Oracle License Audits – ABC
What is an Oracle license audit ?
An Oracle license audit is a process in which Oracle Corporation, the company that produces the Oracle database software, checks to see if a company or organization is using its software in accordance with the terms of the license agreement. This typically involves reviewing the company’s systems and processes to determine how the software is being used, as well as examining the company’s records to ensure that it has paid for all necessary licenses.
During an Oracle license audit, the company being audited may be required to provide documentation and other information to demonstrate that it is using the software in compliance with the terms of the license agreement. This may include information about the number of users accessing the software, the type of hardware on which it is installed, and the specific features and functions that are being used.
If the audit finds that the company is not in compliance with the terms of its license agreement, Oracle may take action to remedy the situation. This may include requiring the company to purchase additional licenses or make other changes to ensure compliance. In some cases, Oracle may also seek damages if it determines that the company has been using its software without proper authorization.
It is important for companies to be prepared for an Oracle license audit, as non-compliance can result in significant financial penalties and other consequences. It is also important for companies to carefully review and understand the terms of their Oracle license agreements to ensure that they are using the software in accordance with those terms.
Oracle License Audit Process
Here are the general steps involved in the Oracle license audit process:
- Audit Notification: Oracle will send an audit notification to the company being audited. The audit letter will include a list of specific information and documentation that is needed in order to conduct the audit.
- Gathering and providing requested information: The company being audited will have a set period of time to gather and provide the requested information and documentation. This may involve reviewing and organizing records, as well as gathering any additional information that may be required.
- Review of information and documentation: The auditing party will review the information and documentation provided by the company to determine whether the company is in compliance with its Oracle license agreement. This may involve evaluating the company’s software usage patterns and comparing them to the terms of the license agreement, as well as verifying that the company has the appropriate number of licenses for its usage.
- Determination of compliance: Based on its review of the information and documentation provided, the auditing party will determine whether the company is in compliance with its Oracle license agreement.
- Resolution of non-compliance: If the audit finds that the company is not in compliance with its Oracle license agreement, Oracle may require the company to purchase additional licenses or pay back fees for under-licensed usage. In some cases, non-compliance may also result in termination of the company’s Oracle license agreement.
Who are selected for Oracle license audits?
Oracle may select customers for license audits for a variety of reasons. Some common reasons that Oracle may conduct an audit include:
- Random selection: Oracle may randomly select customers for audits as a way of ensuring that its licensing agreements are being followed across its customer base.
- High-risk customers: Oracle may target customers that are considered high-risk for non-compliance, such as customers with a history of under-licensed usage or customers with a large number of users or high volume of data processing.
- Complaints or reports: Oracle may conduct audits in response to complaints or reports of potential non-compliance, either from within the company or from external sources.
- Changes in business or technology: Oracle may conduct audits in response to changes in a customer’s business or technology, such as when a customer upgrades to a new version of Oracle software or changes its deployment model (e.g., from on-premises to cloud-based).
It is important for companies using Oracle software products to carefully review their Oracle license agreements and keep accurate records of their software usage in order to avoid any potential issues during an Oracle license audit
Which department conducts Oracle license audits?
Oracle license audits are typically conducted by Oracle’s License Management Services (LMS) department. LMS is responsible for managing Oracle’s global licensing and compliance efforts, including conducting license audits of Oracle customers.
During an Oracle license audit, LMS or an authorized third party will review a company’s use of Oracle software products to ensure that the company is in compliance with its Oracle license agreements. This may involve reviewing the company’s Oracle software installations, usage patterns, and documentation related to the company’s Oracle license agreement.
If the audit finds that the company is not in compliance with its Oracle license agreement, LMS may require the company to purchase additional licenses or pay back fees for under-licensed usage. In some cases, non-compliance may also result in termination of the company’s Oracle license agreement.
How to prepare for an Oracle license audit?
The best way to prepare for an Oracle license audit, is to quickly conduct an Oracle license review using the same tools and methods as the Oracle audit will use. This will enable you to make better decisions for your company.
What are Oracle license audit scripts?
Oracle license audit scripts are a set of scripts that have been developed by Oracle audit team. The customers will need to execute them on the servers running Oracle. The scripts will collect information about Oracle software deployed and used. Oracle will then analyze the results and compare it to your license entitlements.
Are you under an Oracle license audit? Reach out to us to understand how we can help your company.