With Oracle’s dominance in the IT marketplace spreading across the entire hardware and software stack, the job of monitoring and controlling your software assets is becoming more challenging and time consuming than ever before.
Understanding your Cloud license options and “on-premise” license options, as well as public and private cloud options is vital.
Do you know what Oracle Software you own?
Can you prove it?
Do you know what Oracle Software you are using?
Can you measure it?
Have you compared the two?
Can you show you are compliant?
What Licencing model do you need for the future?
Do you know how to get there?
Do you have a repeatable Auditable process?
Would you know where to start?
Industry experts such as Gartner and FAST (Federation Against Software Theft), have suggested that effective License Management can reduce your overall IT software costs by up to 20%. From evidence we have gathered whilst working with enterprise organizations and public sector bodies, we have seen savings of more than double this industry average. The reality of the situation is that if you do not have control over your Oracle license estate, you could be spending more than you need and risking noncompliance. Furthermore, the risk of non-compliance is increased in the event of an Oracle LMS audit – a scenario that usually results in unbudgeted cost, business disruption and sometimes even reputational damage for your organization.
Oracle License Optimization for Oracle Licensing
Using over 20 years of experience, we have developed the most complete end-to-end solution to control costs and, solve and maintain Oracle license compliance. OLO is a service for cost saving and optimization of Oracle licensing. This service delivers Oracle cost management, compliance and solves license complexity. Once you have optimized your Oracle estate, this process can be reviewed regularly to ensure ongoing control of costs and compliance while helping your business realize the value of your Oracle investments.
OLO is a service, that was set up by an ex-Oracle Director and a team of highly skilled Oracle DBA’s. Our Oracle License Optimization and advice services are based on our extensive experience of client delivery and using tried and tested methodologies. We deliver Oracle license compliance with an optimized cost profile.
The two most common drivers for OLO projects are Oracle cost reduction and Oracle license compliance. Oracle compliance focused projects are often due to proactive good corporate governance, the threat of a vendor audit or a claim of non-compliance.
Vendor audits can have serious implications for your organization in terms of cost, disruption and unplanned consequences.
Take matters into your own hands
A successful OLO intervention can help reduce the risks of an unplanned audit. In our experience – based on working with several hundred organizations – the vendor will rarely want to tie up their own resources in an audit exercise if you have the matter in hand. So, if you demonstrate self-audit capability, deep licensing expertise around the product set in question, and a strong grasp of your own situation, the chances of a vendor audit are reduced. We can help you do this.
Why preparation matters . . .
- We believe that it’s better to be proactive. Not only can self-audit reduce the chances of a vendor audit, but it also allows you to do things on your own terms.
In our experience the key issues of a reactive approach to threat are:
• Timescales are decided by the vendor, not by the availability of budget, technical and commercial resources which can impact on your business
• Audit activity is likely to be tactical, so outputs will have little long term value
• Costs are always higher. Loss of leverage and having less chance to consider strategic licensing options can drive resolution to higher cost scenarios, which can significantly increase opex costs long term. Backdated support and penalties also have cost implications
• Preparing for an audit will delay the adoption of a more proactive OLO strategy
• Confidence in the IT function can be undermined if IT Governance is questioned or if a vendor demands on an intrusive software audit which impacts the business
In short, a proactive approach to Oracle Licence Optimisation can help mitigate the risk of an audit and will generally produce significant cost reductions and reduce the risk of Oracle noncompliance.
If you’re faced with an unplanned vendor audit don’t panic but do take advice from our OLA Team.
Investment in OLO is generally made with the understanding that it will help reduce IT costs – a factor that is becoming more pressing in the current climate.
Fortunately, in most cases total software cost will indeed be reduced during an OLO roll-out, due to better understanding deployment and clarifying current global license grants. But the simple fact is that the better you understand OLO objectives for cost reduction, the more you’ll benefit. And that’s where we can play a key part in helping optimize Oracle savings.
Optimum understanding, optimum savings
We break down cost reduction objectives into “seven key categories of potential savings”, enabling you to set objectives such as procurement best practices and track success from day one.
We stress, however, that Oracle cost reduction objectives are rarely achieved if there is too much reliance on an OLO intervention or straight vendor negotiation and purchasing strategies in isolation. We understand that the best results come from examining the bigger picture.
The Pareto principle – whereby 80% of the gains will come from only 20% of the software categories – applies to OLO. A successful OLO program is holistic, but doesn’t attempt to control every single software asset.
Other IT cost reduction initiatives, such as Data Centre consolidation and virtualization, are often based on business cases that don’t take into account the impact of change on enterprise software licensing. This regularly causes issues further down the line, as the choice of architecture can have a huge impact on total cost of ownership in either direction.
Well prepared = audit ready
Another driver for OLO is Oracle compliance management and the threat of a vendor audit. Audits can disrupt your organization and are becoming increasingly common as economic conditions decline. The potential for unbudgeted spend, loss of leverage and damage to vendor relationships are also compelling reasons to take control of the assets.
If your organization is conducting an IT cost reduction review with a software focus, whether operating costs (Opex) or capitals costs (Capex), our holistic approach allows you to manage your assets and be proactive.
Software Asset Management Using Auto Discovery Tools
For most enterprises, deploying an automated license discovery tool makes sense when the need arises to quickly uncover where software has been deployed. This ability to gain quick access to accurate information can be especially valuable in situations such as reporting on the usage of an Oracle unlimited licensing agreement (ULA) or as a result of a request from the software vendor for a license review.
Knowing what’s on your network is the first step towards a software asset management (SAM) approach and enables you to make better procurement decisions based on accurate and up to date information.
But, while automated discovery tools allow IT departments and IT service providers to quickly gather accurate intelligence about the assets under their control, they may lack the ability to interpret the information and then accurately compare that to the license grants held. The real value-add is being able to understand what you are using, combined with your license entitlements, (what you have bought) and with correct interpretation, give an accurate picture of your compliance position.
Our OLO is able to provide you with accurate and reliable advice and have the ability to:
• Interpret up to date data from auto discovery tools for effective reporting on license compliance
• Help to keep the total cost of ownership under control and accurately determine how much has been invested in your licensing estate
• Increase your organization’s control over its relationship with Oracle
It is clear that auto discovery tools play an important role in establishing a software asset management process. However, through consulting with us, we can help you interpret this data and then accurately plot the compliance position by analyzing your license entitlements and contracts. Through involving us early in this process many organizations go on to enjoy cost savings from improved visibility into software usage whilst eliminating the risks associated with non-compliance.