Case Study – Oracle Licensing Assessment – ADNOC (UAE) Oil and Gas – $6M Saved
Background
ADNOC is a major oil and gas enterprise based in the United Arab Emirates. With a vast global operation and thousands of employees, ADNOC relies on Oracle Database for critical data management and Oracle E-Business Suite (EBS) for core business functions. This reliance on Oracle made licensing compliance a mission-critical priority.
Challenges
A licensing assessment became necessary when an internal review, conducted ahead of a major Oracle renewal, revealed potential issues. Oracle EBS usage exceeded entitlements in user counts and activated modules, indicating significant EBS licensing exposure.
There were also Oracle Database licensing concerns: ADNOC had numerous database instances, some on virtual servers utilizing advanced features (a soft compliance risk under Oracle’s policies). Together, these gaps meant ADNOC risked non-compliance on multiple fronts.
Oracle caught wind of these findings and quickly applied pressure. They hinted at a looming audit and urged ADNOC to rapidly sign an expensive Unlimited License Agreement or purchase additional licenses to cover the perceived shortfall.
Oracle leveraged the fear of massive penalties to push for a quick, costly deal. Facing this multi-million-dollar ultimatum, ADNOC turned to an independent Oracle licensing assessment to validate Oracle’s claims and avoid unnecessary expenditures.
How Redress Compliance Helped
ADNOC engaged Redress Compliance for a comprehensive review and audit defense of its Oracle licenses. Redress began by performing a full Oracle licensing assessment of all databases, middleware, and Java deployments.
They gathered data on every Oracle Database instance (including those on VMware), every WebLogic Server installation, and each Java SE deployment enterprise-wide.
Redress experts reconciled this data with ADNOC’s Oracle entitlements. In EBS, they found unused modules enabled by default and numerous inactive user accounts that inflated license counts.
By disabling those unnecessary modules and removing dormant users, they eliminated a large portion of the apparent EBS compliance gap. For Oracle Databases, Redress demonstrated that some instances could be consolidated or moved to fully utilize already licensed servers, thereby avoiding the need for new licenses.
They challenged Oracle’s virtualization claims by referencing contract terms and demonstrating that ADNOC properly partitioned its VMware servers. This significantly reduced the scope of Oracle’s compliance claims.
For Java SE, Redress identified which installations required a subscription and which could remain under free rights. They guided ADNOC to remove or upgrade certain Java versions and license only essential installations, significantly lowering anticipated Java fees.
Throughout the engagement, Redress served as ADNOC’s Oracle audit defense advisor. They prepared detailed reports to correct Oracle’s assumptions and drastically cut the claimed shortfall. Redress also coached ADNOC in negotiation, countering Oracle’s pressure with hard data showing a much smaller compliance gap.
By modeling alternative scenarios – such as hardware reallocation and rightsizing of Oracle instances – they optimized ADNOC’s license position to reduce Oracle costs without sacrificing performance.
Outcome and Impact
With Redress’s guidance, ADNOC avoided a full Oracle audit and the exorbitant costs Oracle had threatened. The assessment revealed approximately $6 million in potential exposure, which was reduced to virtually zero through remediation and the optimized use of existing licenses.
ADNOC ultimately did not have to sign a costly ULA or spend millions on extra licenses. In total, they achieved $6 million in cost avoidance, freeing up budget for other critical initiatives.
Beyond immediate savings, ADNOC gained a stronger negotiating position for its upcoming Oracle renewal. Armed with accurate data and independent analysis, the team can now engage with Oracle on equal footing, rather than under duress.
The engagement also established better processes for monitoring Oracle usage, significantly reducing the risk of unintentional non-compliance in the future. Moreover, the company kept full control over its IT architecture without Oracle-imposed changes.
Client Testimonial
IT Procurement Lead, ADNOC: “Redress Compliance turned what could have been a $6 million compliance crisis into a non-event. Their understanding of Oracle EBS and database licensing was evident from day one. Thanks to Redress’s independent expertise, we corrected our licensing position before Oracle could levy penalties. We not only avoided unnecessary costs but also regained control of our Oracle negotiations. Redress’s support was instrumental in protecting our budget and operational flexibility.”
Call-to-Action
If your organization faces Oracle licensing uncertainty or audit threats, don’t wait. Contact Redress Compliance today for a comprehensive Oracle licensing assessment to reduce costs, minimize compliance risks, and strengthen your negotiation position with Oracle.
Further:
- Read about other Oracle Licensing Assessment Case Studies.
- Read more about our Oracle License Management Services.
