Software license management indicative of performance and responsibility

The myriad of software license types poses grand challenges to organizations. Proper license management is not only about the number of license seats for the application programs in use. Often, the moment that agreements were signed and under what conditions is extremely relevant as you may be able to further benefit from that.

The Oracle E-business Suite is no exeption and actually the state of software license management for core business processes can be considered indicative for overall performance. A sloppy business software license practice immediately weighs painfully on an organization’s financial bottom line, and it questions the adequacy of economic activity as well.

To support these observations and arguments, the free B-lay white paper Oracle E-business Suite Common License Compliance Issues sums up some important intricacies and challenges we encounter at customers on a daily basis. And by the way, since December 15, Technology Asset Management – of software assets also – is an integral part of the Sarbanes-Oxley legislation that organizations have to comply with. The rationale behind this upcoming legal compliance indeed is the relevance to overall business performance and in parallel organizations’ ethical responsibility to their shareholders and stakeholders in general. The more transparent business practices become, the more serious the risk of reputation damage and financial consequence on various levels will be.

One telling example from the white paper may serve to prove our points in case:

Next to Oracle E-Business Suite “Application User” licenses, an organization often will acquire “Application Read-Only User” licenses for solely running queries or reports against one or more of the E-Business Suite applications (e.g. Financials). Since read-only licenses provide fewer usage rights than the Application User licenses, they are cheaper. However, you must make sure that all read-only responsibilities and corresponding users are clearly identified. Organizations that fail to distinguish between different types of users will end up with all licenses being counted as “full use” Application User ones during an audit. Apart from this being a costly mistake, the organization is also exposed as lacking good employee role management, which could affect the business bottom line.

B-lay’s recommendation

Remember our motto, and act upon it: “make software compliance an exciting opportunity to improve your business.” We assure you that this imperative will pay of in many different ways.

This article was published on 03-03-2015