Oracle’s review process for Enterprise licensing
Carefully avoiding the term ‘audit’, Oracle instead tends to ask its customers to engage in a ‘license review’ or “license validation” or “license verification”. The Oracle License Management Services department (LMS) generally requests a customer to fill out a Server Worksheet, which is essentially an overview of the company’s Oracle deployments.
Based on the contractual clauses signed between Oracle and the end-user, an Oracle license review begins with a notification which is sent by Oracle’s LMS department, usually 90 days prior to the anniversary date of the contract. The original agreement specifies that a customer has to report the usage of Oracle products each year.
The reporting process involves the completion of a declaration form with the actual Revenue, Student or Employee numbers (depending on the metric). The declaration comes in the form of a report, used specifically for the purpose of obtaining the usage declaration. This also helps Oracle to keep track of historical usage declarations made by end-users.
The end-user has to fill out the declaration form according to the terms in the expansion clause, and by taking into consideration the metric definition and the territory for which the products are licensed to be used. The reported figures need to be filled out based on a company’s official records, annual report (for public companies), as stated in the end-user’s third party audit report or a third party accounting report.
Compliant or not?
Oracle’s LMS department will use the declaration form to establish whether or not the end-user is compliant with the agreement terms. In case of non-compliance Oracle will calculate the number of increments that need to be purchased and the associated fees. Usage reporting should be done either annually or whenever the licensed quantity is exceeded, depending on how the contractual clauses set this action.
Make sure you have the right expertise
You can of course invest in staff and building knowledge completely on your own to address the many software compliance issues you risk to face. But you might also want to consider enrolling in a fully operational license management program. This can be done in less than three months and will be tailored to the specific demands of your company.
If you are in need of extra expertise and a structured approach, feel free to contact B-lay. We will help you make software compliance an exciting opportunity to improve your business!
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.