Oracle Global Licensing and Advisory Services (GLAS)
- GLAS is Oracle’s audit division, responsible for verifying compliance with software licenses.
- Local auditors coordinate the audit, while a technical team in Romania handles data analysis.
- Oracle often hires junior auditors, making an independent review of findings essential to avoid costly errors.
- GLAS frequently audits organizations to ensure compliance and drive revenue through license sales.
Oracle Global Licensing and Advisory Services (GLAS)
Oracle Global Licensing and Advisory Services (GLAS) is Oracle’s audit division, created to ensure that customers comply with the licensing terms of their software agreements.
Oracle Software audits are a substantial revenue generator for Oracle, so GLAS plays a crucial role in maintaining control over Oracle’s licensing ecosystem.
However, the audit process is not solely about compliance; it can often become a significant financial event for organizations if handled poorly.
Oracle audits are typically framed as compliance checks but can result in unexpected financial burdens.
To navigate this process successfully, it is essential to understand how Oracle conducts its audits through GLAS, the role of local auditors, and the importance of reviewing the audit findings independently.
How GLAS Operates: A Two-Tier Structure
GLAS operates with two key components: local customer-facing auditors and a central technical audit team based in Romania. Each team plays a distinct role, but they shape the entire audit process together.
1. Customer-Facing Auditors: The Local Point of Contact
In most cases, Oracle assigns a customer-facing auditor in your country or region. This person is responsible for:
- Coordinating the audit process from start to finish.
- Hosting the kick-off meeting, where the audit scope is defined and clarified.
- Managing communication between Oracle and your organization, ensuring that all requests for data and information are handled smoothly.
- Presenting the audit findings once the technical analysis is complete.
These local auditors are essentially the face of Oracle during the audit, working closely with your internal teams. However, while they manage the process and act as intermediaries, they are not usually involved in the technical analysis of your data.
2. Technical Audit Team in Romania: The Back-End Engine
The heavy lifting of the audit happens behind the scenes, where the central team in Romania comes into play. The Romanian team is responsible for the technical aspects of the audit, including:
- Running Oracle’s license compliance scripts on the data provided by your organization.
- Analyzing your software usage and identifying potential licensing gaps or non-compliance.
- Reviewing database deployments, middleware, applications, and any other Oracle products in your IT environment.
This team handles all technical analysis remotely, and often, the local customer-facing auditor may rely heavily on their findings to present conclusions to you.
However, there are instances where the Romanian team leads the entire audit without local representation, particularly in regions where Oracle does not have a dedicated customer-facing auditor.
Challenges with GLAS Audits
While Oracle positions GLAS as an independent entity tasked with ensuring compliance, there are several challenges associated with the GLAS audit process:
1. Junior Auditors and Common Mistakes
Oracle often hires junior auditors to handle GLAS audits, particularly in the initial stages of their careers. While well-versed in Oracle’s audit processes, these auditors may not always have the experience required to fully understand the complexity of Oracle’s licensing models. The result can be:
- Misinterpretation of data: Junior auditors may misunderstand how Oracle’s licensing terms apply to certain deployment models, especially when dealing with complex IT infrastructures like virtualized environments.
- Errors in audit findings: Mistakes in calculating licensing requirements or in identifying the usage of unlicensed features are common when auditors are inexperienced.
These issues can lead to over-reporting of non-compliance, which can inflate the additional licenses Oracle claims you need to purchase.
2. Interpretation Errors
Oracle’s licensing policies are notoriously complicated, with different rules applying depending on factors such as:
- The number of users accessing software.
- How many processor cores are used in a server environment?
- Whether the software is being run in a virtualized or physical environment.
A common pitfall of GLAS audits is that the auditors may apply Oracle’s licensing rules incorrectly, particularly in complex environments. This is why it’s crucial to independently review Oracle’s findings, as licensing experts can help ensure that the licensing terms are applied correctly and fairly.
Why Independent Review of GLAS Findings is Crucial
Given the frequent errors and interpretation challenges during GLAS audits, relying solely on the GLAS report can be risky. A second-hand review by an Oracle licensing expert is strongly recommended for several reasons:
1. Catching Mistakes
An independent review can help you identify mistakes in Oracle’s report. Even minor miscalculations in Oracle’s analysis can result in significant financial impacts. Experts familiar with Oracle’s licensing models can review the audit findings to spot discrepancies or overcharges.
2. Challenging Incorrect Findings
Oracle’s auditors might take a worst-case interpretation of your licensing, which may be inaccurate. Having a licensing expert in your corner allows you to challenge Oracle’s assumptions and present a case for a more favorable interpretation of the licensing rules.
3. Avoiding Overpayment
The stakes are high in an Oracle audit. If the findings are not thoroughly reviewed, your organization could end up paying for licenses you don’t need or, worse, paying penalties for issues that aren’t even violations of your agreements.
An independent review can help ensure that you only pay for genuine compliance gaps, not errors or misunderstandings in the report.
What to Expect from an Oracle GLAS Audit
Here’s a breakdown of what you can expect during a GLAS audit:
1. Formal Notification and Kick-Off Meeting: The process begins with a formal notification from Oracle. A customer-facing auditor will organize a kick-off meeting to discuss the scope of the audit. You will be asked to provide an overview of your Oracle environment, including legal entities, applications in use, and geographical deployment.
2. Running Oracle License Compliance Scripts: You must run Oracle’s compliance scripts across your infrastructure, which will collect data on your Oracle deployments. These scripts are key to determining licensing gaps but require in-depth analysis to ensure their findings are accurate.
3. Data Review by the Romanian Team Once the data is collected, Oracle’s technical audit team in Romania will conduct a detailed review. They will analyze your usage against your license entitlements and look for any signs of non-compliance, such as unlicensed features or over-deployment.
4. Audit Findings Oracle will present a preliminary report based on the data analyzed by the Romanian team. This report will outline potential compliance gaps, including suggestions for rectifying them. You will then be required to review and respond to this report.
5. Negotiation The final step is negotiation. Based on Oracle’s findings, you may need to purchase additional licenses or negotiate retroactive fees for unlicensed use. However, you can challenge Oracle’s findings and negotiate better terms, particularly if you can prove that some of the findings were based on errors or misinterpretations.
FAQ on Oracle Global Licensing and Advisory Services
What is Oracle GLAS?
Oracle GLAS (Global Licensing and Advisory Services) is Oracle’s audit division, which is responsible for conducting software license audits to ensure compliance with license agreements.
How does Oracle GLAS operate?
Oracle GLAS operates with local auditors handling customer-facing tasks, while a central team in Romania performs the technical audit work.
What does the local auditor do?
The local auditor coordinates the audit process, including the kick-off meeting, scope definition, and presenting the audit findings to the customer.
Who handles the technical analysis during the audit?
Oracle’s audit team, based in Romania, conducts the technical analysis, including running Oracle’s compliance scripts and interpreting results.
Can the Romanian team lead an audit without a local auditor?
Yes, in some cases, if there is no local auditor, the Romanian team will lead the audit remotely and handle all communications.
Why is it important to review GLAS audit findings independently?
GLAS often employs junior auditors who may make mistakes. An independent review ensures the findings are accurate, and you don’t pay for non-compliance that doesn’t exist.
What are common errors found in Oracle GLAS audits?
Errors include misinterpreting data, calculating licenses incorrectly, and misunderstanding Oracle’s complex licensing rules, which can lead to inflated non-compliance findings.
What should I do if I find errors in the GLAS audit report?
You should challenge the findings with Oracle and provide your analysis to ensure that you are not paying for mistakes in the audit.
Does Oracle GLAS audit all Oracle products?
Yes, Oracle GLAS audits the full range of Oracle products, including databases, middleware, and applications.
Can Oracle GLAS conduct virtual audits?
Yes, Oracle GLAS can conduct audits remotely. The Romanian team can analyze the data shared via Oracle’s Audit Portal.
What tools does Oracle GLAS use during an audit?
Oracle GLAS uses the Oracle LMS Collection Tool to collect data about your software deployments and check for compliance with licensing agreements.
Do license sales incentivize Oracle GLAS auditors?
Sales do not directly incentivize GLAS auditors, but their audits often lead to additional license purchases if non-compliance is found.
How often does Oracle GLAS conduct audits?
Oracle generally conducts audits every 3-4 years, but the frequency can vary based on factors like changes in your IT environment or past non-compliance.
What is the purpose of an Oracle GLAS audit?
The main purpose is to verify that you are using Oracle software according to your licensing agreements. However, audits also often lead to new sales opportunities for Oracle.
Can Oracle GLAS negotiate the audit scope?
Yes, with the help of an independent expert, you can negotiate the scope of the audit to focus on specific products or environments, minimizing risks.
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