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Demystify Oracle Licensing and Optimize Spend

Overspending with Oracle is easier than you think, thanks to the open access framework coupled with complexity of licensing.

  • License keys are not needed with optional features accessible upon install. Conducting quarterly checks of the Oracle environment is critical because if products or features are installed, even if they are not actively in use, it constitutes use by Oracle and requires a license.
  • Ambiguous license models and definitions abound: terminology and licensing rules can be vague, making it difficult to purchase licensing even with the best of intentions to keep compliant.
  • Oracle has aggressively started to force new Oracle License and Service Agreements (OLSA) on customers that slightly modify language and remove pre-existing allowances to tilt the contract terms in Oracle's favor.

Our Advice

Critical Insight

  • Focus on needs first. Conduct a thorough requirements assessment and document the results. Well-documented license needs will be your core asset in navigating Oracle licensing and negotiating your agreement.
  • Communicate effectively. Be aware that Oracle will reach out to employees at your organization at various levels. Having your executives on the same page will help send a strong message.
  • Manage the relationship. If Oracle is managing you, there is a high probability you are over paying or providing information that may result in an audit.

Impact and Result

  • Conducting business with Oracle is not typical compared to other vendors. To emerge successfully from a commercial transaction with Oracle, customers must learn the "Oracle way" of conducting business, which includes a best-in-class sales structure, highly unique contracts and license use policies, and a hyper-aggressive compliance function.
  • Map out the process of how to negotiate from a position of strength, examining terms and conditions, discount percentages, and agreement pitfalls.
  • Develop a strategy that leverages and utilizes an experienced Oracle DBA to gather accurate information, and then optimizes it to mitigate and meet the top challenges.

Demystify Oracle Licensing and Optimize Spend

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you need to understand and document your Oracle licensing strategy, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

1. Establish licensing requirements

Begin your proactive Oracle licensing journey by understanding which information to gather and assessing the current state and gaps.

2. Evaluate licensing options

Review current licensing models and determine which licensing models will most appropriately fit your environment.

3. Evaluate agreement options

Review Oracle’s contract types and assess which best fit the organization’s licensing needs.


Member Testimonials

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.

9.8/10


Overall Impact

$24,094


Average $ Saved

11


Average Days Saved

Client

Experience

Impact

$ Saved

Days Saved

MCAP Service Corporation

Guided Implementation

10/10

$50,000

20

Hastings Mutual Insurance Co

Guided Implementation

10/10

$123K

5

Wisconsin Compensation Rating Bureau

Guided Implementation

10/10

$247K

5

California Department of Industrial Relations

Guided Implementation

10/10

N/A

N/A

ATI CORP

Guided Implementation

10/10

$120K

10

Trinidad and Tobago Unit Trust Corporation

Guided Implementation

9/10

N/A

N/A

Government of Cayman Islands

Guided Implementation

8/10

N/A

5

London Health Sciences Centre and St. Joseph’s Health Care, London

Guided Implementation

10/10

$55,000

5

California Department of Industrial Relations

Guided Implementation

10/10

N/A

N/A

Oman LNG L.L.C.

Guided Implementation

10/10

N/A

N/A


Onsite Workshop: Demystify Oracle Licensing and Optimize Spend

Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Establish Licensing Requirements

The Purpose

  • Assess current state and align goals; review business feedback
  • Interview key stakeholders to define business objectives and drivers

Key Benefits Achieved

  • Have a baseline for requirements
  • Assess the current state
  • Determine licensing position
  • Examine cloud options

Activities

Outputs

1.1

Gather software licensing data

  • Copy of your Oracle License Statement
1.2

Conduct a software inventory

  • Software inventory report from software asset management (SAM) tool
1.3

Perform manual checks

1.4

Reconcile licenses

  • Oracle Database Inventory Tool
1.5

Create your Oracle licensing team

  • RASCI Chart
1.6

Meet with stakeholders to discuss the licensing position, cloud offerings, and budget allocation

  • Oracle Licensing Effective License Position (ELP) Template
  • Oracle Licensing Purchase Reference Guide

Module 2: Evaluate Licensing Options

The Purpose

  • Review licensing options
  • Review licensing rules

Key Benefits Achieved

  • Understand how licensing works
  • Determine if you need software assurance
  • Discuss licensing rules, application to current environment.
  • Examine cloud licensing
  • Understand the importance of documenting changes
  • Meet with desktop product owners to determine product strategies

Activities

Outputs

2.1

Review full, limited, restricted, and AST use licenses

2.2

Calculate license costs

  • Oracle TCO Calculator
2.3

Determine which database platform to use

2.4

Evaluate moving to the cloud

2.5

Examine disaster recovery strategies

2.6

Understand purchasing support

2.7

Meet with stakeholders to discuss the licensing position, cloud offerings, and budget allocation

  • Oracle Licensing Purchase Reference Guide

Module 3: Evaluate Agreement Options

The Purpose

  • Review contract option types
  • Review vendors

Key Benefits Achieved

  • Understand why a type of contract is best for you
  • Determine if ULA or term agreement is best
  • The benefits of other types and when you should change

Activities

Outputs

3.1

Prepare to sign or renew your ULA

3.2

Decide on an agreement type that nets the maximum benefit

  • Type of contract to be used
  • Oracle TCO Calculator
  • Oracle Licensing Purchase Reference Guide

Module 4: Purchase and Manage Licenses

The Purpose

  • Finalize the contract
  • Prepare negotiation points
  • Discuss license management
  • Evaluate and develop a roadmap for future licensing

Key Benefits Achieved

  • Negotiation strategies
  • Licensing management
  • Introduction of SAM
  • Leverage the work done on Oracle licensing to get started on SAM

Activities

Outputs

4.1

Control the flow of communication terms and conditions

  • Controlled Vendor Communications Letter
  • Vendor Communication Management Plan
4.2

Use Info-Tech’s readiness assessment in preparation for the audit

  • Oracle Terms & Conditions Evaluation Tool
4.3

Assign the right people to manage the environment

  • RASCI Chart
4.4

Meet with stakeholders to discuss the licensing position, cloud offerings, and budget allocation

  • Oracle Licensing Purchase Reference Guide

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

Member Rating

9.8/10
Overall Impact

$24,094
Average $ Saved

11
Average Days Saved

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve.

Read what our members are saying

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

Need Extra Help?
Try Our Guided Implementations

Get the help you need in this 4-phase advisory process. You'll receive 11 touchpoints with our researchers, all included in your membership.

Guided Implementation #1 - Establish licensing requirements
  • Call #1 - Engage in a scoping call
  • Call #2 - Assess the current state
  • Call #3 - Determine licensing position

Guided Implementation #2 - Evaluate licensing options
  • Call #1 - Review product options
  • Call #2 - Review licensing rules

Guided Implementation #3 - Evaluate agreement options
  • Call #1 - Review contract option types
  • Call #2 - Review vendors

Guided Implementation #4 - Purchase and manage licenses
  • Call #1 - Determine negotiation points
  • Call #2 - Finalize the contract
  • Call #3 - Discuss license management
  • Call #4 - Evaluate and develop a roadmap for future licensing

Author(s)

Scott Bickley

Contributors

  • Imran Shaikh, Program Director – IT at Vista Equity Partners
  • Richard Spithoven, Partner at b.lay
  • Max Ablimit, Tarim Consulting, LLC
  • Eric Chiu, Director at Fisher IT Asset Consulting

Search Code: 80106
Published: March 16, 2016
Last Revised: September 13, 2016

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