Case Study – Oracle Licensing Assessment – Pernod Ricard – $4M Saved
Background
Pernod Ricard is a global beverage company headquartered in France with nearly 20,000 employees and operations worldwide. The company relies on Oracle software for critical business systems (ERP, supply chain, customer management, etc.), including multiple Oracle Database instances and extensive Oracle Java SE use across its IT environment.
In recent years, Pernod Ricard began moving Oracle workloads to the cloud, introducing new licensing challenges. Without centralized oversight, this hybrid on-premises/cloud environment had hidden compliance risks and potential Oracle licensing pitfalls.
Challenges
Oracle soon initiated a “soft” audit of Pernod Ricard’s Java SE usage and cloud deployments. Oracle has been aggressive in auditing Java compliance, and Pernod Ricard’s widespread Java installations became a prime target.
Oracle’s auditors claimed the company needed an expensive enterprise-wide Java SE subscription under Oracle’s new model – essentially licensing every employee and inflating costs by millions.
Meanwhile, Oracle flagged an Oracle cloud licensing exposure, pointing out that two cloud vCPUs are equivalent to one Oracle processor license – meaning some cloud database instances were underlicensed. Oracle also raised a virtualization issue, arguing that even one Oracle VM could require licensing the entire VMware cluster.
These combined claims put Pernod Ricard at risk of hefty fees or overspending on licenses. Without expert intervention, the company faced a multi-million dollar compliance liability.
How Redress Compliance Helped
Pernod Ricard engaged Redress Compliance to perform a comprehensive Oracle licensing assessment and remediate the risks.
Redress’s experts audited all Oracle deployments and entitlements, then executed a targeted plan:
- License & Usage Audit: Inventoried every Oracle Database instance (on-premises and cloud) and all Java SE installations, comparing usage against entitlements. Redress produced an Effective License Position (ELP) report to pinpoint compliance gaps and any areas of over-licensing.
- Java SE Optimization: Advised uninstalling or replacing non-essential Oracle Java with open-source alternatives, drastically reducing the number of Java licenses required without disrupting operations. This Oracle license optimization eliminated a significant portion of the Java subscription costs that Oracle was charging.
- Cloud & VMware Fixes: Corrected cloud licensing gaps by ensuring all AWS/Azure VMs met Oracle’s BYOL rules (two vCPUs per license) and adjusting configurations. To mitigate Oracle’s virtualization risk, Redress isolated Oracle workloads on dedicated servers, preventing any need to license entire VMware clusters.
- Audit Defense & Negotiation: As Pernod Ricard’s Oracle audit defense partner, Redress managed all communication with Oracle LMS. Using hard data to refute Oracle’s claims, they negotiated a resolution with no penalties. Oracle closed the audit with the company purchasing only a minimal number of licenses to cover its actual needs – instead of the multi-million-dollar bundle Oracle initially demanded. This outcome avoided overpayment and immediately resolved the audit threat.
Outcome and Impact
Redress Compliance delivered a significant win for Pernod Ricard. The Oracle licensing assessment uncovered compliance issues that could have cost millions, all of which were resolved proactively.
In total, the company saved $4 million by avoiding unnecessary Oracle costs, including not purchasing unnecessary licenses or subscriptions. All audit exposure was eliminated – Oracle’s claims were settled with zero penalties. Pernod Ricard is now fully Oracle compliant under optimized terms, with clear cloud usage rights and defined virtualization boundaries.
The firm also reduced ongoing Oracle support costs by rightsizing its license footprint. Most importantly, IT leadership regained control and confidence over their Oracle licensing.
Any future Oracle audits or negotiations will start from a position of strength, with a verified compliant environment and a strategic licensing plan in place moving forward.
Client Testimonial
“Redress Compliance turned our Oracle audit nightmare into a success story. They identified hidden licensing risks, guided us through remediation, and shielded us from Oracle’s aggressive tactics. We avoided overpaying, saved $4 million, and achieved full compliance – giving us peace of mind about our Oracle usage.”
– CIO, Global Beverage Company
Call to Action
Facing an Oracle audit or complex Oracle licensing issues? Contact Redress Compliance for an Oracle licensing assessment.
Our experts help companies reduce Oracle Database licensing costs, defend against Oracle LMS audits, and optimize Oracle contracts. Don’t let Oracle dictate terms – let us help you avoid Oracle audit penalties and take control of your Oracle licensing today.
Further:
- Read about other Oracle Licensing Assessment Case Studies.
- Read more about our Oracle License Management Services.
