oracle audit

Oracle License Audit Process – A Comprehensive Guide

Navigating the Oracle License Audit process can be a challenging task. It demands a keen eye for detail, a thorough understanding of Oracle’s licensing policies, and a comprehensive knowledge of your organization’s Oracle software usage.

This guide aims to simplify the Oracle License Audit process, providing you with the necessary tools to navigate each step confidently.

oracle license audit process

Step 1: Oracle Audit Notification

The Oracle audit process begins with a notification from Oracle’s License Management Services (LMS). This notification is typically sent to your organization’s CFO, CIO, or both.

It outlines Oracle’s intention to conduct a software license audit and specifies whether Oracle or an Oracle reseller/partner will conduct the audit. The notification also details the Oracle software products that will be audited.

However, it’s important to note that the scope of the audit can be negotiated at a later stage.

Step 2: Audit Kick-off Meeting

The next step in the process is the audit kick-off meeting. The primary goal of this meeting is to agree on a timeline for sharing the necessary data.

Oracle’s audit process relies heavily on your cooperation and data provision. Oracle will want you to run their LMS scripts or license compliance tools.

Key points to remember during this stage are:

  • Review your contracts to understand whether you must run Oracle’s audit scripts.
  • Oracle will aim to audit as many products as possible. Your role is to minimize the scope of the audit through negotiation.
  • You should also negotiate which tools to run. Oracle will likely suggest the Oracle LMS Collection Tool, PowerCLI, to capture information about Oracle on VMWare and request details about any public cloud deployments, such as instance types.

Step 3: Data Sharing & Oracle LMS Scripts

Oracle provides a web-based license audit portal where you will answer a questionnaire about your Oracle usage.

It’s essential to provide accurate information here. You can download the Oracle LMS scripts that Oracle wants you to run and upload the output in the same portal.

However, we advise against sharing any data you haven’t independently analyzed with Oracle.

Before proceeding with this step, ensure that you have had someone review all the data to avoid sharing information that could put your organization at risk.

Step 4: Oracle Audit Report

You will receive a report approximately 4-6 weeks after sharing the data with Oracle. This is usually a “preliminary report,” where Oracle asks you to review the findings and confirm whether you agree.

At this stage, it’s crucial to disagree with the findings until you’ve had an Oracle licensing expert provide a second review of the license audit findings.

Oracle typically issues these reports in the second month of their financial quarter. You then have 30 days to purchase licenses for any shortfalls identified in the reports.

It’s important to note that Oracle’s deadline on these reports is artificial. It’s common for Oracle audit reports to take up to 6 months or more to resolve.


The Oracle License Audit process is complex and requires careful navigation.

By understanding each step in the process and seeking expert advice, you can ensure that your organization is well-prepared to handle an Oracle audit.

Remember, the goal is not just to survive the audit but to emerge from it with a better understanding of your Oracle software usage and a more optimized license management strategy.


  • 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.