Case Study – Oracle Licensing Assessment – NOV Inc US Energy– $22M Saved
Background
NOV Inc. is a U.S.-based energy technology company that holds an Oracle Unlimited License Agreement (ULA) covering the majority of its Oracle Database and WebLogic Server usage.
As NOV’s ULA neared expiration, ensuring compliance and maximizing its value were critical – a misstep could have led to tens of millions in new Oracle costs.
Challenges
As the ULA term approached its end, Oracle heavily pressured NOV to renew at a projected cost of over $22 million.
Oracle warned that if NOV didn’t renew, an audit would likely find a similar amount owed. They even suggested adding Java SE (not covered by the ULA) to the renewal, which would further raise the price.
NOV’s leadership was wary. Renewing on Oracle’s terms would lock the company into another expensive agreement, while exiting improperly could trigger penalties.
They engaged Redress Compliance to accurately quantify usage, execute a proper ULA exit, and address the Java SE issue – all to avoid the $22 million Oracle was demanding.
How Redress Compliance Helped
Redress Compliance guided NOV through the ULA exit. The team first inventoried all Oracle Database and WebLogic deployments covered by the ULA and compared them to the ULA’s limits.
They found Oracle had overestimated NOV’s usage by assuming the peak capacity of NOV’s virtual environments instead of actual usage. Redress also identified ways for NOV to optimize in the ULA’s final months.
By providing contract evidence and technical proof, they significantly reduced the number of database licenses Oracle claimed NOV needed to purchase.
Next, Redress addressed the usage of Oracle Java SE. They pinpointed which Java installations were outside the ULA and would require separate licensing.
Many of NOV’s Java instances were for internal tools or older versions that could be replaced with OpenJDK or did not require a subscription. For the few remaining needs, Redress devised a minimal Java licensing plan, ensuring Java would not become a compliance snag after the ULA.
Armed with accurate usage data, Redress crafted NOV’s ULA certification strategy. They prepared documentation showing exactly how many Oracle licenses NOV was entitled to once the ULA ended, based on actual usage.
Redress ensured the certification met all contractual requirements, and they pushed back when Oracle attempted to include anything beyond the ULA’s scope.
Throughout negotiations, Redress represented NOV’s interests. They presented NOV’s data-driven report and handled all communications, preventing Oracle from inflating requirements. When Oracle challenged certain points,
Redress countered with contract references and technical evidence. Ultimately, Oracle had to acknowledge NOV’s verified numbers.
Outcome and Impact
NOV Inc. successfully exited its Oracle ULA without any surprise costs and without renewing on Oracle’s terms. Oracle’s initial $22 million demand was entirely avoided. Through certification, NOV gained perpetual Oracle licenses for all its current deployments at no additional cost beyond the original ULA fees.
The Java SE compliance issue was also neatly resolved. After NOV’s adjustments, only a very small number of Java subscriptions were required for a few specific systems, as most Java usage was handled via OpenJDK or deemed non-licensable.
This outcome was transformative. NOV regained control over its Oracle licensing and can now adjust its IT strategy without the constraints of ULA. NOV’s team, guided by Redress, learned to accurately assess and document Oracle usage, thereby strengthening its position for future audits or negotiations. Oracle backed off. NOV ended up with all the Oracle licenses it needed and confidence that it would not overpay Oracle.
Client Testimonial
CIO, NOV Inc.: “Not renewing our Oracle ULA felt risky – Oracle had us convinced we’d owe tens of millions if we tried. Redress Compliance navigated us through each step and turned what could have been a $22 million nightmare into a victory. They meticulously calculated our Oracle usage and showed us how to optimize it.
When Oracle pushed back, Redress stood firm with facts and contract terms. Ultimately, we didn’t pay Oracle a dollar more.
We certified out of the ULA, retained the necessary licenses, and avoided a significant renewal. Redress’s independent expertise and unwavering support saved us $22 million and gave us confidence we’ll never be bullied into overpaying Oracle again.”
Call-to-Action
Exiting an Oracle ULA or facing a massive Oracle renewal doesn’t mean surrendering to Oracle’s terms. Redress Compliance specializes in Oracle ULA assessments and exit strategies to maximize your usage, ensure proper certification, and prevent overspending.
Before you sign a costly renewal or accept Oracle’s claims, contact Redress Compliance. We help you defend your rights, optimize your licenses, and save millions in Oracle costs.
Further:
- Read about other Oracle Licensing Assessment Case Studies.
- Read more about our Oracle License Management Services.
