Oracle Verified SAM Program Pros and Cons

Oracle Verified SAM Program Pros and Cons

Executive Summary: The Oracle Verified Software Asset Management (SAM) Program is a new initiative that enables Oracle to work with certified partners to help enterprises effectively manage their Oracle licenses.

It promises proactive compliance support, expert guidance, and potential audit relief. However, participation comes with trade-offs – including ongoing costs, the requirement to share data with Oracle, and concerns about independence.

This advisory will examine the pros and cons of the Oracle Verified SAM Program for enterprise ITAM professionals, providing practical guidance on determining whether it’s the right approach.

Overview of the Oracle Verified SAM Program

The Oracle Verified SAM Program (often called the VSAM program) is a formal collaboration between Oracle and select Software Asset Management partners.

These Oracle-approved partners conduct regular license reviews (baselines) of a customer’s Oracle deployments and produce an Effective License Position (ELP) – essentially a detailed report of what licenses you own versus what you’re using.

In theory, this program is meant to streamline Oracle license management by outsourcing compliance checks to trusted third-party experts under Oracle’s umbrella.

Organizations opt in voluntarily and engage an Oracle-verified partner to perform ongoing monitoring of Oracle Database, Middleware, and E-Business Suite usage (initially, the program focuses on these major product lines).

Oracle positions VSAM as a proactive alternative to surprise audits, giving customers better visibility into their license compliance.

In practice, joining the program entails signing up for annual license assessments and sharing your ELP data with Oracle in exchange for potential benefits, such as audit exemptions.

It’s important to understand how this arrangement works and what it requires before deciding to participate.

Key Program Features:

• Verified Partners: Oracle designates certain SAM service providers as “verified,” meaning they have training in Oracle’s licensing and use Oracle-provided scripts/tools.
• Regular Baseline Reviews: You’ll undergo an initial in-depth license deployment analysis, then periodic (often annual) reviews to keep your Oracle software usage in check.
• Data Sharing: The partner typically shares summary findings (your license position) with Oracle. This transparency is intended to identify and address any compliance issues promptly.
• Audit Waiver Possibility: If your baseline indicates compliance (or once you address any identified gaps), Oracle may grant a temporary audit exemption for those products, renewable as long as you remain in the program and compliant.

Promised Benefits: Why Consider Oracle’s VSAM Program

Oracle markets the Verified SAM Program as a way to gain control and peace of mind in managing Oracle licenses.

For IT Asset Management teams at large enterprises, the program’s pros can be appealing:

• Stronger Compliance Assurance: With scheduled reviews by Oracle-savvy experts, companies receive regular checks on Oracle license compliance. This reduces the risk of unknowingly drifting out of compliance. Usage issues (for example, an Oracle database option enabled without a license) can be identified by the partner and addressed proactively, rather than being discovered during a surprise audit. In essence, the program acts as a continuous license audit as a service – ideally catching problems internally first.
• Access to Oracle Expertise: Oracle’s verified partners are trained specifically in Oracle’s complex licensing rules and policies. Participants gain authoritative guidance on how to interpret Oracle’s licensing metrics, optimize license usage, and understand contract terms. This can be valuable if your in-house licensing knowledge is limited. The partner can advise on complex areas (such as Java licensing changes or VMware virtualization rules) with Oracle’s perspective in mind. For example, if you’re planning a move to Oracle Cloud or consolidating data centers, the partner can help model license impacts with an insider understanding of Oracle’s approach.
• Potential Audit Relief: One of the biggest selling points is the possibility of audit exemptions. Oracle may agree not to initiate any official license audits on the products covered by the program, provided you remain in good standing (i.e., you complete the annual reviews and address any compliance gaps). This can alleviate the constant fear of receiving unexpected Oracle audit letters. Avoiding a formal audit can save significant internal effort and distraction. In effect, the regular partner-led review replaces Oracle’s audit – a more predictable and collaborative process, rather than a combative one. However, as we’ll discuss, these waivers are conditional, not guaranteed.
• Transparency and Optimization: By thoroughly mapping deployments and usage, the program gives ITAM teams clearer visibility into their Oracle environment. You’ll know exactly what’s installed and running, and how that compares to entitlements. This transparency can highlight opportunities to optimize license usage – for instance, identifying unused installations to decommission, or finding more cost-effective license allocations. Over time, this can maximize ROI on Oracle investments. The partner might also provide reports or dashboards that make it easier to communicate Oracle license status to executives, improving governance.
• Simplified Cloud Transition Planning: According to program partners, maintaining an up-to-date Oracle license baseline can facilitate cloud migration planning. Suppose you’re considering moving workloads to Oracle Cloud Infrastructure or other clouds. In that case, the data from the SAM review can inform what licenses you’ll need in the cloud or which on-premise licenses can be recycled. Essentially, license clarity helps avoid over-provisioning when shifting to cloud services. This is a secondary benefit, but can be valuable given Oracle’s cloud licensing nuances.

In summary, the Oracle Verified SAM Program’s advantages center on proactive compliance management, expert support, and possibly reducing the adversarial aspect of Oracle license audits.

It offers a structured, Oracle-endorsed way to stay on top of your license position – which, for some organizations, can translate to fewer surprises and more confidence in their Oracle asset management.

Obligations and Costs of Participation

Despite the advertised benefits, ITAM professionals must enter with an open mind about what participation in the Verified SAM Program entails.

It is not a free or hands-off safety net – it comes with significant obligations and costs that need to be weighed against the benefits:

• Annual Baseline Fees: To join the program, you engage an Oracle-verified SAM partner (such as a specialized consulting firm) who will perform the initial baseline license assessment for a fee. There is no direct fee to Oracle to enroll, but the customer pays for the partner’s services. Depending on the size and complexity of your Oracle environment, these assessments can be costly (e.g., large enterprises with hundreds of Oracle deployments will pay more). Additionally, to maintain audit exemptions, you must undergo an updated review at least once every 12 months, incurring recurring fees. Over the years, these ongoing consulting costs accumulate and should be factored into the program’s budget. Organizations need to consider if the expense of yearly reviews is justified by the value received (for instance, compare it to the potential cost of an Oracle audit or the cost of internal resources to manage licenses).
• Resource and Time Commitment: Coordinating regular SAM engagements also requires internal effort. Your IT and asset management teams will need to collaborate with the partner consultants by providing deployment data, granting access to systems for data collection, and clarifying the usage of Oracle products across the company. While partners do a lot of the heavy lifting with their tools, expect to dedicate internal staff time to assist in the discovery process and to remediate any compliance issues found. In essence, you’re agreeing to an audit-like process on an annual basis; this can be resource-intensive, although arguably more controlled than a surprise audit.
• Mandatory Data Sharing with Oracle: As part of the VSAM program, the results of your license position analysis are shared back with Oracle (typically through Oracle’s LMS or GLAS teams). This full transparency means Oracle will know exactly where you stand in terms of compliance. While Oracle does not see the raw data in every case (some partners claim only a summary is shared), any major shortfall or compliance gap uncovered will effectively be visible to Oracle. This is a double-edged sword: transparency is intended to build trust and secure an audit waiver, but it also exposes your vulnerabilities. If your ELP reveals, say, 20 unlicensed Oracle Database installations, Oracle will expect you to resolve that (likely by purchasing licenses or removing them). There is no option to quietly fix issues over a long period; the program compels prompt compliance.
• No Guaranteed Audit Waiver: It’s crucial to understand that Oracle’s promise of audit relief is not ironclad. Audit waivers under the program are granted at Oracle’s discretion and typically require annual renewal. If Oracle sees serious compliance lapses, it could decline to issue or renew a waiver. Additionally, the audit exemption typically only covers the specific products and environments that are reviewed. For example, Oracle might agree not to audit your baselined Database and Middleware environments, but that doesn’t necessarily cover other Oracle products (or new deployments made outside the review). There have been cases where companies in the program still faced Oracle scrutiny – sometimes, Oracle may initiate a formal audit after the grace period if the findings indicate significant issues. The bottom line: do not assume you have blanket immunity from audits; you must continuously meet Oracle’s criteria.
• Long-Term Commitment: Once you opt in, there is an expectation of continuous engagement. If you were to stop the annual reviews, any audit protection would lapse, possibly making you a target for an audit if Oracle suspects issues. This structure can create a de facto long-term commitment to use the partner’s services. It can also refer to hidden costs, such as additional remediation work. For instance, if the baseline reveals that you need to deploy Oracle’s official scripts or additional tooling to gather data, you may need to invest in those. Or, if the review suggests buying more licenses (which is common), that’s an unplanned expense. Essentially, participating is not a one-time project but an ongoing program in its own right.

Table: Oracle Verified SAM Program vs. Independent License Management

Risks and Downsides to Weigh

For all its touted advantages, the Oracle Verified SAM Program comes with notable cons and risks that enterprise ITAM professionals should carefully evaluate.

Joining this program is not a neutral act – it shifts the dynamics of how you manage Oracle licenses, often in ways that favor Oracle’s interests.

Key drawbacks include:

• Loss of Independence: When you work with an Oracle-verified SAM partner, you’re effectively inviting Oracle’s oversight into your IT shop. These partners are not fully independent advisors; they have been vetted and trained by Oracle and must follow Oracle’s methodologies. Many use Oracle-provided scripts and tools to collect data. This means the partner’s findings will mirror what Oracle itself would find in an audit. While that consistency can be good for accuracy, it also means you’re less likely to get creative or customer-favorable interpretations of ambiguous license situations. There is an inherent conflict of interest: the partner’s role is to keep both Oracle and the customer satisfied. If a tricky compliance grey area arises, can the partner truly advocate for you, or will they default to Oracle’s strict interpretation? Critics of the program warn that “Verified SAM” is essentially an Oracle audit in disguise, albeit under the guise of an advisory. It’s audit-lite, running on Oracle’s terms.
• Oracle’s Commercial Interests First: Remember that Oracle launched this program for a reason – it ultimately helps Oracle protect and increase its licensing revenue. By having customers regularly report their license usage, Oracle gains unparalleled transparency into who may need more licenses or who might be violating terms. The program can thus act as a revenue driver: many participants find that after the baseline, they have to purchase additional licenses or subscriptions to address shortfalls immediately. For example, one common outcome is the discovery of Java installations that now require paid subscriptions. The VSAM partner will flag these, and Oracle will expect the customer to sign a Java license agreement promptly. Oracle essentially uses the partner’s assessment to drive sales, and the customer, having voluntarily provided all the data, is in a weaker position to negotiate discounts. In some cases, companies have been double-charged – they have paid for the partner assessment, only to be told they must pay Oracle a large sum for compliance gaps that were found.
• Audit Pause, Not Immunity: The audit waiver aspect can provide a false sense of security. Oracle typically agrees not to audit a customer while they are actively engaged in a Verified SAM review and have recently completed a baseline. However, this is often just a temporary pause (e.g., 12 months). If major issues are identified, Oracle can leverage those findings after the specified period. In effect, by joining the program, you might delay an audit, but you also hand Oracle a comprehensive report of any compliance problems. After the “no-audit” period, Oracle knows exactly what to come after. For instance, if your baseline shows 100 processor cores of Oracle Database unlicensed, Oracle can prepare an official audit or sales campaign targeting those very findings as soon as the grace period expires (or even encourage you to true-up immediately under the threat of an audit). Far from sparing you, the program could simply schedule your audit for later, leaving you to do most of the legwork.
• Reduced Negotiation Leverage: A subtle but critical drawback is how sharing your Effective License Position can weaken your bargaining power. Normally, when negotiating a new Oracle contract or renewing support, customers have the advantage that Oracle might not know their exact usage – you could negotiate from a position of uncertainty or use an impending audit as a negotiation point. Once you’ve laid your cards on the table via the VSAM program, Oracle gains the upper hand. They know precisely what you need to buy or where you are non-compliant, removing any mystery. This could lead to less favorable deals. You may find Oracle less willing to offer discounts or concessions because, armed with your data, they see a captive demand. Essentially, you sacrifice the information asymmetry that sometimes benefits customers in negotiations.
• Long-Term Costs and Lock-In: Participating can become a semi-permanent commitment. Not only are there yearly fees to consider, but over-reliance on the Oracle partner might cause you to under-invest in your own SAM capabilities. If one day you wanted to exit the program and manage independently, you’d need to ensure your team and tools are up to the task. There’s also the possibility of switching costs associated with partner changes. If you become dissatisfied with one verified partner, switching to another or taking an independent approach may require redoing a baseline from scratch. Moreover, whenever you leave the Oracle program, you become immediately audit-eligible again. This “Hotel California” effect (easy to check in, hard to leave) means you should be prepared for a long-term relationship if you join.
• Use Case Limitations: The current scope of Oracle’s Verified SAM Program covers specific product sets (Database, Middleware, and E-Business Suite as of now). If your Oracle footprint extends beyond these (e.g., Oracle Cloud services, SaaS apps, or other on-premises products not within the program scope), the program won’t cover them. You’d still face audits or compliance tasks for those areas. So the coverage is not comprehensive. Additionally, suppose your organization is already highly disciplined with license management or uses robust SAM tools internally. In that case, the incremental benefit of Oracle’s program might be limited – you might be paying for advice or data you largely already have.

Actionable Insight: Before signing up, conduct a risk-benefit analysis specific to your situation.

List out what problems you expect the Oracle Verified SAM Program to solve for you (e.g., fear of audits, lack of internal Oracle license expertise) versus the risks (cost, losing control of data, potential to be pushed into purchases).

For some organizations with very limited SAM resources, the structured guidance and audit peace of mind may outweigh the downsides. For those with strong internal processes, the program may introduce more risk than it mitigates.

Make sure executive stakeholders understand that this is not just a routine service engagement – it’s a strategic decision about how you manage one of your major IT vendor relationships.

Alternatives and Best Practices Beyond the Program

Joining Oracle’s own SAM program is just one approach to handling license compliance.

Enterprises should also consider alternative strategies and complementary practices to achieve the same goals of compliance and cost optimization, often with more control:

• Independent SAM Consultancies: Instead of Oracle-verified partners, you can engage independent Oracle license advisors or third-party SAM firms. Many such firms (who are not in Oracle’s official program) specialize in Oracle audits and license optimization but explicitly operate on the customer’s side. They can perform similar baseline reviews and help you understand your Effective License Position without automatically reporting it to Oracle. The benefit is that you get expert advice and can remediate issues privately. These independent advisors often have former Oracle licensing experts on staff; however, they are not obligated to inform Oracle of your status. If they find compliance gaps, they will help you fix or strategize about them before you approach Oracle. This path can maintain your negotiating leverage — you only disclose what and when you choose to, Oracle. Ensure that any third-party you use has a strong track record and is truly independent (verify that they aren’t also an Oracle reseller to avoid conflicts of interest).
• Robust Internal SAM Programs: Investing in Your Own Software Asset Management Capabilities Can Pay Off. Ensure you have the right SAM tools configured for Oracle environments – for example, tools that can accurately track Oracle Database options usage, middleware deployments, and Java installs. Train your IT asset managers on Oracle’s specific rules (like licensing by core factors, virtualization policies, named user minimums, etc.). By running regular internal audits, such as every 6 or 12 months, you can identify issues on your own. Internal audits may include reviewing usage versus license entitlements, cleaning up unused software, and verifying that configurations comply with license terms. While it requires discipline, a mature internal SAM practice lets you enjoy many of the same benefits (compliance assurance, optimization insights) without automatically sharing everything with the vendor. It also positions you strongly if an official audit does occur, as you’ll be well-prepared with data.
• Targeted External Audits (as needed): Another middle path is to occasionally bring in outside experts for a one-time review of an Oracle license or an audit rehearsal. Some companies do this before a renewal or major purchase negotiation – essentially performing a simulated Oracle audit using independent experts. This can highlight any weak spots to fix proactively. Because it’s not a continuous program, you engage help when you need it (perhaps every couple of years or before major contract events). This is more ad-hoc than Oracle’s program, but it can be cost-effective and low-profile.
• Maintain Negotiation Leverage: Whether or not you join VSAM, always keep negotiation strategy in mind. If you are in the program, you may negotiate with Oracle on how findings are handled – for example, ensuring that minor shortfalls can be corrected without immediate penalty, or that you have flexibility in purchasing through your preferred reseller. If you remain independent, utilize your compliance knowledge as a tool – you might choose to disclose a clean internal audit report to Oracle to deter them from auditing, or, conversely, remain quiet and let Oracle come to the table with incentives. The key is that information about your Oracle usage is powerful; manage it strategically.
• Benchmark Vendor Programs: Oracle isn’t the only vendor with a verified SAM partner scheme. IBM’s Authorized SAM Provider (IASP) program is a similar concept – interestingly, IBM’s program offered certain incentives to customers, like some audit fee waivers or support benefits, to encourage participation. By comparing with IBM’s approach or those of other vendors, you can gauge if Oracle’s offering is generous or lacking. For instance, if Oracle’s program doesn’t provide tangible rewards (like discounts or service credits) for the effort you put in, you might question whether it’s worthwhile. Always ask, “What’s in it for us?” beyond just avoiding an audit.

In summary, enterprises have options to manage Oracle licenses without relinquishing control.

The best practice is often a balanced approach: maintain strong internal controls and seek independent advice as needed.

If you do engage with Oracle’s program, consider doing so on a limited scope or trial basis, and concurrently build up your capabilities. That way, you are not solely reliant on Oracle’s channel for compliance management.

Recommendations (Practical Tips for ITAM Leaders)

Considering the pros and cons of the Oracle Verified SAM Program, here are some expert tips and recommendations for enterprise IT asset managers:

• Conduct a Readiness Assessment: Before opting in, evaluate your current Oracle license management maturity. If you identify significant gaps in expertise or process, address them internally first. This will put you in a stronger position whether you join the program or not.
• Vet the SAM Partner Carefully: If you decide to proceed with a verified partner, choose wisely. Interview potential partners about their approach. Ask if they also resell Oracle licenses or receive incentives from Oracle – if so, be cautious of potential bias. Look for a partner with a solid reputation for client advocacy and deep Oracle knowledge. The right partner should acknowledge the program’s limits, not just sell you on all positives.
• Clarify Data Use and Confidentiality: Have a frank discussion (and get it in writing) about what data will be shared with Oracle. Some partners claim that only high-level summaries are sent to Oracle – ensure you understand what that means. If possible, negotiate that you see and approve any report before it’s sent to Oracle. The more control you maintain over your data, the better.
• Negotiate Program Terms: Treat the decision like a mini contract negotiation. For example, see if you can get a written commitment from Oracle on the audit waiver duration and scope (which products/regions it covers). Negotiate the partner’s fees as well; multi-year engagements might offer discounts. Also, clarify what happens if a compliance issue is found – do you get a grace period to fix it? Having these terms clear can prevent surprises later.
• Don’t Rely Solely on Audit Waivers: Even in the program, continue good license hygiene. Don’t assume “we won’t be audited, so we’re safe.” Keep records organized, ensure new Oracle deployments undergo internal license approval, and maintain documentation of all changes. If Oracle ever questions something, you’ll be ready to respond with or without an official audit.
• Balance Oracle’s Advice with Independent Input: There’s no rule saying you can’t use independent advisors alongside the Oracle program. Some companies have a third-party consultant double-check the partner’s findings or sit in on reviews to provide a second opinion. This can help ensure you’re not blindly accepting Oracle’s interpretation if there’s room for negotiation or alternative solutions.
• Plan for Financial Impacts: Include a budget line for this program in your IT spend projections. Account for the partner’s annual fees and likely true-up costs for license gaps. This might involve setting aside funds for unplanned Oracle license purchases each year as a precaution. It’s better to anticipate those costs than to be caught off guard if the SAM review uncovers a need to purchase $ 500,000 in licenses.
• Reassess Periodically: If you join, treat it as a year-to-year decision. After each annual cycle, evaluate whether the benefits (e.g., no audits, better clarity) outweigh the costs and risks. It’s possible that the value proposition may change over time (for instance, if Oracle expands the program or if your internal capabilities improve). Be ready to pivot if needed – participation isn’t legally binding forever, and you can exit later if it no longer makes sense (just be prepared for Oracle to possibly come knocking if you do).

Checklist: 5 Actions to Take

For organizations evaluating the Oracle Verified SAM Program, here’s a simple step-by-step checklist to guide your approach:

1. Map Your Oracle Footprint: Document all Oracle products in use, their deployment footprint (where and how they’re running), and current license entitlements. This baseline will help you understand your risk areas and is essential, whether you choose to participate in the Oracle program or not.
2. Assess Internal Capabilities: Review your internal SAM processes for Oracle. Do you have the tools and expertise to manage licenses effectively? Identify gaps – for example, if you cannot track Oracle Database option usage, note that. This self-assessment will highlight areas where you need help and determine if those needs can be met by a verified partner or through other means.
3. Consult Stakeholders: Engage procurement, legal, and IT leadership in the decision. Explain the trade-offs of the VSAM program. Ensure that everyone understands that joining means sharing data with Oracle and may result in purchases. It’s essential that leadership buys into the approach, as it impacts contract and budget strategy.
4. Explore Both Paths: In parallel, reach out to an Oracle Verified SAM partner and an independent Oracle license advisor (one who is not part of Oracle’s program). Get proposals or at least informal opinions from each on how they’d help you. Compare the advice, cost, and tone. This will give you a concrete understanding of what you can expect from the Oracle route versus an independent route, making the abstract pros/cons more tangible.
5. Make an Informed Decision: Weigh the information gathered and decide on a course of action. If you choose the Oracle Verified SAM Program, proceed to select a partner and define the engagement scope (which products, timeline, etc.). If you choose not to join, implement an alternative plan – for example, schedule an independent audit or invest in a SAM tool deployment to address the identified gaps. Document the rationale for your decision so you can revisit it later if circumstances change.

By following this checklist, you ensure that your decision on Oracle’s SAM program is deliberate and well-supported rather than reactive.

FAQs

Q: Does the Oracle Verified SAM Program guarantee I won’t be audited?
A: Not guaranteed. The program can earn you an Oracle audit exemption for certain products as long as you comply with program requirements (like completing annual reviews). However, these waivers are discretionary and time-limited. Oracle can still choose to audit if major compliance issues are detected or if you leave the program. Always treat the situation as “audit deferred” rather than fully eliminated.

Q: How much does the VSAM program cost, and who pays for it?
A: There is no fee paid to Oracle to join. The costs refer to the fees you pay the chosen SAM partner for their services. This typically includes an initial baseline assessment and yearly follow-up assessments. Fees vary based on the size of your Oracle environment and the partner’s rate card. As a rough estimate, mid-sized enterprises might spend tens of thousands of dollars annually on this; large global firms could spend even more. Also, remember that any compliance gaps found could result in costs to purchase additional Oracle licenses.

Q: Will Oracle get access to all our license usage data if we participate?
A: Oracle will receive the results (summary) of your license position – essentially a report of what you have versus what you need. Partners usually don’t send raw data dumps of your entire environment to Oracle, but even the summary can reveal where you are under-licensed. Oracle’s Global Licensing team retains the right to request more details if needed. The program’s intent is not to feed all your data directly to Oracle all the time, but you should assume that anything significant the partner finds will make its way to Oracle’s knowledge base at least at a high level.

Q: What if the verified partner finds we’re out of compliance?
A: The partner will report that in the baseline results and typically work with you on a remediation plan. Remediation often means buying the necessary licenses or adjusting your usage. The good news is that you discover this internally rather than via an aggressive audit. The bad news is that Oracle will expect a timely fix. In many cases, Oracle (through the partner) will push for a quick purchase – for example, they might suggest signing a ULA (Unlimited License Agreement) or a cloud subscription to cover the shortfall. You do have the right to explore different ways to resolve the gap (like uninstalling software or moving workloads), but once Oracle is aware, the clock is ticking. An independent advisor could help you weigh options if you’re faced with a big compliance finding.

Q: Can we achieve the same benefits without joining Oracle’s program?
A: To a large extent, yes. By investing in good SAM tools, training your team, and possibly hiring independent experts, you can maintain compliance and optimize licenses internally. Many companies successfully manage Oracle licenses by conducting their periodic audits and staying current on Oracle’s policies. The main thing you might miss is the formal audit waiver – Oracle typically doesn’t promise not to audit you unless you’re in their program. However, if you do a great job internally, you might naturally lower your audit risk (Oracle tends to focus on customers who appear at risk or have never done a self-review). In short, Oracle’s program is one path to compliance assurance, but it’s not the only path. It comes down to your organization’s capabilities and comfort with vendor involvement.

Read more about our Oracle License Management Services.

Do you want to know more about our Oracle Advisory Services?

Please enable JavaScript in your browser to complete this form.

Name *

First

Last

Email *

Company

Message *

Submit