�ݺ�ߣ

Class 6: Oracle License Management
License Audit Defense Training

Follow us on Linkedin Follow us on YouTube
www.linkedin.com/company/oraclelicenseexpert/ www.youtube.com/c/redresscompliance.com/

Best Practices
BEFORE AFTER
AUDIT
BE READY
CREATE audit response team Gain experience and quick reaction times
DEFINE audit policy, process steps and
allocate responsibilities
Know what to expect and who to turn to.
CREATE your own audit process, with
timelines
Be ready to control the audit and auditor
PREPARE NDA templates
Specific NDA for audit, co-op with legal
department
CENTRALISE all purchasing and
licensing documentation
Easy access to the information
MAKE internal license review Reduce risk, cost avoidance

BEFORE AFTER
AUDIT
Delay Tactics
If not ready, DELAY
We are in the middle of an IT roll-out. Officially, client should have 45 days
written notice. This can be interpreted as 45
days between audit notification (letter) and the
initial kick-off meeting.
Oracle might ask for a meeting before that
time is past. There are multiple ways to delay
this meeting (some indicated in previous
column).
NO ACTUAL RISK IN DELAYING.
Advantage in not delaying: “We are in control
of our Oracle licenses”
We’ll need to wait for legal department
feedback
This is the 3rd/4th audit this quarter…
Before meeting, we would like our NDA
to be signed
Person responsible is not available due
to…

BEFORE AFTER
AUDIT
Best Practices
Understand
your rights
Audit clause in the contract? Audit clause part of the License agreement
Full license entitlement
Licenses, customer definition, territory in
Oracle ordering document
Customized clauses in the contracts?
Knowing usage limitations, licensing
deviations negotiated. Auditor might take
standards as base for audit
45 days written notice You can reply to Oracle on day 45
The audit will not unreasonably
interfere with your business operations.
Are busy with something else?

Best Practices
BEFORE AFTER
AUDIT
NDA
You CAN negotiate the scope Limiting geographical, products
Clearly describe the scope at
the start
So Oracle cannot state later… ‘we found another
product’
Product scope
Get a license entitlement list from the auditor, verify
against internal data and the agreed limitations
Agree on audit approach
• Which steps?
• Which data? How is this collected? By whom?
• How much effort required from your side?
Start of the audit
SCOPE

Best Practices
Appoint a Single Point of Contact Spokesperson towards Oracle from that point on
Absolutely NO other communication
Nobody else speaks to Oracle (exception urgent
support calls)
SPOC
BEFORE AFTER
AUDIT
Start of the audit

Exercise
Your sales rep sends you an
email asking you to fill in an
OSW do you need to comply?
Answer:
A. Yes, vendor has the right to ask.
?
?
?
B. No, only contractual obligation is to comply with
a formal audit notification.

Exercise
Which time of year are
most Oracle audits
initiated?
Answer:
A. Feb-May.
?
?
?
B. In Oracle first 6 months (FY) – June-Dec.
So that they can close revenue in their FY.

Exercise
What should you negotiate with
Oracle before the audit start?
Answer:
A. NDA.
?
?
?
B. NDA and scope of audit.

Exercise
Why do you want to
delay the audit kick off?
Answer:
A. Review any compliance issues.
?
?
?
B. Because you are going to invest more in
Oracle.

Exercise
Why should you have one
designated SPOC during audit?
Answer:
A. To control the information flow, in order to make
sure correct information is shared with Oracle.
?
?
?
B. You can have a team who all share information
to Oracle.

What does
ORACLE COMPLINCE POLICY state?

Oracle Compliance Policy
Getting to License Compliance
If Oracle Corporation identifies a license violation, it will provide
written notification of the violation to the noncompliant organization
and generally will allow thirty days for obtaining the appropriate
licenses or otherwise correcting the violation. Oracle LMS and the
commercial team will assist the customer or partner in obtaining the
appropriate licenses for the desired use of the Oracle software programs.
The license compliance shortfall may be corrected in one of the following
ways:
• Through the purchase of sufficient licenses and associated support to cover the
compliance shortfall. Backdated support may also be assessed for the period of
unlicensed usage.
• If the customer removes the Oracle software, or reconfigures their hardware
environment, a term license and associated support can be purchased to
cover the period of unlicensed usage.
30
DAYS

Oracle Compliance Policy
Oracle endeavours to resolve license compliance violations in a fair and accurate
manner.
If a business resolution cannot be obtained, the resolution will be escalated to the appropriate authority through
Oracle's Legal department. Remedies open to Oracle include, but are not limited, to:
Source: https://www.oracle.com/corporate/license-management-services/compliance.html
Charging full
list price
for additional
software licenses
required to correct
the license
violation
Charging
technical
support fees
for the period of
unlicensed use
of the software
Suspension of
technical
support service
and software
updates, where
applicable
Termination of
the license
agreement
and associated
licenses
Cancellation
of OPN
status
and
sublicense
rights

What you need to know about the audit report.
Review the script analysis (often finding mistakes)
Oracle always propose perpetual license
when you can license with term
Oracle always proposes worst case
license model, never the most optimal.
(CPU and not NUP)
Never agree to the findings, unless you have done a
proper review and are ready to sign a deal

Best practices negotiate audit settlements
Understand what amount Oracle are willing to accept to drop changes
Benchmark your settlement offer
Our scale:
Product missing / gaps
Contractual non-compliance
Policy violation (eg. VMware)
Get a second opinion of the audit report
Understand the severity of the audit charges
Determine how “severe” your non-compliance is
OUR ADVICE

Sales rep has 100% mandate to negotiate whatever resolution
he/she thinks is appropriately. There is little management
control over the process. You are dealing with 1 sales rep and
often the managers don’t know what is happening.
10 steps to close an Oracle License Audit:
06
Sales rep often wants to be
the “good guy” but they have
been often the person who
started the audit.
08
However, it’s a sales and they
know from colleagues at Oracle
what is worst case and what is
best case.
07
Sales rep meet and negotiate,
they often ask for incredible
amounts. They know they will
never get this amount.
02
Shares report with
sales rep and internal
discussion on findings.
03
Oracle LMS sends out
the report to the
customer with sales
reps on cc.
04
05
Sales rep usually after
a week or two contact
customer to find a
resolution.
01
Oracle LMS
finishes report.
10
Oracle LMS is only involved to
make sure you are compliant
after the audit is closed.
09
When a negotiation is done with the sales rep he/she
has the right to void almost anything for whatever
amount. And you can purchase anything to resolve the
shortfall not only the products that you are missing.

Exercise
Should you review the
script analysis done by
Oracle?
Answer:
A. No, it’s a waste of time.
?
?
?
B. Yes, because this is done by manual work and
when done manually, mistakes can happen.

Exercise
How often are Oracle LMS
reports incorrect?
Answer:
A. In almost every case.
?
?
?
B. Rarely.

Exercise
How are Oracle LMS
reports incorrect?
Answer:
A. Only License findings (analysis).
?
?
?
B. License findings and they assume worst case
license model.

Exercise
What should be your first step
when reviewing the report?
Answer:
A. Confirm you have the report and agree to
its findings.
?
?
?
B. Don’t agree with any findings and
review licensing.

Exercise
If you confirm Oracle
analysis is correct
(license gap),
how can you minimize risk?
Answer:
A. Review usage (time and quantity of usage).
?
?
?
B. Negotiate a good discount.

Exercise
Which license model does
Oracle LMS always propose
settling any license gaps?
Answer:
A. Oracle proposes perpetual licenses
when you can license by TERM.
?
?
?
B. They propose CPU Licensing when you
can license with NUP.

Exercise
When negotiating the audit
report, who at Oracle has
mandate/power to settle?
Answer:
A. Oracle Sales.
?
?
?
B. Oracle LMS.

Exercise
Reviewing different
“compliance-issues” which
most difficult negotiate?
Answer:
A. Virtualisation.
?
?
?
B. Missing products or counting CPU
incorrectly.

Exercise
Why is Oracle licensing
with VMware scary?
Answer:
A. You need to license all physical
hosts – hundreds or thousands of physical cores
when you only use single digits for Oracle.
?
?
?
B. Oracle always proposes CPU licensing and
perpetual licensing.

Exercise
What is the best way to reduce
fees due to VMware?
Answer:
A. SIGN A ULA.
?
?
?
B. Oracle can only prove 1 year licensing.
Buy 1 year term – 80% license fee go down.
Then license with NUP and you reduce by
additional 50%.
€

5 COMMON COMPLIANCE ISSUES
and how to deal with them

MISSING LICENSES users,
named user plus, processor or
anything else.
What you should do:
1. Confirm that all information is correct.
2. Oracle have assumed worst case licensing,
so explore other low cost license models.
3. Can you license with term licensing and
reconfigure?
SCENARIO
1
ORACLE WILL TO NEGOTIATE:
LITTLE TO NONE

Oracle claims usage of non-licensed
software.
What you should do:
1. How many times you have used this software?
2. Depending on how many times you have used
the software, there is room for negotiation.
3. Verify that Oracle is correct about this.
4. Confirm if you need software or not. If you don’t
need it, buy term usage and uninstall.
SCENARIO
2
SMALL
This can be database options usage or that you have used a feature that is outside
of what licenses you own. This can be that you have used a product a few times to hundred times.
The difference in usage is very important.

You are compliant with all your products,
but Oracle claims contractually you are
not. It can be errors such as customer
definition, territory or other limited use:
What you should do:
1. Verify contracts to make sure Oracle is correct.
2. How important is the contract to you? Oracle
will claim you need to purchase and if you care
about contracts you will need to amend and pay.
3. Some companies are not forced to pay for
this, while others are (how hard they fight back).
SCENARIO
3
STRONG

You are compliant when you count
processors and users, but you had a
“limited use” restriction in your contract.
Oracle now says I have a license gap.
What you should do:
1. Verify contracts to make sure Oracle is
correct.
2. How long has the compliance issue
existed? 1 year?
3. If it is 1 year, then you can ask Oracle to
buy a 1-year license at 80% lower price.
SCENARIO
4
STRONG

We have used DB packs on SE DB,
Oracle now claims we need EE licensing
What you should do:
1. Understand if the usage happened within a specific time
period.
2. If it’s a 1 year period, purchase 1-year license (80%),
then solve audit.
3. What you negotiate here is the discount and the term of
the licensing.
SCENARIO
5
SMALL

Closing the audit
Make sure you get audit close letter when you
make any commercial deal if needed.
Negotiate a waiver for new audit for 2-
3 years
CLOSE

Exercise
You have an audit. If you only
check one thing on licensing,
what should you check? (Tech)
Answer:
A. Check for deployments on VMware.
?
?
?
B. Check database options licensing.

Exercise
You have an audit. If you only
check one thing on licensing,
what should you check?
(Contracts)
Answer:
A. Technical Support.
?
?
?
B. Customer definition, territory and
limited use clauses.

�ݺ�ߣ

Class 6 - Audit Defense (2 of 2).pdf

More Related Content

Class 6 - Audit Defense (2 of 2).pdf