How you can outsmart license audits
Two examples of Oracle cases in which software asset management can save you millions
License audits can be very painful and costly. But here are two practical examples that show how you can save millions with thorough software asset management.
Of all the IT expenses, companies spend the biggest part of their budget on enterprise software, according to Gartner’s latest figures. The higher the software costs, the greater the financial risks. Software asset management (SAM) is therefore more important than ever – especially for large organizations. Proactive management of licenses, costs and use of software provides organizations millions. Let me illustrate this with two Oracle Database examples.
Closing a gap of 13 million euros
ftware. The license agreements date back to the ‘90s and over the years they had difficulty staying on top of all their contracts, license rights, and usage details. An internal audit proved again to be the answer, and the outcome also provided some surprising but, above all, much needed insights.
On the first hand, there was no license breach worth 260,000 euros, but no less than 1.7 million euros. This was – fortunately for the media company – not yet known by Oracle. If Oracle would have decided to conduct an audit, the organization would have had a major problem. Now, there was the opportunity to resolve compliance issues in the meantime, by reducing costs, including stopping unnecessary use of licenses. It even appeared unnecessary to purchase the above-mentioned additional licenses. That was a direct saving: if the company would have remained ignorant, it would probably have purchased the licenses. Additionally, 20 percent additional support costs could be saved, as many licenses were not used at all.
Strong starting position
Nothing is more annoying than explaining to the board how it happened that you’ve (again) exceeded your IT budget, because Oracle unexpectedly reported that you still owe them money. Nobody likes such unpleasant surprises, especially if they could have easily been prevented by better management. The above examples show how important it is to manage software licenses and their use structurally. The insight resulting from this gives your IT team a much stronger starting position, and this also applies to other vendors than Oracle. This insight prevents you from unknowingly buying unnecessary additional software or be confronted with a claim. Moreover, you can ensure that the audit letter actually never arrives and that you will be in the lead in future negotiations with your software vendor.
This article was published on 10-08-2017
Richard is one of the managing partners at B-lay. He started to work in the license management industry in 2004 and worked for almost 10 years at Oracle as regional director of compliance. He uses his knowledge of enterprise software vendors (such as Oracle, SAP, IBM and Microsoft) to educate, equip and enable software end users in their challenges regarding proper software license management. Richard holds a master’s degree in IT, from University of Amsterdam in the Netherlands.