The Challenge
A U.S.-based manufacturing company with 1,800 employees recently faced a challenge with Oracle over Java license compliance. Oracle had discovered extensive downloads of licensable software and initiated a soft audit.
They initially demanded the company purchase licenses retroactively for four years, plus an additional year going forward, proposing a five-year agreement totaling $1.3 million.
The Process
Faced with Oracle’s daunting demands, the company thoroughly reviewed the situation, including analyzing emails and deployment data.
A strategic workshop was hosted to explore all available options. Following expert advice, the VP of Sourcing negotiated tough negotiations, proposing that the company dispute the retroactive usage and only focus on going forward licenses.
After three weeks of discussions, Oracle presented a significantly reduced offer, amounting to 90% of their original demand. This translated to a substantial financial saving for the manufacturing company.
A Quote from the CIO
“Oracle’s compliance claims and the looming threat of legal action backed us into a corner. Seeking guidance from Redress Compliance, we meticulously walked through our options. We came to understand our audit risk and learned how other organizations had negotiated with Oracle, which gave us confidence in trusting Redress with their proposed strategy.
Their negotiation strategy was key, helping craft our communications that ultimately led Oracle to offer a resolution at just $129,000, and we got an audit-proof solution.
The Solution
With the final demand from Oracle at $1.5 million initially, Redress Compliance played a crucial role in helping the company:
- Develop a coherent response strategy to Oracle’s audit demands.
- Formulate a robust negotiation strategy and provide strategic advice.
- Offer behind-the-scenes support during the negotiation process.
The Outcome
The resolution of this case brings to light several vital points:
- Oracle’s demands can often be excessive, so knowing how to effectively counter them is essential.
- Understanding Oracle’s audit methodology and tactics is crucial for ensuring confidence in your strategy.
- Software audits can play dirty; preparing to fight back hard is important.
These lessons underline the significance of being well-prepared and aggressive when facing software compliance challenges.
The Outcome
95% reduction from what the client believed was Oracle’s best and final offer.
Need Expert Help?
Is your organization facing Java licensing issues?
Contact us to understand how we can support you and help you avoid paying large sums of money to Oracle.
