Case Study – Oracle Licensing Assessment – Kazakhstan Minerals Mining Industry– $2M Saved
Background
Kazakhstan Minerals is a regional mining company in Kazakhstan. Its IT systems rely on Oracle Database for operational and geological data, and it also uses Oracle Java SE in engineering applications.
Because Oracle software is heavily used, proper licensing is crucial to avoid financial risks and disruptions.
Challenges
Kazakhstan Minerals was subjected to an Oracle license audit, which scrutinized its usage of the Oracle Database and Java SE. Oracle’s auditors flagged under-licensing concerns, especially because the company ran Oracle Databases on both physical servers and VMware.
Oracle claimed that every host in these environments required licensing, thereby greatly expanding the compliance scope. Additionally, Oracle noted numerous Oracle Java SE installations that might require paid subscriptions under its newer rules.
Oracle’s audit team alleged a multi-million-dollar shortfall. Then Oracle’s sales representatives pushed Kazakhstan Minerals to purchase an expensive license package immediately, claiming it would be cheaper than the formal penalties.
Facing an unexpected compliance bill of around $2 million and intense pressure from Oracle, Kazakhstan Minerals sought an independent second opinion.
The company engaged Redress Compliance for an Oracle licensing assessment to verify Oracle’s claims and help defend against the audit.
How Redress Compliance Helped
Redress Compliance conducted a detailed audit of Kazakhstan Minerals’ Oracle deployments. The team collected data on all Oracle Database instances (physical and virtual) and cross-checked usage against the company’s license entitlements.
This analysis showed Oracle’s claims were overstated. Oracle had misclassified some database servers as requiring cluster-wide licensing even though they were properly partitioned to specific hosts.
Citing contract language and technical evidence, Redress drastically reduced the number of database licenses Oracle claimed were required.
In parallel, Redress assessed the company’s use of Java SE. They inventoried all Oracle Java installations across mining sites and offices to determine which truly required a subscription. Many installations were older versions or used in ways that did not trigger Oracle’s paid license requirements.
For others, the team helped Kazakhstan Minerals transition those systems to OpenJDK (the free Java alternative), eliminating many potential fees.
After these measures, only a minimal number of Java SE subscriptions were needed for the remaining Oracle-dependent Java applications.
Throughout, Redress represented Kazakhstan Minerals in discussions with Oracle.
They compiled a detailed license report that refuted Oracle’s findings point by point. Armed with this analysis, the company pushed back with confidence.
Redress guided negotiations, countering Oracle’s pressure by demonstrating that the alleged gaps were largely resolved or based on incorrect assumptions.
Outcome and Impact
With Redress’s support, Kazakhstan Minerals successfully navigated a potentially costly audit, ultimately achieving a manageable outcome. Oracle’s initial compliance claim of about $2 million in fees was reduced to virtually zero.
The company did not have to purchase the large license package that Oracle had offered. Instead, it only acquired a few necessary licenses to cover minor gaps, and no audit penalties were incurred. Approximately $2 million in costs were avoided.
Kazakhstan Minerals also preserved control over its IT strategy. It avoided being forced into an Oracle unlimited agreement or unnecessary cloud subscriptions, keeping its future architecture flexible.
The IT staff gained a deeper understanding of Oracle licensing, particularly how to properly license databases in VMware environments and manage Java by Oracle’s policies.
Oracle backed away once presented with facts, and the audit closed without further issues. Kazakhstan Minerals emerged with all the Oracle licenses it needed, none it didn’t, and greater confidence in managing its Oracle assets.
Client Testimonial
CFO, Kazakhstan Minerals: “Oracle’s audit threatened to saddle us with huge costs or inflexible agreements. Engaging Redress Compliance changed the trajectory completely. Their expertise in Oracle Database licensing and virtualization rules was instrumental in disproving Oracle’s inflated claims.
On the Java front, Redress demonstrated how to avoid unnecessary subscriptions by utilizing open-source alternatives. Thanks to Redress, we escaped nearly $2 million in proposed charges and also learned how to stay compliant going forward.
Redress’s independent guidance gave us the leverage and confidence we needed to stand up to Oracle, and we emerged without paying a cent more than necessary.”
Call-to-Action
If your company is facing an Oracle license audit or struggling with complex Oracle licensing terms, let Redress Compliance be your advocate.
Our Oracle Licensing Assessment services help identify true compliance gaps, reduce or eliminate audit findings, and prevent overspending on Oracle licenses. Contact Redress Compliance to protect your business from Oracle audit risks and unnecessary costs.
Further:
- Read about other Oracle Licensing Assessment Case Studies.
- Read more about our Oracle License Management Services.
