Oracle Audit Defense Strategies

Oracle audits can be costly for businesses, with unexpected fees for software licenses. Even experienced IT asset management professionals may find Oracle audits challenging due to the various people, challenges, and goals involved in each audit. However, a key factor in the success of an Oracle license audit is the ability to take control of the audit from the start. Here are some suggestions for creating an Oracle audit defense plan:

1. Develop an Oracle audit defense strategy with the help of independent Oracle licensing experts who know how to analyze Oracle audit scripts.
2. Assign one person to handle all communication with Oracle to ensure a clear record of the information shared.
3. Engage an Oracle audit negotiation advisor with experience in Oracle license management and audits, preferably someone who has worked at Oracle.
4. Include the audit advisor in negotiations before the audit begins to:

• Negotiate which products Oracle will audit and which ones to exclude.
• Exclude specific geographical areas or legal entities.
• Decide which tools to use, such as Oracle scripts or manual declarations/data sharing.
• Set an end date for the audit that both parties agree upon.

Use the audit advisor at the end of the audit to:

• Understand and potentially challenge the findings in the audit report.
• Determine how much other companies have paid for similar findings to avoid overpaying Oracle.

How to prepare for an Oracle audit

1. Who determines the overall timeline for the Oracle audit?
2. Is it required to run Oracle scripts during the audit?
3. How do Oracle’s licensing policies apply if they are not referenced in my contract?
4. Where will the data collected by Oracle scripts be analyzed?
5. What information will the scripts collect?
6. Is it necessary to sign a nondisclosure agreement with Oracle before the audit?

What is an Oracle audit?

An Oracle audit is a formal review of a customer’s use of Oracle software licenses by Oracle License Management Services (LMS), also known as Oracle Global License Audit Services (GLAS). 

An Oracle audit can be initiated informally, such as when Oracle sales suspects non-compliance, or it can be triggered by a formal audit letter addressed to senior management. As soon as a customer receives an Oracle audit letter, they should begin developing a defense strategy. 

What is Oracle LMS?

Oracle LMS is a global organization with its main analysis center in Romania that is responsible for generating billions of dollars in revenue for Oracle through license audits. It is known as Oracle’s feared audit organization and is a significant contributor to Oracle’s license sales.

Oracle audit process

1. Data collection – This involves the use of Oracle audit scripts on servers running Oracle software.
2. Preliminary audit report – Oracle or the audit partner shares a draft report of the audit results for the customer to review.
3. Final audit report – Oracle typically closes the report, but not always, after the customer has accepted the findings.
4. Resolving audit findings – Oracle sales negotiates with the customer on the purchase of licenses and associated terms and conditions to cover any shortfalls identified in the audit report. According to the standard Oracle audit clause, the customer has 30 days from the final report to address any shortfalls.

Common Oracle audit compliance issues include:

1. Using management packs without proper licensing – a common mistake even among experienced Oracle DBAs
2. Using management packs on the standard edition – this is not allowed
3. Historical use of database options and packs – long-term use of these can be costly
4. Use of advanced compression – this feature has various applications
5. Use of Oracle databases in virtual environments
6. Multiplexing

During Oracle LMS negotiations, it is important to understand how seriously Oracle views each compliance issue.

FAQ on Oracle Audit

1. What is Oracle LMS, and how does it relate to Oracle audits? Oracle LMS, also known as Oracle Global License Audit Services (GLAS), is Oracle’s official audit organization that reports to Oracle’s CFO. It is responsible for conducting Oracle license audits and generating revenue for Oracle through these audits.
2. How can a business prepare for an Oracle audit? A business can prepare for an Oracle audit by developing a defense strategy with the help of independent Oracle licensing experts, assigning one person to handle communication with Oracle, and engaging an Oracle audit negotiation advisor with relevant experience. The business should also include the audit advisor in negotiations before the audit begins to set the scope, tools, and end date for the audit.
3. What are common Oracle audit compliance issues? Common Oracle audit compliance issues include using management packs without proper licensing, using management packs on the standard edition, historical use of database options and packs, use of advanced compression, use of Oracle databases in virtual environments, and multiplexing.
4. How can an Oracle audit negotiation advisor help during the audit process? An Oracle audit negotiation advisor can assist in uncovering blind spots, controlling the audit to eliminate surprises, and avoiding mistakes during negotiation before and after the audit. They can also help to understand and potentially challenge the findings in the audit report and determine how much other companies have paid for similar findings to avoid overpaying Oracle.
5. Why is it important to understand how seriously Oracle views each compliance issue during negotiations? It is important to fully understand the severity of each compliance issue during negotiations with Oracle LMS because the reasons for non-compliance can vary and may impact the outcome of the negotiation. Understanding the seriousness of each issue can help a business negotiate a more favorable resolution.

How our experts can help

Our Oracle Audit Defense service helps businesses navigate the complex and often costly process of an Oracle license audit. Our team of experienced Oracle licensing experts and audit negotiation advisors has the knowledge and skills to develop a customized defense strategy that is tailored to your specific needs.

During the audit process, we provide support and guidance to help you take control of the audit and eliminate surprises. We can assist in negotiations before the audit to set the scope, tools, and end date for the audit, as well as at the end of the audit, to understand and potentially challenge the findings in the report and negotiate a favorable resolution.

Our Oracle Audit Defense service includes the following:

• An Oracle licensing expert to analyze Oracle audit scripts and develop a defense strategy
• An Oracle audit negotiation advisor with relevant experience to assist in negotiations before and after the audit
• Support and guidance throughout the audit process
• Assistance in uncovering blindspots and avoiding costly mistakes

Don’t let an Oracle audit catch you off guard. Contact us today to learn more about our Oracle Audit Defense service and how we can help protect your business.