COMPANIES have been using business software for decades to maximize productivity within its various departments, divisions, functions, and processes. Today, organizations invest in an ecosystem of software applications — and making the most of that investment is critical.

One of the largest business software providers in the world is Oracle. The company started in June 1977 as a database company, and over time, has evolved into a cloud-based applications and platform services business.

Over the course of its lifetime, the company has made 100+ acquisitions. For example, Oracle purchased PeopleSoft for US$10.3 billion in 2005, Siebel Systems for US$5.85 billion in 2006, Hyperion Solutions for US$3.3 billion in 2007, Sun Microsystems for US$7.4b in 2010, and NetSuite for US$9.3 billion in 2016 — among various others. It should be noted the Sun acquisition included the Java programming language, for which Oracle has just announced licensing implications for customers for the first time.

As a result of these deals, Oracle was able to expand its portfolio of offerings to customers. And although clients have been able to benefit from a more integrated ecosystem, the multiple acquisitions have made Oracle’s licensing terms quite complicated to understand.

It’s interesting to note that it’s not only the ‘acquired’ customers who are perplexed by the contractual complexity and governing terms that are constantly updated by Oracle, but also legacy customers who started their relationship with the company decades ago, slowly expanding their investment in Oracle products as the company expanded their portfolio of offerings.

As Oracle’s licensing models have evolved over time, the metrics used to issue these licenses vary. Hence, customers must be very careful about how they use their licenses. One such example is Oracle’s 2009 Database Release 2, available as Enterprise Edition, Standard Edition, Standard Edition One, Personal Edition and Express, all with their individual various restrictions and obligations. Oracle’s applications, middleware, and hardware all come with unique licensing complexities.

Further, as there is no single repository listing all product installations, it makes it even more complicated for organizations to take stock of their Oracle deployments. Nor does Oracle use license keys, which might have helped protect organizations against unauthorized downloading of or access to products.

Unfortunately, despite clients facing significant complexities with licensing, Oracle hasn’t been able to simplify its pricing terms or bring transparency into its contracts.

To make matters worse, Oracle is known to impose extensive audits and levy substantial penalties when clients (unknowingly) infringe upon licensing terms.

Some clients, especially those with large-scale Oracle deployments, turn to companies such as Palisade Compliance — independent experts in managing Oracle licenses — for help.

An Oracle audit can be quite grueling and is often seen negatively by customers who find it hard to defend themselves as the varying guidelines and contracts almost require IT teams to be lawyers to ‘decode’ correctly.

Palisade Compliance’s team, during an audit, can provide significant support and help negotiate licensing terms effectively, often shaving millions off penalties, and creating more transparency for the future. They also provide licensing advice and guidance across a myriad of situations.

One of the biggest licensing challenges cropped up globally a few years ago when several Oracle clients virtualized their databases using VMware.

Doing so voided Oracle’s licensing terms because the use case was not specifically mentioned in the guide provided by Oracle, which meant all of the organizations were liable to pay millions in penalties to the Redwood City, California-based software giant.

To be fair, Oracle does offer great products, and it’s reflected in the fact that so many organisations have built their IT infrastructure on the back of Oracle’s various solutions. However, making sure that they’re making the most of their investment through maintaining license compliance is instrumental in maximizing their ROIs.

To help with this, it’s a good idea to connect with Palisade Compliance’s experts. Even before an Oracle client is audited, the Palisade team can come in, create an extensive inventory of the organization’s licenses and usage rights, decode the various contracts and guidelines, and help navigate the findings, whether the organization is under-licensed or if they’re paying for more than they need.

Support from experienced licensing consultants such as those at Palisade Compliance can make a world of difference. With over 200 years of collective former Oracle experience, including Oracle license auditing, deal construction, contracts, global best practice and support, each Palisade team member works in the best interest of the client organization, rather than Oracle’s. This is true independence, as Palisade is neither a partner nor reseller for Oracle

Get in touch with Palisade today to help optimize your Oracle ecosystem now.