- 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 Research & Tools
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.Besides the small introduction, subscribers and consulting clients within this management domain have access to:
- Demystify Oracle Licensing and Optimize Spend – Phases 1-4
1. Establish licensing requirements
Begin your proactive Oracle licensing journey by understanding which information to gather and assessing the current state and gaps.
- Demystify Oracle Licensing and Optimize Spend – Phase 1: Establish Licensing Requirements
- Oracle Licensing Purchase Reference Guide
- Oracle Database Inventory Tool
- Effective Licensing Position Tool
- RASCI Chart
2. Evaluate licensing options
Review current licensing models and determine which licensing models will most appropriately fit your environment.
- Demystify Oracle Licensing and Optimize Spend – Phase 2: Evaluate Licensing Options
3. Evaluate agreement options
Review Oracle’s contract types and assess which best fit the organization’s licensing needs.
- Demystify Oracle Licensing and Optimize Spend – Phase 3: Evaluate Agreement Options
- Oracle TCO Calculator
4. Purchase and manage licenses
Conduct negotiations, purchase licensing, and finalize a licensing management strategy.
- Demystify Oracle Licensing and Optimize Spend – Phase 4: Purchase and Manage Licenses
- Oracle Terms & Conditions Evaluation Tool
- Controlled Vendor Communications Letter
- Vendor Communication Management Plan
Workshop: Demystify Oracle Licensing and Optimize Spend
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 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.
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
1.1 Gather software licensing data
1.2 Conduct a software inventory
1.3 Perform manual checks
1.4 Reconcile licenses
1.5 Create your Oracle licensing team
1.6 Meet with stakeholders to discuss the licensing position, cloud offerings, and budget allocation
Outputs
Copy of your Oracle License Statement
Software inventory report from software asset management (SAM) tool
Oracle Database Inventory Tool
RASCI Chart
Oracle Licensing Effective License Position (ELP) Template
Oracle Licensing Purchase Reference Guide
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
2.1 Review full, limited, restricted, and AST use licenses
2.2 Calculate license costs
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
Outputs
Oracle TCO Calculator
Oracle Licensing Purchase Reference Guide
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
3.1 Prepare to sign or renew your ULA
3.2 Decide on an agreement type that nets the maximum benefit
Outputs
Type of contract to be used
Oracle TCO Calculator
Oracle Licensing Purchase Reference Guide
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
4.1 Control the flow of communication terms and conditions
4.2 Use Info-Tech’s readiness assessment in preparation for the audit
4.3 Assign the right people to manage the environment
4.4 Meet with stakeholders to discuss the licensing position, cloud offerings, and budget allocation
Outputs
Controlled Vendor Communications Letter
Vendor Communication Management Plan
Oracle Terms & Conditions Evaluation Tool
RASCI Chart
Oracle Licensing Purchase Reference Guide