Oracle cloud

Oracle SaaS Usage – How to Avoid Unexpected Costs

Oracle SaaS Usage is the monitoring and management of software licenses and access for Oracle’s Software as a Service product.

To avoid unexpected costs:

  • Monitor Usage: Regularly review SaaS usage reports for compliance and optimization.
  • Manage Users: Keep track of authorized versus actual users, adjusting as necessary.
  • Optimize Contracts: Review contracts for alignment with actual usage, avoiding over-licensing.
  • Negotiate Terms: Engage in Oracle Cloud Renewal negotiations to secure favorable terms.

Oracle SaaS Usage: Addressing Non-Compliance

Oracle SaaS Usage

In recent years, Oracle SaaS usage and non-compliance issues have become significant concerns for organizations.

Since 2021, Oracle has implemented monitoring processes to evaluate customer SaaS usage reports before their cloud renewal periods.

At Redress Compliance, we have worked with numerous organizations and found that everyone has been non-compliant with Oracle SaaS and lacks the licenses for their Oracle SaaS environments.

Understanding the Consequences:

  • When your Oracle Account Representative discovers over-consumption, you will be charged for it.
  • Non-compliance can have detrimental effects on your Oracle Cloud Renewal negotiation process.
  • Over-consuming and under-licensed can hinder your ability to secure favorable terms during Oracle Cloud Negotiation.

Achieving a Successful Cloud Renewal:

  • Managing compliance is crucial for a successful cloud renewal negotiation.
  • Addressing non-compliance issues and ensuring proper licensing will improve your negotiation position.
  • Our experts can guide you through achieving compliance, optimizing your Oracle SaaS usage, and positioning yourself for favorable terms during your Oracle Cloud Negotiation.

Contact Redress Compliance today to benefit from our expertise in addressing non-compliance and maximizing the value of your Oracle SaaS environment.

Oracle Cloud ERP Usage Reports

Since 2021, Oracle SaaS customers have been able to log in to their Oracle Cloud Dashboard portal and download the SaaS Service Usage Metric Reports. Before 2021, Oracle sales teams could not access customer SaaS usage reports, and we were unaware of any SaaS usage tracking by Oracle.

Below is a screenshot of what you can find and a description of what you can see when downloading the Oracle Fusion Usage Reports.

oracle saas usage


Subscribed vs Authorized Users in Oracle SaaS Licensing

subscribed vs authorized users

When reviewing your Oracle SaaS licenses, it’s important to distinguish between subscribed users and authorized users. By focusing on the columns indicating “subscribed users” and “authorized users,” you can better understand your licensing needs.

Here’s what you need to know:

  1. Subscribed Users: This column represents the number of Oracle SaaS licenses you possess or have subscribed to.
  2. Authorized Users: This column indicates the additional licenses you may need to acquire. However, it’s important to note that the need for extra licenses is not always certain.

Key points to consider:

  • Oracle often presents a “worst-case” licensing scenario, which may encourage you to purchase more licenses than you need.
  • Evaluating your usage patterns and user requirements can help determine if additional licenses are necessary.
  • Conducting a thorough analysis of subscribed and authorized users can prevent over-licensing and unnecessary expenses.
oracle saas review


Below is a screenshot of the hosted employee non-compliance for Fusion HCM.

oracle saas usage

Recommended Actions for Managing Excessive Authorized Users in Oracle SaaS

subscribed vs authorized users

If you find that your Oracle SaaS environment has an excessive number of authorized users, it’s important to take the following steps to address the issue:

  1. Obtain and Scrutinize Raw Usage Reports:
    • Request and carefully review the raw usage reports from your Oracle SaaS instance.
    • These reports provide valuable insights into usage patterns within your organization, helping you understand how users are utilizing different cloud services.
  2. Identify User Names and Roles:
    • Examine the reports to identify user names associated with each cloud service and their corresponding roles.
    • This analysis will help you identify areas where you may have excessive licensing or redundant role assignments.
  3. Make Informed Decisions:
    • Based on the findings from your usage reports, assess your licensing needs and identify areas where adjustments can be made.
    • Determine which users and roles are essential for your organization’s requirements and make necessary changes to optimize your licensing.

You can align your licensing with your organization’s needs by closely analyzing your Oracle SaaS usage reports and taking appropriate actions. This can result in potential cost reductions and improved efficiency within your cloud environment.

oracle hcm usage

Best Practices for Managing Oracle Cloud Renewals and SaaS Usage

oracle saas best practices

Optimize Your Oracle Cloud Renewals and SaaS Usage with Best Practices

If you’re involved in IT procurement or IT vendor management and want to secure favorable terms during Oracle Cloud renewals, following these best practices is essential:

1. Review SaaS Usage Reports in Advance:

  • Extract and analyze raw reports well ahead of your Oracle Cloud renewal date.
  • Optimize your usage at least 3-6 months in advance to avoid higher costs and unfavorable terms.
  • This proactive approach increases your chances of securing better deals.

2. Monitor Authorized User vs. Subscribed User Numbers:

  • As a Software Asset Manager, regularly download SaaS usage reports.
  • Keep a close eye on the comparison between authorized users and subscribed users.
  • This helps you quickly identify any over-usage or under-licensing situations.

3. Identify and Manage Inactive Users:

  • Schedule monthly reports to identify users who are not actively using Oracle SaaS.
  • Consider revoking licenses from inactive users and reassigning them to others.
  • This helps optimize license utilization and reduce unnecessary costs.

4. Map Users’ Roles and Privileges:

  • Download raw reports and map users’ roles and privileges to their cloud services.
  • This mapping exercise provides clarity on which cloud services are truly necessary.
  • By understanding your usage patterns, you can optimize the services included in your Oracle Cloud renewal.

If you need additional assistance with Oracle SaaS licensing, consider seeking support for the following tasks:

a. Reviewing SaaS Usage Reports:

  • Identify causes of over-usage or under-licensing.
  • Pinpoint areas that require optimization based on the raw reports.

b. Mapping Users to Cloud Services:

  • Analyze the raw reports to map users to each cloud service.
  • Identify cloud optimization opportunities to reduce costs.

c. Designing an Oracle SaaS Licensing Model and Contract:

  • Minimize waste by designing a licensing model and contract tailored to your needs.
  • On average, 35% of all Oracle SaaS contract value is considered wasted, so careful design is crucial.

Take control of your Oracle Cloud renewals and optimize your SaaS usage. Consider implementing these best practices or seeking assistance from our experts to ensure favorable terms, cost savings, and efficient license management.

FAQs on Oracle Cloud Renewals and SaaS Usage Management

When should I review the SaaS usage reports to prepare for Oracle Cloud Renewal negotiations?

Review the SaaS usage reports and extract raw data at least 3-6 months before your Oracle Cloud Renewal is due to optimize usage and improve your negotiation position.

How can a Software Asset Manager monitor over-usage or under-licensing?

Regularly download SaaS usage reports to keep track of authorized users versus subscribed users, which helps identify over-usage or under-licensing situations.

How can I identify and manage inactive users in Oracle SaaS?

Schedule monthly inactive user reports finding users not actively using Oracle HCM. Consider revoking licenses from inactive users and reassigning them to other users.

How do I determine which cloud services my organization needs?

Download the raw reports and map users’ roles and privileges to their respective cloud services. This will help you understand the necessary services and optimize your Oracle Cloud Renewal package.

What support is available for addressing Oracle SaaS licensing issues?

Review your SaaS usage reports and identify the causes of over-usage or under-licensing. Examining the raw words, mapping users to each cloud service, and pinpointing optimization opportunities to reduce costs.

Oracle Cloud Contract Assistance for Optimal Results

Oracle SaaS Usage and Cloud Renewal Service

We offer comprehensive support to ensure success with your Oracle Cloud contract. Our services include:

  1. SaaS Usage Analysis:
  • Evaluating your current usage patterns, subscribed users, and authorized users.
  • Identifying any instances of over-usage or under-licensing that require attention.
  1. Cloud Renewal Preparation:
  • Reviewing and optimizing your SaaS usage well in advance (3-6 months) of the renewal period.
  • Strengthening your negotiation position by ensuring you clearly understand your usage and requirements.
  1. Inactive User Management:
  • Scheduling monthly reports to identify inactive users within Oracle Fusion.
  • Efficiently reallocating licenses to active users and optimizing your license utilization.
  1. Cloud Service Optimization:
  • Mapping user roles and privileges to their corresponding cloud services.
  • Determining which services are essential for your organization’s needs.
  • Optimizing your Oracle Cloud Renewal package to align with your requirements.
  1. Licensing Model and Contract Design:
  • Developing a tailored Oracle SaaS Licensing Model and Contract to minimize waste.
  • Taking into account that, on average, 35% of Oracle SaaS contract value is often wasted.
  • Maximizing cost efficiency and ensuring your contract aligns with your specific needs.
  1. Ongoing SaaS Usage Monitoring:
  • Regularly downloading SaaS usage reports monitoring authorized users versus subscribed users.
  • Swiftly addressing any over-usage or under-licensing issues that arise.
  1. Oracle Cloud Renewal Negotiation Support:
  • Providing expert guidance and assistance during the renewal process.
  • Helping you navigate negotiations for favorable terms and discounts.

Contact Redress Compliance Today

Contact us today if you seek expert assistance to optimize your Oracle Cloud contract and achieve the best outcomes.

Our team of specialists is ready to assist you in managing your Oracle SaaS usage, preparing for renewals, and securing favorable contract terms. Let us help you streamline your Oracle Cloud experience for maximum value and efficiency.

Author

  • 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.

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