Oracle licensing

Oracle Compliance – What are the financial risks in 2024

Oracle compliance refers to:

  • Adherence to Licensing Terms: Ensuring that the use of Oracle software aligns with the terms and conditions of the licensing agreement.
  • Audit Readiness: Being prepared for Oracle’s licensing audits to verify compliance.
  • Risk Avoidance: Minimizing legal and financial risks by avoiding violating Oracle’s licensing policies.
  • Cost Management: Controlling costs by maintaining proper license usage and avoiding penalties.
  • License Optimization: Effectively managing Oracle licenses to ensure optimal utilization and compliance.
  • Regular Review: Conducting periodic assessments of Oracle license usage to maintain ongoing compliance.

Oracle Compliance

oracle compliance

Oracle compliance is based upon Oracle license entitlements, which cover what you use and have deployed in terms of Oracle software.

Oracle customers own the software that they install on their servers but have the right to use it.

That usage right is another name for an Oracle license. The Oracle license agreement describes which companies can use the Oracle software, how you can use it, and for how long.

Oracle Compliance – The Financial Risk

Oracle Database Enterprise Edition License is 47,500 $ per processor, which is based upon the number of cores you have in your server.

If your license is per user, the price is 950 $ per user. Licenses are perpetual, and a 22% annual technical support fee allows you to update to new versions without additional costs.

Eighteen additional licenses cover Oracle Database enterprise edition features. The price for them is on the Oracle technology price list.

Those products must have the same license metric, processor, or named user plus as the database enterprise edition, and the quantities must also match the database license.

Oracle Database Standard Edition 2 is licensed per occupied CPU socket, costing $17,500 for a one-time license fee. Then, there are 22% in technical support fees every year.

Oracle WebLogic Standard Edition costs 10,000 $ one-time license fee and is licensed per occupied processor socket.

Oracle WebLogic Enterprise Edition is core-based licensing and costs 25,000 $ per processor license.

All Oracle software products have 22% annual technical support fees for license purchases.

What is an Oracle audit?

Now that we know how expensive it can be to license a single server running Oracle Software, we understand why companies fear Oracle audits.

Oracle is one of the most active software vendors for auditing its customers.

An Oracle audit is when Oracle selects one of its customers for a software license audit to determine whether the customer is compliant with their Oracle licenses.

Oracle knows it is tough for its customers to stay Oracle-compliant with their software licenses. Oracle licensing rules and policies can be challenging to interpret for someone unfamiliar with Oracle license management.

Oracle Compliance: Best Practices for Effective Management

oracle compliance best practices
  1. Leverage External Expertise:
    • Large companies with internal software asset management (SAM) teams often seek external Oracle licensing expertise. Considering the complexity of Oracle compliance, it’s beneficial to consult with an Oracle licensing expert for specialized guidance.
  2. Exercise Caution with SAM Tooling:
    • Relying solely on SAM tools for Oracle compliance can be risky. These tools might cover only about 80% of compliance requirements. If overlooked, the remaining 20% gap could potentially lead to significant financial penalties in the event of an Oracle audit.
  3. Conduct Annual Oracle Compliance Health Check-ups:
    • Regular health checks of your Oracle compliance are crucial. Utilizing external Oracle licensing consultants provides a fresh perspective and an additional validation layer to ensure compliance.
  4. Choose Specialized Oracle Licensing Experts:
    • Generic software asset management providers may lack the nuanced expertise required for Oracle compliance. To get the most accurate and effective guidance, engage with consultants specializing in Oracle licensing.
  5. Manage Oracle ULA Agreements Effectively:
    • If you have an Oracle Unlimited License Agreement (ULA), managing it correctly is critical. A common reason for ULA renewal is non-compliance with the agreement terms. Proper management of your ULA can prevent unexpected non-compliance issues.

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  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.