Australia Conference 2018_Boost up your oracle audit defence

The ITAM Review Australia Conference 2018
Oracle :
How to avoid and save costs?
Richard Spithoven

Richard Spithoven
Richard Spithoven
Managing Partner
Oracle LMS EMEA
2009 – 2013 Regional Director, Southern Europe
Oracle LMS EMEA
2005 – 2009 Principal Licensing Consultant
Email: richard.spithoven@b-lay.com
Tel: +31 6 10 40 66 19

Agenda
•  How to avoid costs?
•  Understanding your entitlement and deployment details.
•  How to save costs?
•  Understanding the different options you have.
•  What’s the solution?

How to avoid costs?

Our day to day practice
•  “My IT team says we are compliant”
•  “We are not using database options or database management packs”
•  “We bought the licenses that we needed once we started to use the software”
•  “Vendor is not going to audit us, we have a great relationship!”
•  “We have (or are going to buy) an Unlimited License Agreement, so we don’t have issues!”

Our day to day reality
Did you know that:
•  95% of end users are found non-compliant during an audit?
•  80% of end users pay support maintenance for licenses they don’t use?
•  in case you change your hardware infrastructure and/or you use virtualization technologies you
likely need to change your licensing model?
•  any installation of the software (in principle) requires you to license the software?
•  Oracle programs that you download include separate licensable software programs which
require you to license separately as well?
•  in case you make use of the “Data Pump” feature you proactively need to de-select it otherwise you are
required to license Advanced Compression?

Start of an Oracle LMS Engagement
Oracle LMS Oracle Sales Historical metrics,
purchase date,
etc.
Events like mergers &
acquisitions,
ULA Expiration
License Compliance Risk analysis
includes multiple parameters
ORACLE LICENSE MANAGEMENT SERVICES (LMS)

A closer look at Oracle’s Standard Audit Clause
Upon 45 days written notice, Oracle may audit your use of the programs. You agree to
cooperate with Oracle’s audit and provide reasonable assistance and access to
information. You agree to pay within 30 days of written notification any fees applicable to
your use of the programs in excess of your license rights. If you do not pay, Oracle can end
your technical support, licenses and/or this agreement. You agree that Oracle shall not
be responsible for any of your costs incurred in cooperating with the audit.

On the Certification Date (or Accelerated Certification Date (as defined below), if applicable), You
shall furnish Oracle with a certification signed by a C-level executive of Your company verifying
the quantity of Processors on which the Deployment Programs are installed and running by You
and the locations of each of the Related Companies by country where such Processors are
installed and running (with the numbers of Processors of each Program per country specified) as
of the date on which the Deployment Period ends (such certified quantity, the “Certified
Deployment”).
Notwithstanding the above, You may not include in the Certified Deployment any Processors
of the Deployment Programs installed and running in a public cloud. On the date the
Deployment Period ends Your quantity of licenses of the Deployment Programs above shall be
fixed and limited as set forth in the Certified Deployment. As part of the certification process under
this section, You agree to provide Oracle with such additional information and assistance
as may be reasonably requested by Oracle to validate the information contained in the
Certified Deployment.
A closer look at Oracle’s Standard ULA Certification Clause

Notification letter to your
CIO and/ or CFO
Oracle License review =
Oracle license audit!
Single point of contact
4. Contact2. Oracle License review
1. Notification Letter
Objective to determine compliance
issues ($) and cross /
upsell opportunities
3. Determine issues 5. Kickoff meeting
Kick off meeting or call

Execution of an Oracle LMS Engagement
20162015201420132012201120102009
License Entitlement Documents
SP1 PD11G BP
SR SR SR SR SR
SP2 PD12C
OF OLSA
SR

License Deployment & Usage Data Gathering
1. Hardware Discovery
Desktops & Laptops
Mobile Devices
Virtual Servers
•  VMware configuration details
•  Sun Solaris configuration details
•  IBM LPAR configuration details
•  Others
Physical Servers and its specifications
•  Server models
•  Number of CPU/Sockets
•  Number of Cores/CPU
•  CPU Type
•  Purchase dates of servers
Hardware Discovery
What hardware could have software installed?

2. Software Inventory
Software Inventory
What software is installed?
What software (component) is
installed?
Different ways of identification:
•  Fingerprints (executables, config
files, etc.)
•  Installer Evidences (Add/Remove
programs, Install path, Registry,
Oracle Universal Installer, etc.)
•  Running Processes
•  Used ports

3. Software Configuration
Software Configuration
How is the software configured?
•  What interfaces are set up?
•  Are these interfaces triggering
indirect usage?
•  Are certain software components
installed with other software
components?
•  Are certain software components
clustered with others?
•  What database environment is
making use of what middleware
environment?
•  What middleware environment is
being used by a specific
application?

4. Usage Determination
•  Which individuals are authorized
to make use of a specific
software program?
•  Which individuals are actively
using a specific software
program?
•  What type of usage is applicable
for the different individuals (e.g.
Professional, Limited
Professional License Type)
•  What database environment is
making use of what middleware
environment?
•  What middleware environment is
being used by which
application(s)?
•  What is the usage determined for
identified indirect usage
situations?
Software Usage
How is the software used?

5. Non-System Data
•  For the business purposes of
what specific legal entities are
the software programs being
used?
•  Are the software programs
being used to support the
business operations of third
parties (and as such require
hosting rights?)
•  What are the enterprise metrics
of your organization (e.g. no. of
employees, reported revenue)
•  Are the software programs
being used in a specific city,
country or region?
•  Others

Manual data gathering
& Analysis
Tooling / Scripts
ContractAnalysis
5. Non-System Data

Oracle Verified Tool Vendors: A fool with a tool stays a fool!

•  Tools verified to provide the required data set to supplement an LMS engagement:
Flexera Software, iQuate, Lime Software, Micro Focus (HPE), Nova Ratio, Aspera SmartCollect
•  Scope of the verification process only covers data collection related to the installation and usage of
specific Oracle Database products; Verification does not include any other Oracle products or the
overall capabilities of the vendor’s solution
•  LMS will accept data from any of these tools as an alternative to installing LMS measurement tools.
The installation and usage of a tool from a verified vendor does not replace an Oracle License Audit
or True Up engagement
•  The usage data gathered from these tools will still need to be analyzed to assess license needs

How to save costs?

How to save costs?
The majority of end users get a headache because of the following policy from Oracle
Pricing following Reduction of Licenses or Support Level
Pricing for support is based upon the level of support and the volume of licenses for which support
is ordered. In the event that a subset of licenses on a single order is terminated or if the level of
support is reduced, support for the remaining licenses on that license order will be priced at Oracle's list
price for support in effect at the time of termination or reduction minus the applicable standard
discount. Such support price will not exceed the previous support fees paid for both the remaining
licenses and the licenses being terminated or unsupported, and will not be reduced below the
previous support fees paid for the licenses continuing to be supported. If the license order from which
licenses are being terminated established a price hold for additional licenses, support for all of the
licenses ordered pursuant to the price hold will be priced at Oracle's list price for support in effect
at the time of reduction minus the applicable standard discount.

How to save costs?
What options are there then?
•  Cancel a complete order
•  Rebuy of used licenses
•  Renew the support maintenance for a longer period
•  Terminate a single license from your support maintenance contract
•  Migrate parts of your licenses into licenses with a different metric
•  Assign unused licenses to a different legal entity

How to save costs?
During your contract negotiations, think about a number of terms you would like to have to save costs:
•  Pricehold pricing?
•  Customer Definition for majority & minority owned subsidiaries?
•  Deploying Oracle on VMware or Public Cloud providers?
•  Divestiture grace periods?
•  Successor Products?
•  Assignment and migration rights?
•  Audit Clause (non standard)
•  Other?

What’s the solution?

What’s the solution?
HOW?
Proactive
Be pro-active and take
the control yourself.
Don’t wait until you get
audited by Oracle.
Regular internal reviews
Perform regular internal
license reviews.
Determine your license
compliance position.
Mitigate Risk
Mitigate financial operational
and legal risk and start saving costs!

Questions?

Further reading on B-lay.com
Oracle Database
An overview of the most common license compliance issues
Oracle License Review or License Audit
Answers to your Top 20 Questions
Oracle Authorized Cloud environments
How to license Oracle software on Amazon, Azure & others
Licensing Oracle software in VMware
Licensing Oracle software in VMware vCenter 6.0
Oracle software – how to save costs

Thank You

Australia Conference 2018_Boost up your oracle audit defence

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