Oracle SaaS Usage – How to Avoid Unexpected Costs

Oracle SaaS Usage involves monitoring and managing 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

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.

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.

Subscribed vs Authorized Users in Oracle SaaS Licensing

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.

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

Recommended Actions for Managing Excessive Authorized Users in Oracle SaaS

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.

Best Practices for Managing Oracle Cloud Renewals and SaaS Usage

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.

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