oracle audit defense

What is Oracle Audit Defense ?

Oracle Audit defense is a strategy for managing Oracle audits. Before we explain what an Oracle audit is, lets provide a high level overview of Oracle as a company. Oracle is a software company that provides enterprise software for companies to manage their IT applications. It is both a cloud and software licenses developer. Their flagship product is the Oracle database – DBMS, which is the most used Oracle database. Oracle also have ERP software both on-premises and in the cloud as well as owns the IP for Java JDK and JRE.

What is an Oracle Audit?

Software Oracle audits is when Oracle selects a customer for a software license audit. Software audits is a major source of revenue for most software companies, Oracle is no different. Oracle audits measure the usage and deployment of Oracle software in their customers own data centre or cloud environments. If the customer is found to be missing licenses, Oracle will ask them to purchase licenses to be correctly licensed.

Software audit Process

The Oracle audit process generally works like this, Oracle notifies in writing their intention to audit their customer and a letter is sent to the CFO at the company. The customer has 45 days to acknowledge the audit letter, how long the time to respond is defined in the Oracle Master Agreement which every Oracle customer have signed when purchasing Oracle software licenses.

Oracle will ask the end customer to run its Oracle license compliance scripts on all servers running Oracle software. Running the Oracle LMS scripts will provide a raw output consisting of up to 13 different files. You cannot analyse the script output without proper training. You will need to share it with Oracle and Oracle will then perform an Oracle audit and calculate your licensing position. You can read about the Oracle audit process on Oracle audit organization, website – Oracle LMS.

Which products do they audit?

Oracle software audits almost always include their Oracle database – DBMS and options, as well as Oracle application servers. If you have Oracle ERP – Oracle EBS. Oracle will want to audit your Oracle ERP also.

What you need to know about an Oracle license audit?

  • Most of the software compliance problems are because someone in your IT department misunderstood or didn’t know the Oracle licensing rules and policies.
  • This means that if you can find someone to review your Oracle licensing estate before the audit, there is a good chance you will pay no penalty fees in the Oracle audit.
  • Oracle audits can be difficult to control, we recommend you work with someone who has done hundreds of Oracle audits before as you will always have a plan and know what the next steps are.

Oracle Software – common Oracle compliance issues

  • Installing the wrong edition of Oracle software, causing you to be out of compliant with your software entitlements.
  • Having the wrong licensing metrics or model for a specific server, such as Oracle Named User Plus licensing when you should have a processor license.
  • Misunderstand how to license Oracle on VMware or other virtualization technologies.
  • Misunderstanding how to calculate Oracle licensing on AWS or on Azure.

Oracle Audit Negotiation Advisor – Why you need one

Why you need an advisor before the Oracle audit begins

  • You can negotiate which products Oracle will audit, there may be a reason for you to exclude a product where there is more uncertainty over your compliance position.
  • You can also exclude geographical areas, for example legal entities in other countries.
  • You should also negotiate which tools will be used, will you use Oracle scripts or use manual declaration / sharing of data.
  • Also negotiate the Oracle audit timeline, to make sure that Oracle audit has an end date that both parties agree to.

Why you need an Oracle audit negotiation advisor at the end of the audit

  • The Oracle audit report can be difficult to understand if you haven’t seen an Oracle license audit report previously, an audit advisor can explain the findings in a truthful way.
  • Oracle will never include pricing or discounts in an Oracle license audit report, and here is where the audit negotiation advisor comes in. If he/she is experienced and have been involved in many Oracle audits before, they can tell you how much other companies paid for similar findings, to make sure that you don’t overpay to Oracle.

3 reasons why you should get help from an advisor

  • By using an external audit negotiation advisor, it can help you to think emotionally over any shortfalls as there might be internal blame on whose fault the non-compliance is.
  • An Oracle audit negotiation advisor who is experienced will be able to provide you with a feeling that you are in control over the audit, that there are no surprises.
  • An audit advisor will also make sure that you do not make any mistakes in negotiating the audit before it begins but also at the end. Oracle licensing mistakes are very costly.

Recommendations to respond to an Oracle notification for audit

  • As soon as you recieve the Oracle audit letter, contact an independent Oracle licensing expert firm to help your company review your Oracle licensing position.
  • The company will be able to take Oracle official audit scripts and tell you the results before the official Oracle audit begins.
  • You will then need to make a decision on how to remediate the compliance issues, such as make changes to your infrastructure and/or purchase licenses.
  • The firm can then provide you with an Oracle audit defense strategy, which includes what type of data to share with Oracle, communciation strategy and negotiation advisory.

Watch the video below to learn more how to respond to an Oracle software audit.

Oracle Audit Defense - A plan by ex Oracle employees

Read more on our blog

Oracle License Audit – how to take control

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