How to Prepare for an Oracle License Audit
Preparing for an Oracle license audit can be intimidating. The audit process requires interpretations and data that may not be legally defensible in court. In addition, an audit will almost certainly find your company out of compliance. To avoid a potential audit, consider hiring a consultant. These experts are skilled in asset management and compliance self-assessment processes. They will work with you to determine the best asset management practices and policies for your company.
What is an Oracle license audit
An Oracle license audit is a legal process that determines whether you’re in compliance with your license agreement. This audit starts with a notification letter that lists all legal entities using Oracle software and the software programs they use. This letter is sent to your CIO or CFO and requests a single point of contact to coordinate the audit. Once your company agrees to the audit, your Oracle LMS Account Manager will send you an invoice for the licenses you need to maintain compliance.
If you find that you’re using more Oracle software than you should be, an audit can help you avoid incurring fees for unnecessary features and options. A license management tool will alert you of any accidental activations and separate them from legitimate ones. It can help you avoid unnecessary license fees because Oracle doesn’t distinguish between legitimate and accidental access to its software programs. In the case of accidental access, a license audit may mean the difference between compliance and infringement.
If an audit is underway, you may be contacted by Oracle. You are obligated to cooperate with the audit and provide information necessary for the audit. The Oracle agreement will specify what assistance is necessary and what information is needed to verify compliance. Usually, this audit takes place within three months after you have received the notice letter. However, you can opt to seek external help if you are worried you’re being audited.
How to prepare for an Oracle audit
Before you begin the process of preparing for an Oracle license audit, it is crucial that you gather data on how your organization uses Oracle software and gather all relevant information. You should gather this data from all environments, including any external data centers. In addition, you should collect and maintain all documentation related to how you use Oracle. Despite these concerns, being cooperative and friendly with auditors will pay off during the audit. To avoid unnecessary hassles, follow these tips:
You need to understand that Oracle has the legal right to audit you. Your license agreement serves as a contract between you and Oracle and lays out your responsibilities and expectations during the audit process. You should know that Oracle’s main motivation for conducting license audits is to increase its revenue. However, it is not uncommon for a company to fall out of compliance and incur hefty fines. Therefore, it is vital that you understand the legal obligations of your software agreement.
Ensure that your Oracle software license is updated, as Oracle may conduct audits on its customers. Your audit notification letter will provide you with more details about your license. The Oracle License Consultant will need to know what Oracle products and server deployment specifications you use. This information is crucial in helping Oracle to determine the appropriate amount of license to charge. Make sure that your database is current and accurate. Oracle also offers free trials of software products and solutions. However, if you don’t want to spend your valuable IT budget on a license audit, you should seek professional advice on Oracle licensing.
Oracle license audit process
The Oracle license audit process begins with a letter from Oracle requesting assistance. The letter lists legal entities using Oracle software, asks for a single point of contact, and requests that the company review all licensing agreements and contracts. Oracle then conducts the audit, which may involve other parties. In some countries, sales representatives may initiate the process themselves. In such cases, the company should review and update its licensing policies and contracts. Here are the steps for a successful Oracle license audit.
First, a notification letter is sent to the CIO or CFO with a list of legal entities and Oracle software programs. The letter also asks for a single point of contact who will coordinate the audit. A representative from Oracle will contact each legal entity to gather information. Once this contact is made, the company will have 30 days to purchase or renew any licenses. If a license audit does not show that there is a problem with a licensing policy, the company can simply repurchase the licenses.
Another step in the Oracle license audit process involves monitoring your usage of Oracle products. If you notice that your license usage is increasing, you may be tempted to stop the validation process. However, it is important to compare these lists with agreements to ensure that no violations have occurred. As a result, if an Oracle license audit does reveal increased number of licenses, make sure to check your agreements with Oracle to ensure that the new licensing policy is consistent with your current policies.
Common problems in Oracle audits
If you are preparing for an Oracle license audit, you should be aware of some common problems that users typically encounter. Many users end up assuming that Oracle will provide an accurate overview of their licenses, and in the process, they end up paying for more than they need. Instead, you should compare your list of Oracle licenses with the agreements you have in place with the vendor. It is also vital to check whether or not the metrics that you have registered are accurate.
First of all, you must be aware that the Oracle licensing process is a complex one. You can make the process easier by hiring an independent consultant or hiring an in-house consultant who has experience with Oracle licensing. Such a consultant can use the same tools used by Oracle auditors, and measure your Oracle installations. They can help you avoid some of the common pitfalls and ensure that you get the license that you need. So, don’t worry, we’ve got your back.
While this may seem like a straightforward task, it’s important to understand the nuances of Oracle licensing policies. Most audits will reveal a shortfall, which typically amounts to millions of dollars. These gaps don’t occur because customers are “overusing” Oracle, but because the licenses were not correctly managed. The most common reasons for license gaps in Oracle audits are related to the use of high-availability servers, failover clusters, virtualization, and user metrics.
Who is Oracle audit organization?
When an organization purchases an Oracle license, it becomes subject to an audit by Oracle. The audit process begins with a letter informing the organization of the pending audit. This letter lists the legal entities that own the Oracle software that will be audited and requests that they designate a single point of contact to coordinate the audit. During the audit, the organization must also make payment of the required licenses. A single point of contact will be designated by the company to coordinate the process.
Oracle Audit Defense benefits
Managing license entitlements can be an essential part of the Oracle Audit Defense process. By managing license entitlements properly, you can avoid unnecessary fees and penalties. For instance, conducting an internal audit of license usage and entitlements can help you assess whether your current Oracle licenses are still deployable. Companies that don’t keep detailed documentation of license usage can miss important details and take unnecessary risks. That’s why it’s important to start looking for help before your audit letter arrives. You should look into retaining an independent license expert to handle the audit process for you. These experts will save you time and provide guidance for a successful Oracle audit defense plan.
With the help of a licensed consultant, you can minimize the impact of the Oracle license audit. Oracle audits are not as common as you might think. Usually, it’s the sales representatives themselves that do these audits, and they might be looking at Java usage, SAM tool data, or LMS certification marketing hype. If your company is subject to an Oracle audit, it’s a good idea to hire an independent database consultant. Such a consultant will be able to determine the next steps and help you avoid costly mistakes. Keeping strict confidentiality is essential to avoid potential problems with the Oracle license audit. In addition to hiring an independent database consultant, you should gather ownership documentation. Oracle will ask for ownership documentation before the audit process begins.
How to negotiate an Oracle audit
If your business has been using Oracle software for years, you’ve probably heard of the recent changes to the licensing terms. In recent years, Oracle has sought to make audit language more restrictive, limit usage of Oracle products in non-oracle environments, and raise the cost of running non-oracle applications. But how do you negotiate an Oracle license audit? Here are some tips to avoid being burned. Follow these tips to get the best possible outcome.
Gather documentation about any and all Oracle specific product installations. This includes hardware and software specifications. If your business runs virtualization solutions, gather relevant data and hardware specs. Communicate the audit to your internal contacts. Assign a single point of contact for the Oracle LMS consultant and designate another person to be the main contact. This group should include your IT manager, systems administrator, and Oracle Database Admin. Be as cooperative and friendly as possible and you’ll reap the rewards later on.
Make sure your organisation follows the standard procedure for responding to Oracle audits.
The guide has contains steps to take in response to an Oracle audit. This will ensure that all relevant personnel are brought into the audit response playing squad. Oracle customers often pay for support for unused licenses. Taking proactive steps to reduce your risk of future audits is a critical part of your Oracle strategy. If you don’t, you’ll be left unable to defend your investment and could find yourself in a legal situation where they’re unable to pay you.
Oracle Audit Defense Strategy
Oracle software audits expose enterprise companies with financial risk due to the complexity of of Oracle licensing. Its 2022 as we write this blog and Oracle licensing has still not been solved by any software license management tool.
Now what should you do if you are audited by Oracle?
5 steps to take to be successful in Oracle audit defense
- Contact an Oracle licensing expert to lead the audit defense project
- Have the Oracle licensing expert analyze Oracle LMS scripts output.
- Review the Oracle licensing report that the consultant has given you
- Remediate any financial risk.
- hange your IT infrastructure to make sure you are compliant.
- Start the official Oracle audit when all steps are completed.
Frequently asked about Oracle audits
What conducts audits for Oracle?
Oracle do all their software audits in-house, they have an global organization called Oracle LMS, Oracle GLAS, Oracle SIA.
What tools do Oracle use to audit customers?
Oracle uses their own developed software scanning tool, its called Oracle LMSCollectionTool. It does not scan the data center for Oracle software, the end customer is responsible for running the script on servers where they have Oracle running.
How are customers non-compliant with Oracle software?
- Deploying Oracle on virtualized environments.
- Mistakenly using a feature part of a product that requires additional license.
- Wrongly calculating Oracle licensing on processors.
- Not end-dating user in Oracle applications.
- Mistakenly providing access to products that triggers additional licenses.
What should you do if you want help in an Oracle audit?
We recommend you contact our partners at Redress Compliance who are Oracle licensing experts and can help you with an Oracle license audit .