics company throughout the commercial negotiations with Oracle
Asking for help – better late than never
Company: American logistics company
Case: Oracle audit and negotiations support services
Cost avoidance: 9M USD
When Oracle is auditing you, you might think that the report they create and the claims they have from you are always correct. It often happens that the software vendor claims customers to pay for programs for which they received a personalized offer in the past. For example, 15 years ago, when our customer in the logistics industry decided to choose Oracle’s E-Business Suite instead of SAP or SAS as their ERP system, they were told that they can use the Oracle Database Enterprise Edition and Internet Application Server Enterprise Edition products, Internet Developer Suite and Programmer licenses under their licensed E-Business Suite application, without any additional licenses. However, as a result of a recent audit, Oracle claimed licenses for the use of Oracle Database Enterprise Edition and Internet Application Server Enterprise Edition since the customer was breaching the “restricted use” rights granted. Although the audit report from Oracle was final, the company decided to hire us to support them throughout the commercial negotiation process.
When we received the request to help with the commercial negotiations, we knew we can’t do this without having a clear understanding of our customer’s situation. Knowing that Oracle sometimes claims more than needed, we had to see if that was applicable in our customer’s case as well. Therefore, we decided to start the engagement by performing a license entitlement analysis, license deployment & usage analysis, license compliance gap analysis and license remediation & optimization services.
Having the report from Oracle in a final form, we were limited to only understanding the current situation, without being able to change much in the outcome of the audit. That’s why our main focus was on supporting the customer with the commercial negotiation at Oracle.
Business impact and results
As a result of the contractual analysis performed and reviewing Oracle’s audit report it was clear that Oracle claimed licenses for the use of Oracle Database Enterprise Edition and Internet Application Server Enterprise Edition under the customer’s E-Business Suite environment. However, in the RFP from 15 years ago, Oracle responded that the customer did not require any other separate license than the obtained Oracle EBS licenses itself, to let the solution work.
With this document in hand, we were able to show Oracle that the customer always operated in good faith and that our customer never bought database or application server licenses for its Oracle EBS application.
In addition, the customer was making use of Oracle VM but its hosting party never “hard pinned” the virtual machines to a dedicated amount of cores. With our remediation and optimization services we were able to support the customer and the outsourcer to understand how to “pin” the virtual machines in order to reduce the required number of licenses.
Using our services saved the customer 9M USD, unnecessary and unplanned costs that could have went to Oracle, as a result of their initial claim. In addition, the completion of the audit would have probably taken more than 6 months whereas with our involvement it was finalized in 2 weeks. The relationship with the customer continues today as a managed service.
“Even if we were already in the middle of an Oracle audit, B-lay managed to help us save considerable costs. Happy we reached out. “