Audit Defense advisory engagement
Advisory / Audit Defense

Software license audit defense. Led by former vendor auditors, settled on evidence.

Redress Compliance provides software license audit defense led by former Oracle and IBM auditors. We control the response, rebuild the claim on your evidence and negotiate the settlement for Oracle, IBM, SAP, Microsoft and Broadcom audits, on a fixed fee.

Get a second opinion on your quote See the Audit Readiness Checklist
500+Enterprise Clients
$2B+Under Advisory
Fixed fee audit defense. Scoped to the audit and agreed up front. We never bill by the hour, and any follow on negotiation can run at 25 percent of what we save you.
Home/Audit Defense
500+ Enterprise Clients Industry Recognized $2B+ Under Advisory 11 Vendor Practices 100% Buyer Side Independent
What we do

What is software license audit defense?

Software license audit defense from Redress Compliance is led by former vendor auditors who now work only for buyers. When Oracle, IBM, SAP, Microsoft or Broadcom opens an audit, we control the response, rebuild the claim on your evidence and negotiate the settlement. The fee is fixed up front, and you pay only what the evidence supports.

Software license audit defense starts the day a vendor or its auditor makes contact: a data request, a questionnaire, or findings with a settlement figure attached. The opening number is built on worst case assumptions, and how the first weeks are run decides where it lands.

Our founders ran audit and licensing engagements on the vendor side, at Oracle license management services and at IBM. They know how a claim is assembled, which assumptions inflate it, and which evidence takes it apart.

General counsel and legalCIO and IT leadershipIT asset and SAM managersCFO and financeRisk and audit committees
What goes wrong

Why do software audit claims start so high?

They start high because the vendor sets every assumption in its own favor until someone challenges it. The same patterns inflate claims across vendors:

  • Worst case counting: opening claims priced at list, on full capacity or full headcount assumptions, and timed to renewals.
  • Open scope: letters that do not fence entities, countries, period or products, so every silence resolves in the auditor's favor.
  • Early disclosures made without protocol, which become the foundation of the claim.
  • Interpretations presented as fact, and findings steered toward the purchase the vendor wanted anyway.
  • Settlements without release language, leaving the claim free to regenerate at the next cycle.

Compliance gaps also accumulate before any letter: virtualization, disaster recovery and metric changes create exposure nobody measured, and evidence sits scattered, so even correct positions cannot be proven.

Who leads your defense

Who defends your audit, and what have they seen?

A partner leads every audit defense from the first letter to the signed settlement. Both founders worked audits from the vendor side before founding Redress, which is why we read the letter the way the auditor wrote it.

Fredrik co founded Redress Compliance in 2018 and serves as Group CEO. His career began at Oracle, running audit and compliance engagements for Fortune 500 customers in license management services, followed by senior commercial roles at IBM and SAP. He leads the Oracle practice and the most complex multi vendor engagements.

Morten co founded Redress Compliance after senior commercial and licensing roles at IBM and Oracle. At IBM he ran enterprise licensing and audit engagements for some of the largest financial services and industrial accounts in EMEA. He leads the Vendor Shield subscription and partners on the largest IBM, Oracle, and cross publisher renewals.

Vendor specialists join where the estate needs them, including Piaras McDonnell (IBM Practice Lead), who leads mainframe and middleware audit defense. See the Redress management team.

How we do it

How does an audit defense run, step by step?

It runs protocol first: control the channel, build your own number, then challenge theirs. The response protocol is delivered within 3 business days of engagement start.

Step 01
Control the channel
Acknowledge without commitment, route every response through review, and agree the audit scope in writing before any data moves.
Step 02
Build your own position first
Entitlements reconciled against deployment from your records, so you know the real exposure before the auditor's number frames it.
Step 03
Challenge the findings
Each finding tested against the contract and the evidence. Out of scope items are removed, not negotiated, and interpretations are contested in writing.
Step 04
Settle and close it
The residual settled commercially, often inside a renewal, with release language so the same claim cannot return.
DeliverableWhat it contains
Response protocolWho speaks to the auditor, what is shared, in what order, and what is never volunteered.
Scope letterThe written perimeter: entities, countries, period and products covered by the audit.
Independent license positionYour own entitlement and deployment count, built before any data leaves the building.
Written finding responsesEach claimed finding answered with contract language and evidence.
Settlement reviewThe settlement terms and release language checked before signature.
2025 and 2026

How have software audits changed in 2025 and 2026?

The auditors changed, and so did what they count. These are the shifts documented in current Redress research:

  • New leaders: in a Redress survey of 118 enterprises, Broadcom led the audit table at 33 percent, followed by Autodesk at 29, Microsoft at 27 and Oracle Java at 25. Vendors in the middle of subscription transitions now lead the table.
  • Oracle Java: Oracle now audits Java SE on employee count, not installs, under the Universal Subscription. See the Oracle Java licensing guide for 2026 and Oracle Java audit defense.
  • Microsoft: the 2026 audit reads your cloud tenant before your servers, and opening claims overstated the gap by 20 to 40 percent, mostly on server cores and idle cloud seats.
  • SAP: audit volume rose into 2026, with RISE conversion, indirect access and named user reclassification driving the largest findings. The SAP license audit process for 2026 explains each phase.
  • IBM: ILMT was missing or stale in two of three estates we reviewed, which turns sub capacity rights into a full capacity bill.

One constant held: audits where the defense engaged in week one settled 15 to 25 percent lower than those where the buyer waited 30 days or more.

Client results

What have our audit defenses achieved for clients?

Four published audit outcomes across Oracle Java and IBM, each documented on its case study page:

See all 281 case studies

Your options

Who should defend a software audit: an advisor, a Big Four firm, a reseller or your own team?

The best defender is one with no stake in what you buy to settle. A neutral comparison of the usual options:

QuestionIndependent advisor (Redress)Big Four consultancyReseller or vendor partnerIn house team
IndependenceZero vendor affiliations, no reseller agreements, no referral feesAdvisory sits alongside implementation practices and publisher alliance programsCommercial partner of the vendor, paid through margin or partner programsFully yours
Conflicts of interestNone from vendor revenue; paid only by the clientImplementation and alliance revenue on the same products can pull against a hard positionEarns more when you buy moreNone, though bandwidth is limited
Vendor specific experienceFounders ex Oracle, IBM and SAP; practice leads ex Microsoft and ex SAP; 11 vendor practicesBroad coverage; depth varies by team and engagementDeep product knowledge, seen from the selling sideDeep on your own estate; sees each vendor event once every few years
Market view for audit settlementsBenchmarks from comparable closed deals across 500+ enterprise clientsVaries by practiceSees pricing from the vendor sideYour own history and last quote
How fees workFixed fee agreed up front, or 25 percent of savings on negotiation work; never hourlyAdvisory fees, often alongside implementation workOften no separate fee; paid through the transactionSalary and opportunity cost

Our independent versus Big Four comparison covers the conflict questions to put to any firm before an audit.

Fees

How much does software license audit defense cost?

Audit defense runs on a fixed fee, scoped to the vendor and the audit and agreed up front. The cost is known on day one, while the claim is not.

We never bill by the hour, so a long audit does not raise the fee. If the settlement turns into a renewal or purchase negotiation, that part can run on a success fee. It is 25 percent of what we save you, with nothing to pay if we save nothing.

Frequently asked questions

What do buyers ask about audit defense?

What should we do first when a software audit letter arrives?

Control the information flow: acknowledge the letter professionally, commit to nothing, and route every response through review. Our response protocol is delivered within 3 business days of engagement start.

How much does software license audit defense cost?

Audit defense runs on a fixed fee, scoped to the audit and agreed before we start, so the cost is known while the claim is not. We never bill by the hour. If the settlement rolls into a renewal or purchase negotiation, that negotiation can run on a 25 percent success fee.

Which vendor audits do you defend?

We defend Oracle and Java, IBM, SAP, Microsoft, Broadcom VMware, ServiceNow and the wider stack. Each vendor has a dedicated audit defense service behind this practice, with its own specialists.

How much do software audit claims usually shrink?

Opening claims usually shrink materially once they meet evidence. Published outcomes include a $20M Kroger Java claim and a $4.7M Avis Budget Group claim, both closed at zero. A New York financial institution cut claimed IBM exposure by 90 percent.

How long does an audit defense take?

It depends on the vendor and the scope, but the first week matters most. The Avis Budget Group Java claim went from $4.7M to zero in ninety days. Redress research found that defenses started 30 days or more after the letter settled 15 to 25 percent higher.

Should we share the data the auditor asks for?

Share data only after scope is agreed in writing and your own position is built. Every matter in our Java research that closed without payment had a written, dated scope acceptance on file before deployment data moved.

Can we get audit ready before a letter arrives?

Yes, and it changes the first week of any audit. We build an effective license position per vendor, sequence remediation on your timing, and assemble the evidence file that makes the position defensible.

Are you independent of the vendors that audit us?

Yes: zero vendor affiliations, no reseller agreements and no referral fees. No audit outcome and no resulting purchase earns us anything from the vendor.

Advisory team preparing a vendor negotiation

Put the discipline on your side

Baselines, benchmarks, and execution from the practice behind 500+ enterprise clients.

Negotiation intelligence, monthly

One letter a month. Negotiation moves, audit signals, and price book shifts.